Wednesday, July 28, 2010

RE: [TheOptionClub.com] Re: Selecting Calendars

 

He has 11 on Calendars on the CBOE site.  Look at http://accordent.powerstream.net/008/00124/presentations/DS20080320/index.htm?i=151&u=13643&EventID=&trackingUrl=http%3A%2F%2Foiwebcasts%2Ecboe%2Ecom%2F%2Fportal%2Fservlets%2Ftrack%2Easp&trackingInterval=6&time=00:00:00&mediaUrl=&Ondemand=0&trackingID=&user=William%20Fletcher&email=wnfletcher@hotmail.com

on Guerrilla calendars - but there are others.

I like to do things kind of quantitatively, and to get a feel for what numbers are reasonable and what numbers are not.  For example, if I were to roll half my OEX position it would cost me commission, but the roll itself cuts the max profits, and presumably costs me premium.  This as a percentage of my investment is important, and I'd like to get a sense of this.


Bill



To: OptionClub@yahoogroups.com
From: gismeu@gmail.com
Date: Wed, 28 Jul 2010 03:22:01 -0400
Subject: Re: [TheOptionClub.com] Re: Selecting Calendars

 
Bill,

would you have a link or title or anything that would help me locate that video from Dan Sharidan, that you mentioned about that RUT adjustment?

Thanks heaps, gis


On Tue, Jul 20, 2010 at 3:44 PM, William Fletcher <wnfletcher@hotmail.com> wrote:


That is very useful.  I just put on (paper trading) an RTH and an OEX ATM calendar.  These are nice and big.  I watched Dan's webinar again where he adjusted a RUT trade through a 10% price drop.  Trading a small underlying would turn a profit into a loss under these conditions.

Bill

To: OptionClub@yahoogroups.com
From: robhansen5252@hotmail.com
Date: Tue, 20 Jul 2010 18:45:44 +0000
Subject: [TheOptionClub.com] Re: Selecting Calendars

 


Dan says that you should try to pay $1.00 a contract when trading these guerrilla calendars. Nevertheless, if you put 10 of these on, it will cost you $320 before commissions. If you are shooting for 20% profit, you should take the commissions into account, so add $60 to the projected 20% ($30 in and $30 out) and you should be looking to get out when the value of the spread is $444. So the spread started out at 0.32 and you want it to appreciate to 0.44. This is certainly attainable. Then you trade 100 of these next month! (Right).

RFH

--- In OptionClub@yahoogroups.com, "WilliamF" <wnfletcher@...> wrote:
>
> I have started to work on guerrilla calendars seriously. I have constructed a set of rules based on data from Sheridan and others.
> I was looking at an Aug Sep WAG ATM calendar. The 29s are 96 cents for the front, and $1.28 on the back (these are bid and ask). So doing it one time costs me $32 a contract. A ToS round trip for 4 contracts is $6 at $1.50 a contract.
>
> So if I set a target profit of 20% of my $32, that is $6.40. So after commissions I have a whole 40 cents left to spend on my celebration dinner!
>
> Yet this trade follows all the rules that I have looked at - volatility, skew, front vs back prices, minimum short premium etc.
>
> I suspect I need to trade a bigger underlying, but surely that should just be reflected in a "minimum cost per contract".
>
> Does anybody have enough practice on these to have a rule they feel comfortable with?
>
> Bill
>



The New Busy think 9 to 5 is a cute idea. Combine multiple calendars with Hotmail. Get busy.




Hotmail has tools for the New Busy. Search, chat and e-mail from your inbox. Learn more.

__._,_.___
Recent Activity:
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
MARKETPLACE

Stay on top of your group activity without leaving the page you're on - Get the Yahoo! Toolbar now.

Get great advice about dogs and cats. Visit the Dog & Cat Answers Center.

Hobbies & Activities Zone: Find others who share your passions! Explore new interests.

.

__,_._,___
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)