How long $3000 will last option trading

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

  1. skanan

    skanan

    Bought back ADCT for $1.65, ADCT Mark 22.75.

    Reason, ADCT got downgrade, my view does not change but I don't want to fight it. Also, the whole trade start being -Theta due to the 25 put was way in the money, and 22.5 was ATM.


    Lost $65 on this one. So, the total profit so far is $600-$65 = $535

     
    #51     Dec 21, 2005
  2. Good job.

    I see you've been concentrating on short put spreads. Any reason for doing so?

    MoMoney.

     
    #52     Dec 21, 2005
  3. skanan

    skanan

    Thanks.

    If they were equity, I'm familiar with them and I took directional bet on them. For SPY and SPX, I listended to Coach Phil and you guys on SPX spread forum. The consensus seems to be uptrend so I only sell put spread.

    For this month on spy, I did a lot more diag put spread than vertical.

    I enjoyed reading your post over there.
     
    #53     Dec 21, 2005
  4. skanan

    skanan

    SOLD -1 VERTICAL GOOG 100 JAN 06 400/390 PUT @1.35 ISE, GOOG MARK 424.32

    Goog took a good drop today around $6.
    I think goog support is around $400. This is low reward high probability and high risk trade.
     
    #54     Dec 27, 2005
  5. skanan

    skanan

    SOLD -1 VERTICAL SPY 100 JAN 06 125/124 PUT @.25 ISE, SPY MARK 125.78

    Total:

    Delta 49 Gamma -20.36, Theta 6.87, Vega 15.5
     
    #55     Dec 28, 2005
  6. cnms2

    cnms2

    How did those greeks influenced your decision to open this position? Or how do you plan to use them?
     
    #56     Dec 28, 2005
  7. Those greeks must be for all positions you have on SPY right?

    You have two PUT verticals and a PUT calendar, is that correct? Anything else?

    Just want to follow along.

    MoMoney.

     
    #57     Dec 28, 2005
  8. So that's $135 reward on $865 risk. What is your stop loss going to be on this?

    I don't think it's as high probability as it looks...but I'm sure you are familiar with GOOGs vol. I did a similar PUT spread last month after the downgrade circa 28/11 and it worked out nicely. Hope you have the same success!

    Good luck.

    MoMoney.

     
    #58     Dec 28, 2005
  9. skanan

    skanan

    Mo

    Yes, those greeks are all my positions. I opened a new position so many times it's difficult to keep track. I applied TOS portfolio management style to just look at those greeks:

    After all of spy trades, here is my positions:

    At TOS
    +1 Jan 123 Put
    +1 Jan 124 Put
    -2 Jan 125 Put
    -1 Jan 129 Call
    +1 Jan 130 Call

    At IB
    -1 jan 122 Put, +1 Feb 124 Put
    -1 Jan 123 Put, +1 Jan 121 Put
    -1 Jan 126 Put, +1 Mar 126 Put
    -1 Jan 124 Put, +1 Feb 124 Put
    -1 Jan 124 Put, +1 Feb 123 Put

    In short, at TOS, I have one IC and one vertical credit put spread. At IB, I have some diags, calendars, and one vertical credit put spread.

    I did not put these things out because I was waiting for a virtual portfolio from new version of TOS software. It should let me keep tracks of these easier.
     
    #59     Dec 29, 2005
  10. skanan

    skanan

    Mo,

    I don't have stop loss. This trade is set to run till it end or I might take it out in last week. This is probably my 10th goog trade since the stock was $180. Had I simply bought stock, I could have earned more than doing all credit spreads.

    Thanks!

     
    #60     Dec 29, 2005