How long $3000 will last option trading

Discussion in 'Journals' started by skanan, Nov 18, 2005.

  1. skanan

    skanan

    Mo,

    Thanks for your kind words. I need to make my p&l graph smooth.

    Since yesterday and today (2/2/06 - 2/3/06), I tried to place order to sell SPX put spread due to big drops (more than 10 points) on IB but had no luck getting filled.

    I was shooting for 1180/1190 or 1185/1195 put spread and gave up about 10 cents from the mid. I changed price couple times and I guess will have to pay fees on that.

    Also I have problem losing quotes couple times a week. Finally, I gave IB a call and they provided me the work around by logout and relogin again.

    I could have losted about $150 less on goog but because the system did not give me the quote and the stock dropped fast

    I'm moving my non-IRA account to TOS soon.
     
    #111     Feb 4, 2006
  2. skanan

    skanan

    02/03/06

    SOLD -1 IRON CONDOR SPY 100 MAR 06 129/130/121/120 CALL/PUT @.45, SPY MARK 127.12

    I'm more concern on downside rather than upside for this IC.


    SOLD -1 VERTICAL TYC 100 MAR 06 25/27.5 CALL @.65, TYC MARK 25.03

    TYC just had earning release and it was not good. I waited a bit for stock to bounce back higher than $25 to sell this call spread.
     
    #112     Feb 6, 2006
  3. nlslax

    nlslax

    Good trade. I too like the SPY/IWM/QQQQ 1pt spreads. Also better fills than SPX or RUT. Went to a TOS seminar recently. I have OX now and I feel like I'm trading blind. Gonna switch soon.
     
    #113     Feb 6, 2006
  4. I don't trade the SPX due to slippage/fill issues. However, there are other drawbacks with SPY/IWM/QQQQ 1pt spreads - namely commission. Also, when comparing fills, are you really getting better fills when taking index size into account? You might find you are not.

    More here for an illustration of commission issues:
    http://www.elitetrader.com/vb/showthread.php?s=&postid=939138#post939138

    MoMoney.

     
    #114     Feb 6, 2006
  5. nlslax

    nlslax

    TY MoMoney,
    True, it isn't simple to get fills even on SPY vs SPX, but ISE has been more cooperative to me than CBOE. Will look at the commission issue you brought up.

    Thanks for the input.
     
    #115     Feb 6, 2006
  6. skanan

    skanan

    BOT +1 VERTICAL VLO 100 FEB 06 52.5/50 PUT @.10 ISE, VLO MARK 59.34

    This was sold for $0.55 about a month ago so I booked $45 profit.

    SOLD -1 VERTICAL VLO 100 MAR 06 55/52.5 PUT @.55 ISE, VLO MARK 59.51
     
    #116     Feb 6, 2006
  7. nlslax

    nlslax

    Good job on the Feb's. I looked at them myself but didn't pull the trigger. If you have some time, take a look at CRDN and the FOTM March strikes. It may be too extended, but was wondering what you thought.
     
    #117     Feb 6, 2006
  8. skanan

    skanan

    Thanks! I traded crdn a lot last year but decided to stop when the previous CEO retired. It seems to come back strong. The business week investor service rated this stock well in both fundamental and technical signal.

    I would wait for the stock to pull back to trade. If I have to trade it now (stock at $58), I would sell Mar 55/50 put spread for $1.35.

     
    #118     Feb 7, 2006
  9. nlslax

    nlslax

    Thanks Skanan.
    I've been looking at TGT. Not a historically volatile stock, but the OTM options are juicy.
    Have a good trading day.
     
    #119     Feb 7, 2006
  10. skanan

    skanan

    Thanks for pointing that out. You are right! The March 50 or 52.50 has good premium and there is good support around 52.50 and even stronger one on 50. This one fits my trading style too. I'm looking forward to trade it soon. Today I am trying to get either OIH or THE filled.

    My OIH would be IC 125/130/160/165 but legging in. Let's see what happend.

     
    #120     Feb 7, 2006