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Trading in Luxury
- Thread starter traderlux
- Start date
cash track trade track
week ahead oct 9, things to possibly watch out for,
No Ko Kim making threats
Monday 9, USA holiday, brings out the anti-celebrators
tue 10, conference organized by Jim Grant with Jim Chanos, Marc Cohodes, and other big dollar guys, could be sparks in some stocks or sectors
wed 11, release of Fed minutes from last meeting
thu 12, JPM e/r
fri 13, could be anti-celebrators for Friday 13th
fri 13, BAC, WFC, JBHT, e/r
fri 13, option expiry week 2 for October
week ahead oct 9, things to possibly watch out for,
No Ko Kim making threats
Monday 9, USA holiday, brings out the anti-celebrators
tue 10, conference organized by Jim Grant with Jim Chanos, Marc Cohodes, and other big dollar guys, could be sparks in some stocks or sectors
wed 11, release of Fed minutes from last meeting
thu 12, JPM e/r
fri 13, could be anti-celebrators for Friday 13th
fri 13, BAC, WFC, JBHT, e/r
fri 13, option expiry week 2 for October
from optionprofitsdaily October 6, 2017
A Bear Call Spread in COST
For COST, we could sell an October 20 $160 call for about $1.30 and buy an October 20 $162.50 call for about $0.70. This trade generates a credit of $60, which is the difference in the amount of premium for the call that is sold and the call that is bought multiplied by 100 since each contract covers 100 shares. That is the maximum potential profit on the trade.
The maximum risk on the trade is $180. The risk is found by subtracting the difference in the strike prices ($250 or $2.50 time 100 since each contract covers 100 shares) and then subtracting the premium received ($70).
This trade offers a return of about 39% for a holding period that is about two weeks. This is a significant return on the amount of money at risk. This trade delivers the maximum gain if COST is below $160 when the options expire, a likely event given the stock’s trend.
Call spreads can be used to generate high returns on small amounts of capital several times a year, offering larger percentage gains for small investors willing to accept the risks of this strategy. Those risks, in dollar terms, are relatively small, about $160 for this trade in COST
A Bear Call Spread in COST
For COST, we could sell an October 20 $160 call for about $1.30 and buy an October 20 $162.50 call for about $0.70. This trade generates a credit of $60, which is the difference in the amount of premium for the call that is sold and the call that is bought multiplied by 100 since each contract covers 100 shares. That is the maximum potential profit on the trade.
The maximum risk on the trade is $180. The risk is found by subtracting the difference in the strike prices ($250 or $2.50 time 100 since each contract covers 100 shares) and then subtracting the premium received ($70).
This trade offers a return of about 39% for a holding period that is about two weeks. This is a significant return on the amount of money at risk. This trade delivers the maximum gain if COST is below $160 when the options expire, a likely event given the stock’s trend.
Call spreads can be used to generate high returns on small amounts of capital several times a year, offering larger percentage gains for small investors willing to accept the risks of this strategy. Those risks, in dollar terms, are relatively small, about $160 for this trade in COST
strike was 14 for the callFri, Oct 13, hedge trade,
TZA Dec 15, long call at $.64
update on vol switch trade
signal switched on Nov 2, to long vol with caution
current plan is to go to cash
as of Nov 2,
sold 12 shares XIV, $111.03,
total cash $1,332.36
starting value, $502.90 jan, 2017
this was a trial with a small amount of actual capital,
I am planning to continue this trade
signal switched on Nov 2, to long vol with caution
current plan is to go to cash
as of Nov 2,
sold 12 shares XIV, $111.03,
total cash $1,332.36
starting value, $502.90 jan, 2017
this was a trial with a small amount of actual capital,
I am planning to continue this trade