June Expiration how did it go for the sellers

Discussion in 'Options' started by darwin666, Jun 19, 2009.

  1. thought I would check with the regulars

    seems like June was a sellers dream. ha ha . after we have weathered APR-MAY.

    i got good premiums , however in the first three weeks and scalped smaller ones in the last 2 .

    sold 80% calls and 10% puts..hence I have to admit i am a bear, but mostly 10-20% OTM . never at the strike . and only when the stocks were rising /zooming.
  2. If those all are your positions in your worthles text attachment, that sure must be a PITA to keep track of.
  3. Gotta say, June was great. I pulled everything off on Tuesday, but only in order to get into July faster while the vols are low.
  4. I had 13 profitable putz credit spreads expire in June and one break even.... minus commission.
    I currently have 18 put spreads open for July.
    A few of the more recent ones were posted on the Share and Discuss Option Trades thread.
    If anyone is curious, I'll post all the active ones for July and/or Aug on request there.
    I will be sharing and discussing any new ones as well on that thread.
    I only post the trades initiated and shared in "real time".
    As a general rule, I don't see the value in sharing trades in hindsight.
    We are all briliant, strategic, and profitable traders.... in hindsight.
    Thus, if I'm unable to share and discuss a trade in "real time", I don't bother sharing or discussing them..... other than when requested to.

    Putz Master
  5. wartrace


    I did my first (real money) option trade in June. I sold a June 975 call & bought a June 985 for a 1000 dollar credit (SPX). I realize the risk (10,000) is not worth the reward but I placed it in the first week of June so there was little time premium left when I sold it.
    I felt it was a relatively safe bet & a good way to get my feet wet.
  6. wartrace


    Putz Master,
    Are you concerned about a broad market decline in the next few months?

    I would be nervous selling put spreads in this market personally. I am just a newbie so what do I know? :confused:

    Just curious about your outlook on the general market?
  7. I'm generally cautious between mid Sept and late Oct. But overall, I invest with the same attitude year round. That being, I like my stocks to have reasonable and tested L-T downside tech support per the 1 - 2 year chart, near the strikes I select.

    I like to have a reasonable otm safety cushion, in case the market gaps down suddenly.
    That otm cushion buys me time to close a trade down, before it does ITM.
    I also prefer narrow strike gaps of 1 - 2 points vs 5 points, as the more narrow strike gaps result in my credits holding their value better during volatile times. The more narrow gap helps to minimize the negative affects of a rise in VIX and IV during market/stock drops.

    As for being nervous selling put spreads in this market,..... it pays to be cautious in any market.
    I wish I had been even more cautious during the 50% market crash of 2007 - 2008.
    But generally speaking, I find stocks with the best prices and trades with a high probability of success,... by investing during times of uncertainty.
    To quote Buffet and others,.... "Be cautious when others are greedy, and be greedy when others are cautious."

    I'm fairly confident of my trades, and so I'm willing to share and discuss them with others in "real time", vs merely in hindsight. There may be some losses going foward, as none of us are perfect investors. But I don't fear an uncertain market.
    I fear over valued stocks. I fear over concentration in one stock or industry. I fear over concentrating my cash over just 1 - 2 months. I fear companies with excessive debt. I fear stocks trending down with no pretested tech support near my strikes. I fear no otm safety cushion and no tech support, as now there's no time to react to a sudden drop. I fear investors feeling bullish.

    The one thing I don't fear, is investors being nervous and cautious. That just tells me they have already sold. And that tells me prices are now more reasonable, better values, and safer than they used to be.
    I'd much rather be investing when prices are lower than when they are higher and everyones optimistic.
    The issue is not my strategy. The issue is my stock and strike selection, and how disciplined I am when it comes time to manage the risk.
    As a general rule, by managing the risk via the criteria I use, to set up the trade, I have less to manage after it become active.
    Finally note.... I rarely invest on up market days. Most of my trades take place when the market is dropping.
    I'm more interested in price values than fluctuating trends on this or that day.

    Putz Master
  8. wartrace


    Thanks for the response Putz Master. As a newbie I have a LOT to learn and am going to stay small for a while. One contract maximum and only four or five positions. I'm sure you remember your first trades, they are great learning experiences.
  9. While I cannot rationally endorse PutzMaster's methods, the real key to trading is getting 'your' method, as there are many which can lead to long run successes.
  10. More than putz master.

    #10     Jun 20, 2009