Purely Mechanical Option Trading Part 2

Placed the following bracket orders today:

[ Trade No. 1 ]
SPY NOV 142 Puts
Buy Limit: 1.95 (filled)
Sell Limit: 2.45
Stop: 1.17



[ Trade No. 2 ]
SPY NOV 142 Calls
Buy Limit: 1.35 (not filled yet)
Sell Limit: 1.75
Stop: .95


Jeff
 
October 2012 Completed:

Updated October trades:

10-02-12
SPY OCT 146 Puts
Buy Limit = 2.05
Sell Limit = 2.56 (+25%)
Stop = 1.41
Closed trade on 10/2/2012: +25%
--------------------------------------------------------------------------------
10-03-12
SPY OCT 144 Call
Buy Limit = 1.74
Sell Limit = 2.24 (+28%)
Stop = 1.21
Closed Trade on 10/3/2012: +28%
----------------------------------------------------------------------------------
10-05-12
SPY OCT 148 Put
Buy Limit = 1.80
Sell Limit = 1.80 (0%)
Stop = 1.08
Closed trade on 10/5/2012: 0%
----------------------------------------------------------------------------------
10/9/2012
SPY NOV 146 CALL
BUY LIMIT = 2.05
SELL LIMIT = 2.70
STOP = 1.40 (-32%)
Closed trade on 10/10/2012: -32%
---------------------------------------------------------------------------------
10-10-12
SPY NOV 145 CALL
BUY LIMIT: 1.78
SELL LIMIT: 2.90 (+62%)
STOP: 1.07
Closed trade on 10/17/2012: +62%
----------------------------------------------------------------------------------
10-11-12
SPY NOV 144 CALL
BUY LIMIT: 1.98
SELL LIMIT: 3.60 (+81%)
STOP: 1.35
Closed trade on 10/17/2012: +81%
---------------------------------------------------------------------------------
10-18-12
SPY NOV146 PUT
Buy Limit: 2.06
Sell Limit: changed from 2.68 to 2.58 (+25%)
Stop: 1.24
Closed trade on 10/19/2012: +25%
---------------------------------------------------------------------------------
10-22-12
SPY 143 Nov Calls
Buy Limit: 2.05
Sell Limit: 2.70
Stop: 1.40 (-32%)
Closed trade on 10-24-2012: -32%
--------------------------------------------------------------------------------
10-31-12
SPY NOV 142 Puts
Buy Limit: 1.95
Sell Limit: 2.45 (+25%)
Stop: 1.17
Closed trade on 10-31-2012: +25%
--------------------------------------------------------------------------------
Summary:
6 wins at +246% option gains
2 losers at -64% option losses
1 breakeven 0%
+182% option gains
net account gain: +17.7% (10% invested per trade)
Win/Loss: 75%


Note to self:
Best month on record for this system.



Jeff
 
Quote from jeffalvinson:

October 2012 Completed:

Updated October trades:

10-02-12
SPY OCT 146 Puts
Buy Limit = 2.05
Sell Limit = 2.56 (+25%)
Stop = 1.41
Closed trade on 10/2/2012: +25%
--------------------------------------------------------------------------------
10-03-12
SPY OCT 144 Call
Buy Limit = 1.74
Sell Limit = 2.24 (+28%)
Stop = 1.21
Closed Trade on 10/3/2012: +28%
----------------------------------------------------------------------------------
10-05-12
SPY OCT 148 Put
Buy Limit = 1.80
Sell Limit = 1.80 (0%)
Stop = 1.08
Closed trade on 10/5/2012: 0%
----------------------------------------------------------------------------------
10/9/2012
SPY NOV 146 CALL
BUY LIMIT = 2.05
SELL LIMIT = 2.70
STOP = 1.40 (-32%)
Closed trade on 10/10/2012: -32%
---------------------------------------------------------------------------------
10-10-12
SPY NOV 145 CALL
BUY LIMIT: 1.78
SELL LIMIT: 2.90 (+62%)
STOP: 1.07
Closed trade on 10/17/2012: +62%
----------------------------------------------------------------------------------
10-11-12
SPY NOV 144 CALL
BUY LIMIT: 1.98
SELL LIMIT: 3.60 (+81%)
STOP: 1.35
Closed trade on 10/17/2012: +81%
---------------------------------------------------------------------------------
10-18-12
SPY NOV146 PUT
Buy Limit: 2.06
Sell Limit: changed from 2.68 to 2.58 (+25%)
Stop: 1.24
Closed trade on 10/19/2012: +25%
---------------------------------------------------------------------------------
10-22-12
SPY 143 Nov Calls
Buy Limit: 2.05
Sell Limit: 2.70
Stop: 1.40 (-32%)
Closed trade on 10-24-2012: -32%
--------------------------------------------------------------------------------
10-31-12
SPY NOV 142 Puts
Buy Limit: 1.95
Sell Limit: 2.45 (+25%)
Stop: 1.17
Closed trade on 10-31-2012: +25%
--------------------------------------------------------------------------------
Summary:
6 wins at +246% option gains
2 losers at -64% option losses
1 breakeven 0%
+182% option gains
net account gain: +17.7% (10% invested per trade)
Win/Loss: 75%


Note to self:
Best month on record for this system.



Jeff
More...
Very nice job in this crappy choppy month !
 
Put trend is getting old and tired, I can't believe the trading program spit out another put trade.
This is a late day fill.

Bracket order placed:

SPY NOV 143 puts
Buy Limit: 1.85 (filled)
Sell Limit: 2.40
Stop: 1.30



Jeff
 
Hey Jeff, just wondering, do you put in markets or limited for the orders? Do you have any problem with getting fills on large positions? I wonder how large a position can be before it influences the market price.
 
Quote from EliteTraderNYC:

Hey Jeff, just wondering, do you put in markets or limited for the orders? Do you have any problem with getting fills on large positions? I wonder how large a position can be before it influences the market price.
More...

I place buy "limit" orders.
I really don't know how large an order effects fills.
That's probable something atticus would know.

I can say that the SPY options are so liquid (high volume) that
it would probably take a very large order to prevent filling.
Another thing is, most of my trades are opposite the market direction in order to get filled. That makes it much easier to
get filled because often after I am filled the trade options drop
"even lower then my buy limit."

Jeff
 
11-01-12 12:35 PM
Quote from jeffalvinson:

Put trend is getting old and tired, I can't believe the trading program spit out another put trade.
This is a late day fill.

Bracket order placed:

SPY NOV 143 puts
Buy Limit: 1.85 (filled)
Sell Limit: 2.40
Stop: 1.30



Jeff
More...


Program indicates a change of direction.
Closed open trade: SPY NOV 143 puts at 1.85 (breakeven).

opened new call trade:
SPY DEC 145 Calls
Buy Limit: 1.85 (filled)
Sell Limit: 2.40
Stop: 1.30
 
Quote from jeffalvinson:

Your right, some stocks do have similar attributes as the SPY,
but there is a problem with an individual stocks that an index
or etf doesn't have:
Individual companies are constantly coming up with surprise news (good and bad) that usually occurs when the markets are closed. So if your holding the options and the news is contrary to your option direction, the options open sharply lower then what you paid and usually don't recover again before expiration.
In the 1990's all I traded was individual stock options.
I bought straight calls and puts on companies based on technical and fundamental analysis.
Even when I had good runs of several winning stock trades in a row, there would still come the sudden news event on one of the companies that I was holding,
and it always happens when the option market is closed.
Then when the stock would open, it was sharply against my trade options leaving me at total wipe-outs (or near).
The total loss would negate the last several winning trades!
This happened often enough over a period of years that it caused
me to start looking at indexes, because a "single companies sudden news event" rarely effects an "index that contains 499 other companies."


Jeff
More...


Hello Jeff-
I've been thinking about your suggestion to me on my thread, in which you offered I should consider trading in pairs. I makes good sense to me that trading in pairs can offer some risk protection, in case the market goes either way.

Now what you are saying about trading etfs and or indexes also has some good reasoning behind it. I admit to have been a bit close minded when it comes to individual stocks. My reasoning has been that I would rather buy into the best company within a sector rather than the whole sector, but now I am reconsidering.

The notion that is coming to mind is;
to trade sectors in pairs.

Would it make sense to go long on the top performing sector, and short on the worst performing sector?

Maybe this is the wrong place to ask, but would you ,or any others reading here, have any suggestions on etf's that might help me accomplish this strategy?

Many Thanks- bradson
 
Quote from Bradson Petrog:

Hello Jeff-
I've been thinking about your suggestion to me on my thread, in which you offered I should consider trading in pairs. I makes good sense to me that trading in pairs can offer some risk protection, in case the market goes either way.

Now what you are saying about trading etfs and or indexes also has some good reasoning behind it. I admit to have been a bit close minded when it comes to individual stocks. My reasoning has been that I would rather buy into the best company within a sector rather than the whole sector, but now I am reconsidering.

The notion that is coming to mind is;
to trade sectors in pairs.

Would it make sense to go long on the top performing sector, and short on the worst performing sector?

Maybe this is the wrong place to ask, but would you ,or any others reading here, have any suggestions on etf's that might help me accomplish this strategy?

Many Thanks- bradson
More...



Bradson,

I like your long/short idea on the best and worst performing sectors using etf's.
Now here comes the hard part: finding the best sector in an uptrend that has pulled back to support, and the worst sector in a downtend that has rallied into resistance.
Its hard to find them both at the perfect setup at exactly the same time.


Jeff
 
Jeff,

Are you planning on selling this system or having subscribers to its signals some time in the future?

Fred

PS, hope that wasn't too tasteless a question ;)
 
You must log in or register to reply here.
Back
Top