Vertical Spreads for Aggressive Growth

Neoxx · Jul 23, 2006

Take a look at UNH.

Perfectly poised for a breakout.

ryank · Jul 23, 2006

Quote from Cache Landing:

Ahhhh... just a regular ATM credit spread. I should have tried to juice a little more out of it. Something closer to about 2.40 but my forecast has the odds in my favor anyway. I'll be monitoring it closely, but I plan on giving it plenty of room to evolve.

I don't follow OIH but after a quick review, if it were me I would probably go rallymode's way but to each his own. Right now I'm waiting for SPX to get down to 1230 or below to put on a CTM bull put spread.

Thanks for helping to expand my trading universe a bit

.

rallymode · Jul 24, 2006

Quote from ryank:

I don't follow OIH but after a quick review, if it were me I would probably go rallymode's way but to each his own.

Well, the two trades are slightly different in outlook. I will probably hold my position longer than cache so i wanted to give myself a lil more cushion. Cache, on the other hand will probably close on the bounce. Given todays pop, my guess is that he will be closing after a few more points. I employ the same approach with individual issues. With ETFs and indices i like to give myself a lil more cushion, while taking slightly more risk. His ATM spread will give him a better return on risk as the ATM spread will have a larger decrease of its value. ATM spreads are richer in delta's, hence they are a lil more directional. It all depends on your underlying prediction.

ryank · Jul 24, 2006

Quote from rallymode:

Well, the two trades are slightly different in outlook. I will probably hold my position longer than cache so i wanted to give myself a lil more cushion. Cache, on the other hand will probably close on the bounce. Given todays pop, my guess is that he will be closing after a few more points. I employ the same approach with individual issues. With ETFs and indices i like to give myself a lil more cushion, while taking slightly more risk. His ATM spread will give him a better return on risk as the ATM spread will have a larger decrease of its value. ATM spreads are richer in delta's, hence they are a lil more directional. It all depends on your underlying prediction.

I think you are right, get out of harms way today with the pop. Right now the mids are:

120/125 = 1.40, profit of .20
125/130 = 1.60, profit of .60

rallymode · Jul 24, 2006

Quote from ryank:

120/125 = 1.40, profit of .20
125/130 = 1.60, profit of .60

I wonder what quotes you are looking at??

I can offset the 120/125 for .90 right now, for a profit of .70. Cache can close his 125/130 for 1.40 for a profit of .80.

ryank · Jul 24, 2006

Quote from rallymode:

I wonder what quotes you are looking at??

I can offset the 120/125 for .90 right now, for a profit of .70. Cache can close his 125/130 for 1.40 for a profit of .80.

My screen on TOS is showing 1.50 and 1.30 mids right now, I like your numbers better!

momoneythansens · Jul 24, 2006

Quote from ryank:

My screen on TOS is showing 1.50 and 1.30 mids right now, I like your numbers better!

Try again: View options chains as Verticals.
Information layouts choose: Mark and Net Change

120/125 Mark: .95, Net Change: -.65
125/130 Mark: 1.50, Net Change: -.50

Based on that the 120/125 spread made more money today.

MoMoney.

ryank · Jul 24, 2006

Quote from momoneythansens:

Try again: View options chains as Verticals.
Information layouts choose: Mark and Net Change

120/125 Mark: .95, Net Change: -.65
125/130 Mark: 1.50, Net Change: -.50

Based on that the 120/125 spread made more money today.

MoMoney.

I swear what I posted is what my screen said. I came home from work and pulled it up, now it matches what you posted. Kind of strange.

Neoxx · Jul 25, 2006

Quote from Cache Landing:

Looking for good setups in basic materials also. If anyone finds anything, drop me a line.

If your basic materials extends to materials/construction, take a look at LEN.

rallymode · Jul 25, 2006

Quote from rallymode:

Sold 125/120 Bull Puts for $1.6.

I am out at $.50 on this late day bounce. Cache, where do i send your commission?

What price are you holding for? i see resistance ahead at 140.