Vertical Spreads for Aggressive Growth

Quote from Cache Landing:

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.
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cache, given the current economic situation, i rather short wmt on rallies than try to catch a rally. i dont have much experience with retail stocks though as i said i dont like the way they move.
 
Quote from cnms2:

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.
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I usually prefer ITM also. This choice had more to do with an adjustment that I'm considering if I'm correct about the underlying.
 
Over the weekend I re-evaluated my WMT position. Given the ER coming up I decided to stick with my usual guidelines, so I've entered a pretty tight trailstop on the long calls. It might continue to go higher today, but I'm up 60% on the position which is good enough for one day.:)
 
Today's Action

STC 4 WMT JUN 47.5 c @ 0.85

Year to Date P/L

Account Value: $12,369.50

YTD Gross P/L: 2,695.00

YTD Commiss: 325.50

YTD Net P/L: 2,369.50

YTD % P/L: 23.7%


Trailstop was triggered.
 
Unfortunately support didn't hold and my stop was triggered on MRVL. I'm leaving the long 70 calls just in case there is a miracle jump after the ER. Overall loss on the position was $100 + commission.


Today's Action Cont.

BTC 4 MRVL MAY 67.50 c @ 0.05
BTC 4 MRVL MAY 52.5/55 p @ 1.60

Year to Date P/L

Account Value: $12,251.50

YTD Gross P/L: 2,595.00

YTD Commiss: 343.50

YTD Net P/L: 2,251.50

YTD % P/L: 22.5%
 
Nica call! :)
Quote from Cache Landing:

Over the weekend I re-evaluated my WMT position. Given the ER coming up I decided to stick with my usual guidelines, so I've entered a pretty tight trailstop on the long calls. It might continue to go higher today, but I'm up 60% on the position which is good enough for one day.:)
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I had considered opening some JUN SPX bull puts today, but I'm not in a hurry to get JUN positions. Also, I think the big moves are going to come after the PPI/CPI reports. I'll be looking to open index positions ofter the CPI.
 
Might not be the best timing but I opened a long call position in QQQQ.

I had a order in for a bull put on PAAS but it gapped this morning and I wasn't willing to chase it.
 
Today's Action

BTO 3 QQQQ JUN 40 c @ 0.95
STO 4 PAAS JUN 17.5/20 p @ 1.00

Year to Date P/L

Account Value: $12,235.00

YTD Gross P/L: 2,595.00

YTD Commiss: 360.00

YTD Net P/L: 2,235.00

YTD % P/L: 22.4%
 
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