My option trades

Discussion in 'Options' started by ryanpatrick, Nov 21, 2011.


  1. ...its this thu, 12th, here is a good place to get e/r info...
    http://www.earningswhispers.com/stocks.asp?symbol=GOOG

    ...also your broker should have the info...

    ....check yahoo....

    ...briefing is good, but i think you have to register now...

    ....and many more....

    ...i think this is one of the few times goog has not reported in opx week?...i thought it was next week...
     
    #1351     Apr 9, 2012
  2. There's nothing to back engineer lol. Just see what I originally posted. The other thread discusses it too...

    Very similar to a calendar that atticus has mentioned to You before. Except the strikes are a bit further apart. And then i add the straddle to save my ass from large mad moves...

    Very simple actually..
     
    #1352     Apr 9, 2012
  3. BABU

    Forgive an ignorant old man here.

    Double diagonal

    middle of the night prices here with GOOG

    Sold the weekly 640 c at $16.70
    Buy the April 635 C at $20.50

    Okay I´ve got this is a diagonal CALENDAR.

    Sold the week 625 P at $17.70
    Buy the April 630 P at $21.80

    Intent is to capitalize on volatility premium change, and time decay. Might be a bit of small time decay? Mostly a volatility play as I read it.

    You seem to have a bias to the upside?

    Results in two days, Thursday.
    _______________________________

    Google is chosen because it has big swings on Earnings reports?

    Goog is at 630.84

    You will keep the sold side on the winning side. Lose something on the other side. Gambling you will keep more than you lose with a very big premium move on one side.
    ________________________________

    Darn, for the life of me, I cannot remember if the spread is supposed to expand, or contract? It was clear in my mind a week ago, now I cannot picture it at all.
    __________________________________
     
    #1353     Apr 10, 2012
  4. Dan Shirly - Nice article.

    On paper then.
    _________________________

    Reverse Iron Condor in the weekly

    Buy 625 PUT at $17.70
    Sell 620 PUT at $15.10

    Spread - $2.60

    Buy 635 Call at $18.90
    Sell 640 Call at $16.30

    Spread - $2.60

    GOOG the morning of the 10th., Tuesday. Waiting for Thursday the 12th

    Debit: - $5200 10 contracts
     
    #1355     Apr 10, 2012
  5. Conparing the QQQ ATR to the SPY ATR. Can´t get those moves that Jeff talks about. Maybe if I can build back some cash first will switch. I´m at my lowest balance in a year of learning trading.

    Jeff talks about 36% 50% with this low VIX. Most of the QQQ is moving around .18cents to 24 cents with these ATR´s. Usually after commissions around 5%

    Just looked up Jeffs system again.

    Maximum loss - 20%, or if he doubled up, then - 40%. Will give me some ideas, playing with it.
     
    #1356     Apr 10, 2012
  6. others have mentioned the OptionsOracle software.
    I've been using it, and
    it seems to be decent for comparing different options.

    It appears to be non supported, or non updated.
    Is there anything comparable to it, or better,
    pay or free?

    thanks
    marc
     
    #1357     Apr 10, 2012
  7. Seems like the whole market is just waiting for GOOGLE to shake things up on Thursday? Very dull trading moves.

    I´m curious as to how the reverse iron condor works? Wonder how it works on Earnings reports that stocks only move 2%? Lot of those stock earnings are less than 2%.

    Been thinking about the Calendar again. I guess I expect the spread to narrow for buy back? Just thinking and guessing.

    Bit fresher this morning, since I watched the sun come up over the barrier reef a mile away, from the end of the pier. Nice with calm, fish feeding in the shallows. Swung a cement block around on the verhanda a bit, to loosen up the muscles and get oxygen to the important parts.
     
    #1358     Apr 10, 2012
  8. This is a poor use of the reverse iron condor. The premiums are too high, you have to go further OTM where you are paying less than $5 for the whole thing. The way you make money on this trade is when GOOG ends up outside your furthest strikes and you collect the $5 on that side. With strikes this close to ATM at best you lose $20 per contract, worst case you lose all $520.

    Simple math:
    if GOOG is below $620 at expiration. calls worthless. put's worth $500. Lost $20.
    Goes from losing $20 to losing $520 in between $620-625 and $635-$640.
    if GOOG is above $640. puts worthless, calls worth $500. Lose $20.

    Now if you move the wings to $610 and $650 like he said, you only pay $460 per contract and at least have a chance to make $40. Even better rewards using wider spreads like $10 differences in strike price and/or further OTM.
     
    #1359     Apr 10, 2012
  9. Falcon this is when you should notice vega increasing, all of a sudden people feel "risk" in the market, this is that balloon you are always going on about. You should be watching straddle prices here. So for example at the height of the panic you sell a straddle with positive delta you should do alright. Try not to overanalyze....:)
     
    #1360     Apr 10, 2012