I actually have no credits current I went short on a few around 930 on spy. 48 puts STT. 39 put QLD. Put on SSO 35 34 puts today when it hit the high from yesterday that it couldn't break. Went on INYS against the person playing 14000 put contracts and went with 35 calls.
If anyone wants to take a look at a chart that looks big to the upside for an earnings place is PNRA clear support 48.50 put on 50 calls and 55 calls for august. Let me know what everyone thinks on this one target 60 buy end of july.
Sent via BlackBerry by AT&T
From: rvd
Date: Thu, 9 Jul 2009 19:37:23 -0700 (PDT)
To: <OptionClub@yahoogro
Subject: Re: [TheOptionClub.
Keep in mind that the IV is still relatively high so selling premium is still a good thing to do.
You will never be able to sell a lot of premium without the risk of movement - by definition.
They are of course directly related.
If you can do verticals profitably than do that.
All my testing shows that verticals are far better than single long calls or puts for leverage.
The question remains whether you will always be neutral when the IV spikes are going to happen?
Just one Fed reserve surprise can wipe out your current trade. It happened to me in less than 5 minutes.
From: "zodiespk@yahoo.com" <zodiespk@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Thursday, July 9, 2009 1:59:11 PM
Subject: Re: [TheOptionClub.com] ?
Understood. Just this market changes direction so quickly intra day it could fly through the clouds then hit the floor and it is tough to keep it in a range. I would rather do one sided credit spreads which have been working really well using channels and support resistance off previous moves.
From: rvd
Date: Thu, 9 Jul 2009 11:47:17 -0700 (PDT)
To: <OptionClub@yahoogroups.com>
Subject: Re: [TheOptionClub.com ] ?
You will never be able to sell a lot of premium without the risk of movement - by definition.
They are of course directly related.
If you can do verticals profitably than do that.
All my testing shows that verticals are far better than single long calls or puts for leverage.
The question remains whether you will always be neutral when the IV spikes are going to happen?
Just one Fed reserve surprise can wipe out your current trade. It happened to me in less than 5 minutes.
From: "zodiespk@yahoo.
To: OptionClub@yahoogro
Sent: Thursday, July 9, 2009 1:59:11 PM
Subject: Re: [TheOptionClub.
Understood. Just this market changes direction so quickly intra day it could fly through the clouds then hit the floor and it is tough to keep it in a range. I would rather do one sided credit spreads which have been working really well using channels and support resistance off previous moves.
Sent via BlackBerry by AT&T
From: rvd
Date: Thu, 9 Jul 2009 11:47:17 -0700 (PDT)
To: <OptionClub@yahoogro
Subject: Re: [TheOptionClub.
Depending on how you trade, stocks like AMGN that can move 30% overnight dont give you much time to adjust.
I just put an IC on AMGN a few minutes ago to test my theory that after big moves, stocks tend to digest and go sideways for a while.
I will adjust the IC if AMGN resumes its new upward trend (that began overnight of course).
SPY is what I trade mostly because you dont normally see 15% - 30% overnight moves with it.
When I really know what Im doing, Ill trade AAPL and CME, etc.
Its also a good idea to give up a small chunk of potential profit to buy some cheap protection.
If you had a cheap OTM call on AMGN, you could have taken the profit from it yesterday and bought a nice BWB.
Ross
From: Vikas Basantani <vikas.basantani@ gmail.com>
To: OptionClub@yahoogro ups.com
Sent: Thursday, July 9, 2009 6:39:36 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
I just put an IC on AMGN a few minutes ago to test my theory that after big moves, stocks tend to digest and go sideways for a while.
I will adjust the IC if AMGN resumes its new upward trend (that began overnight of course).
SPY is what I trade mostly because you dont normally see 15% - 30% overnight moves with it.
When I really know what Im doing, Ill trade AAPL and CME, etc.
Its also a good idea to give up a small chunk of potential profit to buy some cheap protection.
If you had a cheap OTM call on AMGN, you could have taken the profit from it yesterday and bought a nice BWB.
Ross
From: Vikas Basantani <vikas.basantani@ gmail.com>
To: OptionClub@yahoogro ups.com
Sent: Thursday, July 9, 2009 6:39:36 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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