Vertical Spreads for Aggressive Growth

you made some good points, i am not a fan of shorting strong stocks either, the last 2 times i was debating on whether to pull the trigger against xom, it fell and i wasnt on that train :D

I dont like holding options more than a week or 2 so going out to July to capture the IV increase won't work for me. I will most likely wait till after their report though, tnx for the response.

Also, saw ur mrvl trade, i am glad someone is milking that stock :)
 
Quote from rallymode:

you made some good points, i am not a fan of shorting strong stocks either, the last 2 times i was debating on whether to pull the trigger against xom, it fell and i wasnt on that train :D

I dont like holding options more than a week or 2 so going out to July to capture the IV increase won't work for me. I will most likely wait till after their report though, tnx for the response.

Also, saw ur mrvl trade, i am glad someone is milking that stock :)
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I should have been more clear. I wasn't suggesting that you hold the JUL puts for a long time. I was saying to hold them the same amount of time that you would be holding the MAY puts. I would simply be looking for the downward move accompanied by an IV increase. That is where I would take the profits. I would opt for the JUL puts, because they aren't that much more expensive than the MAY puts given the current difference in vols. They also won't lose value as fast if we are wrong about the direction.
 
Quote from Cache Landing:

I'm still bullish on them but the short strike was too close to hold for a month with not much profit left to juice out of it. The long puts that I still hold were close to valueless, so I'll hold them just in case there is a big drop in the underlying.
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If you remember, I made this comment about DELL at the end of MAR when I bought back the short leg of the spread. This is a pretty good example of a lucky trade. The underlying gapped down this morning and I sold remaining 4 puts. It's nice to get lucky on occassion.:D
 
Today's Action

STC 4 DELL APR 27.5 p @ 0.35

7 SPX APR 1240/1250 p Expired Worthless (profit of $310)

7 SPX APR 1340/1350 c Expired Worthless (profit of $725)

STC 4 INFY MAY 80 p @ 1.85

Year to Date P/L

Account Value: $12,459.50

YTD Gross P/L: 2,725.00

YTD Commiss: 265.50

YTD Net P/L: 2,459.50

YTD % P/L: 24.6%
 
Today's Action Cont..

BTO 2 BAC MAY 50 p @ 3.20

Year to Date P/L

Account Value: $12,456.50

YTD Gross P/L: 2,725.00

YTD Commiss: 268.50

YTD Net P/L: 2,456.50

YTD % P/L: 24.6%

I couldn't resist getting into BAC at the heavy resistance we are currently at. It was also enticing that I got filled for 3.20 when it was about $3.17 ITM. The earnings report is behind them so I don't have to worry as much about a breakout due to an unanticipated event. However, I couldn't convince myself to increase the position size on this one, or to go after the more agressive 57.50 strike.
 
Quote from Cache Landing:

Today's Action Cont..

BTO 2 BAC MAY 50 p @ 3.20

Year to Date P/L

Account Value: $12,456.50

YTD Gross P/L: 2,725.00

YTD Commiss: 268.50

YTD Net P/L: 2,456.50

YTD % P/L: 24.6%

I couldn't resist getting into BAC at the heavy resistance we are currently at. It was also enticing that I got filled for 3.20 when it was about $3.17 ITM. The earnings report is behind them so I don't have to worry as much about a breakout due to an unanticipated event. However, I couldn't convince myself to increase the position size on this one, or to go after the more agressive 57.50 strike.
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nice going , CL
 
On the one year chart BAC put a classic flat top penant, and its latest upswing is on growing volume. On lower time frames the momentum is upwards too. It seems that the probability of an upwards breakout is higher, and to enter a short swing position I would wait for a confirmation of a reversal, or at least a retracemet.
Quote from Cache Landing:

BTO 2 BAC MAY 50 p @ 3.20
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I couldn't resist getting into BAC at the heavy resistance we are currently at. It was also enticing that I got filled for 3.20 when it was about $3.17 ITM. The earnings report is behind them so I don't have to worry as much about a breakout due to an unanticipated event. However, I couldn't convince myself to increase the position size on this one, or to go after the more agressive 47.50 strike.
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Most of this account is in cash right now and earnings are pretty much behind us. I'll be looking for any good ATM spreads. If anyone knows of a couple potential tickers, feel free to list them.:D
 
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