Options portfolio

Current Open Trades with corresponding MTM:
BXG
-10 BXG 100 OCT 07 7.5 PUT $325
-40 BXG 100 FEB 08 10 PUT ($2020)
======================== -1695

CCRT
-75 CCRT 100 OCT 07 20 PUT $2037.50.
-2 CCRT 100 OCT 07 22.5 CALL $120
+10 CCRT 100 JAN 10 20 CALL $300.00
======================= +2457.50

CROX
-6 CROX 100 OCT 07 55 PUT $300
-6 CROX 100 OCT 07 70 CALL -255
========================== +45


CRS
-2 CRS 100 OCT 07 110 PUT $374
========================+374

GRMN
-5 GRMN 100 OCT 07 105 PUT $262.50
-5 GRMN 100 OCT 07 125 CALL -725
========================== (-462.50)

LVS
-7 LVS 100 OCT 110 PUT $52.50
-7 LVS 100 OCT 165 CALL $574
========================== +626.50

NYX
-6 NYX OCT 07 80 Call (-132)
+6 NYX JAN 10 80 Call (120)
-10 NYX Jan 10 80 Put (75)
========================= -327

TGIC
+10 TGIC APR 08 15 CALL $1700.
+15 TGIC APR 8 25 CALL $(-450)
-25 TGIC APR 8 25 PUT +0
=========================+1250

XL
Sell 3 XL Oct 75 Call -735
Buy 3 XL JAN 10 60 Call +1275
=========================+540



OPEN PnL +2808.50
CLOSED PnL +7032.50
Total PnL====== +9841.

Thanks,
NYCDT
 
Placed two trades

+35 CCRT OCT 07 20 PUT $0.45
+2 CCRT OCT 07 22.5 CALL $0.55

Placed this order last night to readjust risk and unfortunately had a nice move in the underlying during the day. Oh well, win some, lose some.

Up a little over 3% today.


Thanks,
NYCDT
 
Hi NYC, thanks for your feedback...as you can probably tell, I'm not to horribly up to speed on more complex options strategies, but I did base on my research more on market bias going into end oy year, and the individual charts of each i.e. looking for oversold charts. I also looked at calls vs puts bias, and as you said out of the money - ideally I wont be blown out in an oct crash! :)

I appreciate your thread!!!

Quote from nycderivtrader:

ROCKN,

You sure are heavily LONG. It seems like you for the most part are buying very out of the money calls, a heavily bullish portfolio- this is very different from my portfolio- your 70% returns are amazing.

My personal concern, if I had this degree of long leverage, would be any kind of dip/correction similar or worse to what we just had. The time value of these isn't as stable as a further out contract would grant you and would therefore but much more susceptible to downward movement. This is a focus on the risk, clearly an upward move would do great wonders for this portfolio.

Best wishes,

NYCDT
More...
 
Papertrading short options isn't really going to help you all that much, aside from learning how to submit orders and seeing how the basic mechanisms work.

This strategy will wipe you out if you aren't great at managing size and managing losses. I recommend you trade this on a real account with a lot or two and see what I mean.

Selling volatility and buying volatility have similar payoffs over time; Probabilities of winning trade totals are inverse, but high probability short winning trades' benefits are entirely (and equally) offset by much larger losses when they do occur at a lower frequency.

The options guys here refer to it as expectancy I believe... its all statistics. The sooner you dismiss the notion that short selling options is more profitable than being long options, the sooner you'll be on your way to clarity... If you want to literally sell volatility, then you can do it with the broad indexes via trading vix futures (and calendar spreads), or perhaps learn about some options spreads that play changes in volatility (ie butterfly).
 
Sciabrino,

Thank you for the sound advice. I will consider what you have said and take what I can from it. As I stated earlier, what I am really trying to gain from this journal is a better sense of my capabilities, while generating further experience in risk management. I do understand that this is not a perfect situation, however, I am trying to benefit as greatly as possible from it.

Thanks,
NYCDT




Quote from scriabinop23:

Papertrading short options isn't really going to help you all that much, aside from learning how to submit orders and seeing how the basic mechanisms work.

This strategy will wipe you out if you aren't great at managing size and managing losses. I recommend you trade this on a real account with a lot or two and see what I mean.

Selling volatility and buying volatility have similar payoffs over time; Probabilities of winning trade totals are inverse, but high probability short winning trades' benefits are entirely (and equally) offset by much larger losses when they do occur at a lower frequency.

The options guys here refer to it as expectancy I believe... its all statistics. The sooner you dismiss the notion that short selling options is more profitable than being long options, the sooner you'll be on your way to clarity... If you want to literally sell volatility, then you can do it with the broad indexes via trading vix futures (and calendar spreads), or perhaps learn about some options spreads that play changes in volatility (ie butterfly).
More...
 
Current Open Trades with corresponding MTM:
BXG
-10 BXG 100 OCT 07 7.5 PUT $450
-25 BXG 100 FEB 08 10 PUT ($825)
======================== -375

CCRT
-40 CCRT 100 OCT 07 20 PUT $1205
+10 CCRT 100 JAN 10 20 CALL $1450
======================= +2655

CROX
-6 CROX 100 OCT 07 55 PUT $465
-6 CROX 100 OCT 07 70 CALL +60
========================== +525

GRMN
-5 GRMN OCT 07 105 PUT -1600
-5 GRMN OCT 07 125 CALL +700
========================== (-900)

JAKK
-30 JAKK OCT 07 30 CALL +825
========================== +825


LVS
-7 LVS 100 OCT 110 PUT $+175
-7 LVS 100 OCT 165 CALL $+819
========================== +994

NYX
-6 NYX OCT 07 80 Call (-465)
+6 NYX JAN 10 80 Call +765
-6 NYX Jan 10 80 Put +660
========================= +960

TGIC
+10 TGIC APR 08 15 CALL $2000
+15 TGIC APR 8 25 CALL $(-150)
-25 TGIC APR 8 25 PUT +750
========================= +2600

XL
-3 XL Oct 75 Call -1140
+3 XL JAN 10 60 Call +1845
========================= +705



OPEN PnL +7989
CLOSED PnL +13,582
Total PnL====== +21571

Thanks,
NYCDT
 
Will construct a PnL chart in the future (cpu went to hell and need to reinstall programs).

This is what I have posted on the journal as far as total PnL MTM and the corresponding dates:


9/16 +4,343.50
9/20 +11,960.50
9/21 +9,806.50
9/24 +10,108
9/27 +7,585
9/30 +9,841
10/5 +21,571

All, please note that this is a paper account at TOS, 100k starting. I understand what this paper account does and does not provide in relation to real life trading. I am taking it for what it provides me-

Thanks and keep the critical suggestions coming!

NYCDT
 
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