Big sale today for those in need.

Discussion in 'Options' started by KINGOFSHORTS, Jun 25, 2010.

  1. I sold a big chunk of SPY 108 puts (Aug) for 4.91

    Need to help those in need of insurance.

    Got a large batch of short SPY 109 calls that expire july. Nice returns on those.

    Closed out a shit load of GE calls as well for a nice return.

    Took a Casino bet on long GE 18 Augusts, for 8 cents.

    Lets see, what happens.

    Thanks Obama. :)
  2. Bought back All my short puts sold. These and then some, Bird in hand worth two in the bush.

    And it looks like the two in the bush might not be around for too long.

    Gonna wait for the next panic and start selling puts again when people are scared and need insurance.

    The Casino GE bet still has time, lets see what happens on the 16th :) when they report.
  3. What was the drawdown on the SPY puts?
  4. Paper trades require zero haircut.
  5. Look at the charts those puts went deep in the money for a while.

    But that is no issue, To sail the oceans and get to your destination you have to cross choppy waters.

    If you do not have the capacity to wait out the Squalls on the way to your destination you should not be in this business.

    Sell high buy low.

    Waiting for VIX 30 to go back and look at selling again.

    Although it looks like my GE casino call buy will be a wash :)
  6. Well. Those July 109 calls expired worthless it looks to be :)
  7. ...and you hedged those short calls with????
  8. With the underlying from my inventory.
  9. I must be missing something.
    I've been sittin' and thinkin' and sh*ttin' and stinkin' on this, and all I can come up with is that you're selling covered calls. Which would make all this merely pedestrian, and, possibly, money-losing.
    So, what am I missing?
  10. It is a Covered short Strangle** :) I prefer the more pedestrian way of earning my living I am retired from the rough and tumble days of yore at wallstreet. I Wait for my setups, do my work pencil and paper and work out my routine. It does require patience and an eye for details of course.

    And I do provide a service, people need insurance. :)

    I leave the excitement of the daily grind of scalping pennies on leverage to the young lions.

    ** Depending, I might sell more puts than calls, or closer to the money puts or calls sometimes ITM or ATM, extra month in front or so on one side or the other etc.. All depends on how things look.
    #10     Jul 16, 2010