Vertical Spreads for Aggressive Growth

ChrisM · Mar 14, 2006

Quote from Cache Landing:

I know that it is a topic of much debate, but I don't consider the way that I trade to be gambling. I don't ever get as nervous trading options as when I'm all in on even a decent hand.

That is why I am talking about the past. I do not trade like that any more, and I would not care about high returns in daytrading. Right, it is topic for longer discussion, but let me put here quote from my friend, former pit trader:

"Both options and hard liquor work well for smart people only"

Cache Landing · Mar 15, 2006

WOW! crazy morning for some of the positions I was looking to get into. SHLD up $16 on good earnings. PALM down on a downgrade after the split causing RIMM to rally. Just what I needed 2 days before expiry. LOL :mad:

cnms2 · Mar 15, 2006

And you said you didn't like gambling ... Good trading!

Quote from Cache Landing:

WOW! crazy morning for some of the positions I was looking to get into. SHLD up $16 on good earnings. PALM down on a downgrade after the split causing RIMM to rally. Just what I needed 2 days before expiry. LOL

Cache Landing · Mar 15, 2006

Quote from cnms2:

And you said you didn't like gambling ... Good trading!

Yep, this morning just reaffirms that fact.

Even though it is boring, I would much rather be 2 stan. dev. OTM right now.

Cache Landing · Mar 15, 2006

Well it didn't once the beige book came out it didn't look like SPY was going to come back down, so I had to bail out on the 130 short calls @ .5 for a measly $20 gain.

Cache Landing · Mar 15, 2006

Today's Action

BTC 4 SPY MAR 130c @ .5

Year to Date P/L

Account Value: $10,298.00

YTD Gross P/L: 430.00

YTD Commiss: 132.00

YTD Net P/L: 298.00

YTD % P/L: 3.0%

I was really wishing today that I had just gone with SPX instead of SPY. When I put on the position I couldn't get a good fill on SPX so I switched over. I didn't have the nerve to see if we would drop down below 130 before I got assigned given the dividend and all. :mad:

Cache Landing · Mar 16, 2006

RIMM dropped down quick enough that I was able to roll the calls into APR for a credit, so I took the opportunity. I think they are about ready for a breather but expiry is only a day away. Figured I would lock in another months time to let them pull back a bit.

Cache Landing · Mar 16, 2006

Quote from Cache Landing:

RIMM dropped down quick enough that I was able to roll the calls into APR for a credit, so I took the opportunity. I think they are about ready for a breather but expiry is only a day away. Figured I would lock in another months time to let them pull back a bit.

Glad I acted quick on that one, my 0.20 credit turned into a 0.45 debit in a hurry.

I don't need anything decreasing my chances any further on this one.

ChrisM · Mar 16, 2006

Quote from Cache Landing:

I was really wishing today that I had just gone with SPX instead of SPY. When I put on the position I couldn't get a good fill on SPX so I switched over. I didn't have the nerve to see if we would drop down below 130 before I got assigned given the dividend and all. [/B]

Cache,

try ES. Smaller, but you get filled in a flash (sometimes).

Cache Landing · Mar 16, 2006

Quote from ChrisM:

Cache,

try ES. Smaller, but you get filled in a flash (sometimes).

Any experience with XSP? Seems that the fills would be just as good as SPY but are European style. They are more thinly traded though.