You're welcome - hope it is of use. 1. I use several, and build a composite buy or sell based on Bollinger Bands, Moving Averages and Stochastics to confirm that a trend has finished. 2. I use IB. I think I might have answered the second part on the other thread where you and others asked questions. Posts 77 and 78, here: https://www.elitetrader.com/et/threads/is-buying-options-a-mugs-game.332249/page-8#post-4860135
Sure, I'll just pop round to your house and put the trades on for you if you like! Afterwards, I'll wash your car and mow your lawn too! For me, the 'secret sauce' that you refer to took 20 years of studying, modelling, backtesting, iterating and repeating to learn how to make a profit out of trading options. You need to understand what you're trying to achieve, then find a way of doing it that suits your financial situation, your professional life and your personal life. What works for you might make more money than what works for me. That you have all the information that you need (here and in the other thread, referenced yesterday) to do what I do, and you haven't joined up the dots to do it, suggests to me that you should perhaps be doing something else.
Trades from last week follow. Sold FTSE Puts at a profit following a reversal on Tuesday. Security / Ticker: FTSE Open Trade Date: 09 April 2019 Trade: Sell to Close Expiry Date: 17 May 2019 At the Money / Out of the Money: AtM Exercise Price: 7,400 Direction: Call Opening Price: 98.4 Close Trade Date: 14 May 2019 Closing Price: 147.7 Roundtrip P&L: 50.1% Security / Ticker: FTSE Open Trade Date: 09 April 2019 Trade: Sell to Close Expiry Date: 17 May 2019 At the Money / Out of the Money: OotM Exercise Price: 7,150 Direction: Call Opening Price: 20.8 Close Trade Date: 14 May 2019 Closing Price: 3.6 Roundtrip P&L: -82.5% And bought Calls: Security / Ticker: FTSE Open Trade Date: 14 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: AtM Exercise Price: 7,275 Direction: Call Opening Price: 101.1 Security / Ticker: FTSE Open Trade Date: 15 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: OotM Exercise Price: 7,525 Direction: Call Opening Price: 12.2
I got DAX wrong! Closed out May Puts at a loss. Security / Ticker: DAX Open Trade Date: 10 April 2019 Trade: Sell to Close Expiry Date: 17 May 2019 At the Money / Out of the Money: AtM Exercise Price: 11,800 Direction: Put Opening Price: 192.2 Close Trade Date: 15 May 2019 Closing Price: 0.7 Roundtrip P&L: -99.6% Security / Ticker: DAX Open Trade Date: 10 April 2019 Trade: Sell to Close Expiry Date: 17 May 2019 At the Money / Out of the Money: OotM Exercise Price: 11,200 Direction: Put Opening Price: 26.8 Close Trade Date: 15 May 2019 Closing Price: 1.0 Roundtrip P&L: -96.3% NB Not that it changes anything of significance but I noticed a typo when entering this trade. This version is correct. Bought Calls: Security / Ticker: DAX Open Trade Date: 15 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: AtM Exercise Price: 12,100 Direction: Call Opening Price: 225.3 Security / Ticker: DAX Open Trade Date: 15 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: OotM Exercise Price: 12,750 Direction: Call Opening Price: 18.1
Sold S&P 500 Puts at a profit: Security / Ticker: ES Open Trade Date: 25 April 2019 Trade: Sell to Close Expiry Date: 21 June 2019 At the Money / Out of the Money: AtM Exercise Price: 2,920 Direction: Put Opening Price: 51.3 Close Trade Date: 16 May 2019 Closing Price: 74.1 Roundtrip P&L: 44.5% Security / Ticker: ES Open Trade Date: 25 April 2019 Trade: Sell to Close Expiry Date: 21 June 2019 At the Money / Out of the Money: OotM Exercise Price: 2,800 Direction: Put Opening Price: 9.6 Close Trade Date: 16 May 2019 Closing Price: 19.2 Roundtrip P&L: 100.4% Also closed Put side of Straddle ata profit, leaving 2940 Calls open. Security / Ticker: ES Open Trade Date: 29 April 2019 Trade: Sell to Close Expiry Date: 21 June 2019 At the Money / Out of the Money: AtM Exercise Price: 2,940 Direction: Straddle Opening Price: 50.1 Close Trade Date: 16 May 2019 Closing Price: 87.6 Roundtrip P&L: 74.9% Before buying Calls: Security / Ticker: ES Open Trade Date: 16 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: AtM Exercise Price: 2,880 Direction: Call Opening Price: 46.7 Security / Ticker: ES Open Trade Date: 16 May 2019 Trade: Buy to Open Expiry Date: 21 June 2019 At the Money / Out of the Money: OotM Exercise Price: 3,000 Direction: Call Opening Price: 3.3
Nikkei 225 Puts expired with an aggregate net profit. Security / Ticker: N225 Open Trade Date: 08 April 2019 Trade: Sell to Close Expiry Date: 09 May 2019 At the Money / Out of the Money: AtM Exercise Price: 21,750 Direction: Put Opening Price: 348.7 Close Trade Date: 09 May 2019 Closing Price: 478.1 Roundtrip P&L: 37.1% Security / Ticker: N225 Open Trade Date: 08 April 2019 Trade: Sell to Close Expiry Date: 09 May 2019 At the Money / Out of the Money: OotM Exercise Price: 20,625 Direction: Put Opening Price: 41.6 Close Trade Date: 09 May 2019 Closing Price: - Roundtrip P&L: -100.0%
Following a Bullish reversal on Thursday, closed the Put side of the June Straddle at a small profit and initiated long position by buying calls: Security / Ticker: N225 Open Trade Date: 07 May 2019 Trade: Sell to Close Expiry Date: 13 June 2019 At the Money / Out of the Money: AtM Exercise Price: 21,625 Direction: Straddle Opening Price: 549.7 Close Trade Date: 16 May 2019 Closing Price: 622.0 Roundtrip P&L: 13.1% Security / Ticker: N225 Open Trade Date: 16 May 2019 Trade: Sell to Close Expiry Date: 11 July 2019 At the Money / Out of the Money: AtM Exercise Price: 21,375 Direction: Call Opening Price: 510.2 Security / Ticker: N225 Open Trade Date: 16 May 2019 Trade: Sell to Close Expiry Date: 11 July 2019 At the Money / Out of the Money: OotM Exercise Price: 22,375 Direction: Call Opening Price: 186.4
On each reversal, I sold Bull Put spreads at various expiries through 2019, for immediate cash credit. Not sure how useful it is to show them here, but can do so if anybody is interested.
Yes, please do. I'm using options myself as a directional trade. Just buying calls or puts. But I'm very interested in the mechanics of those multi-legged positions. JP