zack my original sto short put was on 12oct09 strike 58 for 1.02
i always roll my my leap put if the stock is increasing. i try to do it when the underlying isat the strike price of the leap. and zack please listen carefully. what i have in the dls strategy paper and what i posted about short puts is just a crude outline. it is not meant to followed like a bible. option trading is far from a science and things change. i don't follow my positions on a daily basis and sometimes not even on a weekly basis. please take my papers as a mere outline that you can use to build a strategy tailored to your trading skills, time, risk and patience. my trades are pasted below from optionsxpress
Account Activity
Date Action Qty Symbol/Description Price Net Amount
03/08/2010 Sell To Close 20 IWM Jan12 60 Put $6.70 $13,369.61
03/08/2010 Buy To Open 20 IWM Jan12 70 Put $11.46 ($22,950.22)
03/03/2010 Sell To Open 16 IWM Apr10 65 Put $1.81 $2,873.25
03/03/2010 Buy To Close 16 IWM Mar10 60 Put $0.15 ($262.70)
03/03/2010 Buy To Close 1 IWM Mar10 60 Put $0.15 ($15.01)
03/03/2010 Sell To Open 1 IWM Apr10 65 Put $1.81 $180.99
03/03/2010 Buy To Close 3 IWM Mar10 60 Put $0.15 ($52.51)
03/03/2010 Sell To Open 3 IWM Apr10 65 Put $1.81 $535.49
02/23/2010 Sell To Open 20 IWM Mar10 60 Put $0.72 $1,409.70
02/21/2010 Buy To Close 20 EXPIRED IWM FEB10 60 PUT $0.00 $0.00
12/23/2009 Sell To Open 5 IWM Feb10 60 Put $1.54 $762.46
12/23/2009 Sell To Open 15 IWM Feb10 60 Put $1.54 $2,287.38
12/20/2009 Buy To Close 20 EXPIRED IWM DEC 60 PUT (.DIWXH) $0.00 $0.00
11/23/2009 Sell To Open 17 IWM DEC 60 Put (.DIWXH) $1.56 $2,636.82
11/23/2009 Sell To Open 3 IWM DEC 60 Put (.DIWXH) $1.56 $453.02
11/22/2009 Buy To Close 20 EXPIRED IWM NOV 58 PUT (.DIWWF) $0.00 $0.00
10/28/2009 Buy To Open 20 IWM Jan12 60 Put $12.05 ($24,130.08)
10/12/2009 Sell To Open 20 IWM NOV 58 Put (.DIWWF) $1.02 $2,009.86--- In ConservativeOptionS
>
> Drjor,
>
> I tried to following your trade, here is the price on yahoo finance for iwm:
>
> Date Open High Low Close Volume Adj Close*
> 12-Oct-09 61.79 62.03 61.14 61.43 26,895,500 61.18
> 28-Oct-09 58.59 58.80 56.59 56.83 84,951,000 56.60
>
> so I guess you did your initial sto on 10/28/10, not 10/12/10 ?
>
> Another question, when do you usually roll up your DITM leap put ? i thought you do it when it 'at the money' so you get the most time value. But I saw you waited until iwm hit $65,$5 out of money.
>
> By the way, will you roll down you leap when iwm goes down $10 after you initiated the trade?
>
> Thanks,
>
> Zack
>
>
> --- In ConservativeOptionS
> >
> > zack,,,,don'
> >
> > the leap long put....iwm was at 58.05.....there is no reason for buying the protection 16 days after short put.....i just didn't get around to buying the put....no logical reason...drjoe
> >
> > --- In ConservativeOptionS
> > >
> > > Drjor,
> > >
> > > Thanks for posting the details, I got 2 questions:
> > >
> > > 1. > 10/12/09 sto, 20k's, short put, @1.02 strike 58 11/20/09 expiration
> > > >expired
> > >
> > > what's price of IWM at that time ?
> > >
> > >
> > > 2. > 10/28/09 bto, 20k's long put @ - 12.05 strike 60 1/20/12 expiration
> > >
> > > Why did this trade was initiated 16 days after the sto ? what's the IWM price at that time made you do this ?
> > >
> > > Thanks
> > >
> > > Zack
> > >
> > > --- In ConservativeOptionS
> > > >
> > > > i would like to an actual real-time example of what i do with my diagonal put spreads.
> > > >
> > > > 10/12/09 sto, 20k's, short put, @1.02 strike 58 11/20/09 expiration
> > > > expired
> > > >
> > > > 11/23/09 sto, 20k's, short put, @1.56 strike 60 12/18/09 expiration
> > > > expired
> > > >
> > > > 12/23/09 sto, 20k's, short put, @1.54 strike 60 2/19/10 expiration
> > > > expired
> > > >
> > > > 2/23/10 sto, 20k's, short put, @ 0.72 strike 60 3/19/10 expiration
> > > >
> > > > 3/3/10 btc, 20k's, short put, @ - 0.15
> > > >
> > > > 3/3/10 sto, 20k's, short put @ 1.81 strike 65 4/16/10 expiration
> > > >
> > > > total premiums collected to date = 6.50
> > > >
> > > > PROTECTION
> > > > 10/28/09 bto, 20k's long put @ - 12.05 strike 60 1/20/12 expiration
> > > > since i am obligated to purhase stock at 60 strike (initial short put strike) and i paid 12.05 for protection my net obligation is 60+12.05 or 72.05.....but guaranteed 60 (long put strike) or a total of 12.05 at risk which is 20.1% (iwm was at 58.05) a lot higher at risk that i usually do but i felt the market was in an uptrend
> > > >
> > > > now, what should i do? i will on monday if markets open favorably.
> > > >
> > > > well let's consider this:
> > > >
> > > > 3/8/10 stc, 20k's current long put strike 60 for 6.60 and then bto, long put strike 70 for 11.64.....this adds (11.64-6.60) or 5.04 to my net obligation/investme
> > > >
> > > > however, i received a total of 6.50 in premiums from selling short calls to date...so 7.09-6.50 or 0.59 is now at risk....that is 0.59/70 or 0.84% essentially risk free....
> > > >
> > > > i will have until jan12 or 22 months to collect short put premiums, if assigned, sell calls and if they are assigned also go back to selling short puts....all without virtually no risk at all....drjoe
> > > >
> > > > i will let you know what i do......
> > > >
> > >
> >
>
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