Friday, July 10, 2009

Re: [TheOptionClub.com] ? [1 Attachment



Vikas,

Thanks for the clarification.

You're showing the closing order that reflects a loss from the old position in addition to the new IC.

I am a bit unclear about the term "rolling". I'll have to speak with a TOS broker regarding this.

Thanks!!

Carmelo




-----Original Message-----
From: Vikas Basantani <vikas.basantani@gmail.com>
To: OptionClub@yahoogroups.com
Sent: Fri, Jul 10, 2009 7:38 am
Subject: Re: [TheOptionClub.com] ? [1 Attachment]

[Attachment(s) from Vikas Basantani included below]

Hi Carmelo,

Looking at your screenshot, there are couple of mistakes that I can see - your original IC is not selected at all, instead of sellling 390/400 put spread, you appear to be buying it...

Please have a look at the attached screenshot that has your original IC and the adjustments I had suggested.

Hope this helps.

Cheers Vikas




On Fri, Jul 10, 2009 at 2:42 AM, <carmelo5791@aol.com> wrote:
[Attachment(s) from carmelo5791@aol.com included below]

Thanks Vikas!

If you could, have a look at the attached image of the proposed adjustment. It doesn't look right to me. Please let me know what you think.

Thanks!

Carmelo

-----Original Message-----
From: Vikas Basantani <vikas.basantani@gmail.com>
To: OptionClub@yahoogroups.com
Sent: Thu, Jul 9, 2009 7:39 am
Subject: Re: [TheOptionClub.com] ?



Hi Carmelo, with more than 6 weeks to August expiration and a recent pump in volatility, sure there is some stuff you may consider...

First of all, close the call side as 580/590 call vertical is trading at 0.1/0.25. Then, consider rolling down the put spreads from 440/450 to let's say 390/400 - should be possible to do this at around 1.5 debit when the market opens today... Finally consider selling call spreads which are a bit closer to the money, let's say, 540/550 or 550/560. Depending on your own market outlook, you can choose the strikes you like - you can even have more contracts on one side than the other... But don't forget to look at the overall risk/reward scenario before going ahead with any adjustment...

Good luck!!!

Cheers Vikas


 


On Thu, Jul 9, 2009 at 3:59 AM, cguy444 <carmelo5791@aol.com> wrote:


A couple of things:

I'd appreciate some suggestions on fixing a trade.

RUT Aug 09 IC
440P/450P/580C/590C
1.95 credit

Also...I got killed today on an AMGN IC. One trade lost all profits (and created a net loss) since going live (a few months of work). Hmmm...should I not use equities for IC trades?

Thanks,

Carmelo



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