update on vol switch trade tue sep 26, signal was a caution buy 12 shares XIV, $93.50, $1,122 as of oct 4, holding 12 shares XIV, $99.60 EOD, total $1,195.20 starting value, $502.90 jan, 2017
going forward for this trade, looking at the results, i am not going to switch into vxx, just switch from xiv into cash
cash track trade track week ahead oct 9, things to possibly watch out for, No Ko Kim making threats Monday 9, USA holiday, brings out the anti-celebrators tue 10, conference organized by Jim Grant with Jim Chanos, Marc Cohodes, and other big dollar guys, could be sparks in some stocks or sectors wed 11, release of Fed minutes from last meeting thu 12, JPM e/r fri 13, could be anti-celebrators for Friday 13th fri 13, BAC, WFC, JBHT, e/r fri 13, option expiry week 2 for October
from optionprofitsdaily October 6, 2017 A Bear Call Spread in COST For COST, we could sell an October 20 $160 call for about $1.30 and buy an October 20 $162.50 call for about $0.70. This trade generates a credit of $60, which is the difference in the amount of premium for the call that is sold and the call that is bought multiplied by 100 since each contract covers 100 shares. That is the maximum potential profit on the trade. The maximum risk on the trade is $180. The risk is found by subtracting the difference in the strike prices ($250 or $2.50 time 100 since each contract covers 100 shares) and then subtracting the premium received ($70). This trade offers a return of about 39% for a holding period that is about two weeks. This is a significant return on the amount of money at risk. This trade delivers the maximum gain if COST is below $160 when the options expire, a likely event given the stock’s trend. Call spreads can be used to generate high returns on small amounts of capital several times a year, offering larger percentage gains for small investors willing to accept the risks of this strategy. Those risks, in dollar terms, are relatively small, about $160 for this trade in COST
update on vol switch trade signal is short vol with caution as of oct 13, holding 12 shares XIV, $107.84 EOD, total $1,294.08 starting value, $502.90 jan, 2017
cash track, trade track earnings of interest for week of Oct 23 Tue 24, MCD, GM, CAT, CMG Wed 25, KO, FCX, TSLA Thu 26, TWTR, F, MO, AMZN, BIDU, MSFT Fri 27, CVX, XOM, RCL
update on vol switch trade signal switched on Nov 2, to long vol with caution current plan is to go to cash as of Nov 2, sold 12 shares XIV, $111.03, total cash $1,332.36 starting value, $502.90 jan, 2017 this was a trial with a small amount of actual capital, I am planning to continue this trade
vol switch trade wanted to compare buy and hold to the switches we made if we had just did buy and hold on the XIV, $1110.30 vs $1,332.36, so we are ahead by $222.33