Vertical Spreads for Aggressive Growth

Quote from rallymode:

Cache, take a look at this:

sc3st.png
More...

even if it doesnt bounce here, you see the gap support around 472? I have an active order for a june 470/465 bull put spread for $1 credit. I think 25 points is a pretty solid cushion. I hope i get a fill, the ask is only .10 away but barely any liquidity.

EDIT: make that NO liquidity whatsoever LOL
 
Quote from rallymode:

even if it doesnt bounce here, you see the gap support around 472? I have an active order for a june 470/465 bull put spread for $1 credit. I think 25 points is a pretty solid cushion. I hope i get a fill, the ask is only .10 away but barely any liquidity.
More...

Just glancing at the chart I didn't notice the gap support. Credit is pretty good right now. Historically I haven't traded SOX because of the low liquidity, but given the current setup, I might open a position.
 
Quote from Cache Landing:

Just glancing at the chart I didn't notice the gap support. Credit is pretty good right now. Historically I haven't traded SOX because of the low liquidity, but given the current setup, I might open a position.
More...

at the end of nov sox gapped from 465 to 472 or so. then in late december that proved to be support. 490 is pretty solid, after which 472 becomes the nxt major support. Even after that, 460 is good support going back to june '05. i think the 465/470 strike is the optimal r/r play here.
 
Quote from rallymode:

I hope i get a fill, the ask is only .10 away but barely any liquidity.
More...

LOL. Someone just got a fill on the 470 and 465 puts with 1 contract. Which is the only contract traded today. No liquidiy is an understatement. Was that you?
 
Quote from rallymode:

LOL. Someone just got a fill on the 470 and 465 puts with 1 contract. Which is the only contract traded today. No liquidiy is an understatement. Was that you?
More...

Nope, but I do have an order in. I think I'm in line behind you, so I think I'll be waiting for a long time.:D I'm not gonna chase this one though, so if I don't get filled it's ok.
 
Today's Action

BTO 4 WMT JUN 47.5 c @ 0.55

Year to Date P/L

Account Value: $12,257.50

YTD Gross P/L: 2,575.00

YTD Commiss: 317.50

YTD Net P/L: 2,257.50

YTD % P/L: 22.6%


Alright, I admit that this was probably one of the less intelligent trades that I've made so far on this journal. For some reason I think the ER is going to be a non-event. I'm expecting a climb to around 49.50 during the next couple weeks.
 
Quote from Cache Landing:

What do you think about WMT?
More...

i played wmt short last month after the bullish barron article. I never liked retail stocks, they do some weird moves sometimes. Not sure what to do with it here.
 
Quote from rallymode:

i played wmt short last month after the bullish barron article. I never liked retail stocks, they do some weird moves sometimes. Not sure what to do with it here.
More...

As I mentioned. I am expecting a bounce from where it closed today. IV is really low, even thoug there is an ER scheduled for next tues. Once it starts to get close to 49 I think it will start to have some trouble. There is strong resistance at 50. I've got too different game plans for exiting this, depending on how hard the bounce is.
 
In the case of short term (i.e. front month) straight options, I prefer the "in the money" to the "out the money". ITM leaves more options if my forecast is not fully confirmed.

I size my position based on risk, not position's cost (higher for OTM), but even if I sized it for "even money" (as shown bellow), still the ITM pay-off seemed better.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1070079>
Quote from Cache Landing:

...
BTO 4 WMT JUN 47.5 c @ 0.55
...
Alright, I admit that this was probably one of the less intelligent trades that I've made so far on this journal. For some reason I think the ER is going to be a non-event. I'm expecting a climb to around 49.50 during the next couple weeks.
More...
 

Attachments

You must log in or register to reply here.
Back
Top