atticus' "ship it" vol trading journal

Discussion in 'Journals' started by atticus, Sep 5, 2012.

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  1. It's worth the risk. Bought the 640/675/710 Oct fly on AAPL from 10.20 risk (10.10 mid). Limits of account. Risking 2.50 if AAPL goes with an October date, but I'm simply not hearing it. My guess is that they'll need more time and the "4th Tuesday" has been persistant.

    Be careful with it, trade it small (do as I say, not as...)
     
    #501     Sep 26, 2012
  2. I see the R/R as 1 on Oct vs. Nov date at $2.5 in premium (i.e. 7.70 or 12.70) when date is announced.
     
    #502     Sep 26, 2012
  3. It's an easy 10.15 fill on calls here at 10.08 mid. That's my suggestion as I wouldn't want to hold the iron at the wings due to straddle delta as the NBBO will be maybe 40 cents wider on the iron. Simply a microstructure argument. An easier fill on the calls and it's sufficiently out from neutrality. Nice gains to body.
     
    #503     Sep 26, 2012
  4. Doobs789

    Doobs789

    Yeah definitely inherent vega risk there, but I would still take the later date. On the flip-side, I was looking at some Sep/Oct calendars for a short hold, but decided against it.

    I am in the fly at 10.10 risk (irons)
     
    #504     Sep 26, 2012
  5. Doobs789

    Doobs789

    Damn. Was just filled in the iron.
     
    #505     Sep 26, 2012
  6. More risk (by far) in the calendar.
     
    #506     Sep 26, 2012
  7. Ha, no worries. When trading a delta-fly like this I prefer to go with calls or puts on the COB.
     
    #507     Sep 26, 2012
  8. Doobs789

    Doobs789

    Yeah same here. I probably should've stuck it out with the call fly order, but got filled quickly in the iron. It's not that significant though.

    I'm looking at that GOOG 750 calendar here closer to 5.50. I just noticed that the 760 cal from yesterday is now over 18.
     
    #508     Sep 26, 2012
  9. Yeah, shouldn't have gotten shaken out of that. It's difficult when you're trading to limits.
     
    #509     Sep 26, 2012
  10. Doobs789

    Doobs789

    Looking to get long some deltas. I think we go up from here. Taking a shot, going long ES at 1432.
     
    #510     Sep 26, 2012
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