TonySanDiego trades an option

T

TonySanDiego

Since I don’t normally hang out in the options area, I thought I would post an option trade I am making.

Bought a put on EXPE just after that 11:30 ramp up.

BOT (1) put Nov 50 @ $3.50

Watched EXPE for a while and it seemed to be quite strong today. So... I was getting worried about my put position getting very negative.

SO......... I bought 50 shares of EXPE at 51.33 as a hedge.

I am going overnight with 1 EXPE Nov 50 put and 50 shares of EXPE long.

I think I will make a little money if EXPE shoots off to the moon in the next couple of days. The put should decrease in value at a slightly slower pace than the stock price rises. But it is really only a hedge. Lets me stay with my put through this wiggle.

I should make money if EXPE falls on hard times in the next couple of days. If I do nothing and EXPE falls, the put will increase in value progressively faster than the half lot of EXPE stock will decrease in value. If EXPE looks to be faltering, I will take off the stock at a small profit and let the put do it's work.

If EXPE does nothing significant in the next few days, I will have to find a spot and get out before time decay does it's dirty work on the put value.

That the theory anyhow.

In summary: 1 EXPE Nov 50 put @ $3.50
50 EXPE long @ 51.33

Any thoughts from the options regulars?

All this high finance is tough on me.. (1) put, 50 shares.. wow.

But you gotta learn somewhere... :confused:

Gotta luv IB too.
 
why didn't you just short an ATM call and buy the stock??

....................................or an ITM call.............................??

just curious. i am a very bad options trader. i gave it up, and started making more money than i lost.
 
Originally posted by TonySanDiego
Since I don’t normally hang out in the options area, I thought I would post an option trade I am making.

Bought a put on EXPE just after that 11:30 ramp up.

BOT (1) put Nov 50 @ $3.50

Watched EXPE for a while and it seemed to be quite strong today. So... I was getting worried about my put position getting very negative.

SO......... I bought 50 shares of EXPE at 51.33 as a hedge.

I am going overnight with 1 EXPE Nov 50 put and 50 shares of EXPE long.

I think I will make a little money if EXPE shoots off to the moon in the next couple of days. The put should decrease in value at a slightly slower pace than the stock price rises. But it is really only a hedge. Lets me stay with my put through this wiggle.

I should make money if EXPE falls on hard times in the next couple of days. If I do nothing and EXPE falls, the put will increase in value progressively faster than the half lot of EXPE stock will decrease in value. If EXPE looks to be faltering, I will take off the stock at a small profit and let the put do it's work.

If EXPE does nothing significant in the next few days, I will have to find a spot and get out before time decay does it's dirty work on the put value.

That the theory anyhow.

In summary: 1 EXPE Nov 50 put @ $3.50
50 EXPE long @ 51.33

Any thoughts from the options regulars?

All this high finance is tough on me.. (1) put, 50 shares.. wow.

But you gotta learn somewhere... :confused:

Gotta luv IB too.
More...

There is no edge in what you did; you gave up the spread and hedged ....

And; where did you get your delta?
 
Bung,

I like IB because I can do these things for cheap.

Doing things cheap is the best way to learn.

Mwtooxx,

In case you didn't notice, I don't have much of a clue exactly what I am doing. I have never tried to hedge a position before. This started out as a straight "buy a put". But EXPE looked too frisky, so I hedged it.

It may well turn out I should have simply sold my put and closed the deal out.

Anyway, that is why I have such a large position on... :p
 
TonySD

I trade equities only, and was wondering how this is working out? Looks like EXPE is up about 1.50, and your put is down less than a dollar.
Keep us posted (pun intended) :D
 
OK..

My first foray into options hasn't worked out exactly according to Hoyle, but everyone starts somewhere.

The first 2 trades that I closed out today could have been even or mayby just a teenie winner IF I had been paying closer attention.

I have put on a couple of additional positions. One bear spread on BAC, we're fat below 65.00 at expiration.

I went short OMC at 60.00, and protected it with a Nov call at 60.00. Hope OMC tanks big next week.

Here are the positions.
 

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Originally posted by TonySanDiego
OK..

My first foray into options hasn't worked out exactly according to Hoyle, but everyone starts somewhere.

The first 2 trades that I closed out today could have been even or mayby just a teenie winner IF I had been paying closer attention.

I have put on a couple of additional positions. One bear spread on BAC, we're fat below 65.00 at expiration.

I went short OMC at 60.00, and protected it with a Nov call at 60.00. Hope OMC tanks big next week.

Here are the positions.
More...

Throwing darts ...
 
Originally posted by metooxx


And; where did you get your delta?
More...

I would think he assumed the delta of an ATM option to be .50.

And; you know what happens when you ASSume.
 
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