I'm back after transfering everything around. Of course, I click to open the software and my internet connection is down this morning. Anyways back to my favorite stock, CSCO, I bought a ten lot of mar12s for .25 with ten more to still there. Also bidding 1.50 for the 12 calls. Short 1000 to scalp waiting to cove that. And just offered 10 of th 15 puts for 1.45
First day back, over all I should have been more patience and let things set up better. I wanted to buy the 12 puts as my protection, but to be honest, it wasn't at a very good price. A four lot of the 12 calls got hit which was good. I should have been bidding for those instead of the puts for .25. Even if I paid 1.55 for those it would have been better than paying .25 for the puts since I was anticipating a bounce anyway. Synthetically, I paid .22 for the puts as opposed to 1.53 for the calls. The put fiasco pisses me off too, I would have gotten filled at 1.45 which superficially was an average do but I wanted to sell stock against them in a rally. I ended up selling 5 at 1.45 later on. I sold 1000 shares of stock against my position which made me 200 deltas long for the rally. I then sold 700 shares at 14.07 which leaves me short 500 deltas for the morning. It looks like today's P/L was a negative $60. The account. I ended going with Millennium brokerage instead of IB for a couple of reasons. I put in a total of $35,000, $5000 more than the account was when I left Optionsxpress. $1000 of it is profit, so my starting capital is $34,000. However, I did fund the IB account as a backup with $5,000.
Optionsxpress is a great firm, however they couldn't give me the level of support I need for my trading.
As far as the Journal goes, it was really slow and I lost interest after not having anything to post for a couple of days. Things change, so now I'll keep try to keep track for a while. I traded 347 contracts on Tuesday. I was shocked myself. My position right now is long 84 of the May 15 calls, long 31 of July 17s, short 10 of the May 12s and short 1500 shares of stock. The May 15s were entered into at an excellent price. The risk/reward is definitely in my favor.
I have a secret part of my trading stategy which will be revealed right here, right now. I find that it is sometimes very effective to sleep in. Yeah, I know what your saying, doesn't it work the opposite way as well? Of course, I've lost lost money from not being there on the open for a nice big gap which promptly reversed itself. However, my plan today worked like a charm. When I did wake up today, csco was higher after selling off a little this morning. Basically, what I want is the position to play itself out. It was put on for excellent prices and would be more profitable this way with not a lot of risk. AH, it's tanking.
Screw the plan, I'm offering some of the 15s for .35. Vol popped this morning and this is a good price.