Vertical Spreads for Aggressive Growth

Discussion in 'Journals' started by Cache Landing, Jan 27, 2006.

  1. cnms2

    cnms2

    In my opinion "systematically writing", as well as any other fixed time periodical trading, presses you to probably enter at the wrong time. I believe that selling time this way is not successful in long run (negative expectancy). Options are better played directionally and / or on their IV.
     
    #241     Mar 23, 2006
  2. ChrisM

    ChrisM


    cnms2,

    I know what you mean. There are piles of materials, books and other resources stating that. I experienced that on my own back, wasting a lot of time.

    As about IV, agreed in some sense - but using them directionally is like using your PC for watching nice pictures only. It works, but you don`t take remaining 80% of their advantage.
     
    #242     Mar 23, 2006
  3. This is why I prefer the shorter term trades. I feel I can be more accurate this way when it comes to directional forecasting. This is also why I generally don't open both legs of an IC at the same time (negative expectancy). I prefer to time my entry into one leg and rely on my ability to foreast direction to leg into it on the other side. This of course all changes if I have a certain expectation regarding IV changes.
     
    #243     Mar 23, 2006
  4. I'll tell you what. I can't get filled to save my life today.:mad: I was very comfortable with the dip around 3:00. I was even giving up 0.15 but still no takers.
     
    #244     Mar 23, 2006
  5. Today's Action

    BTC 4 DELL APR 30p @ 0.40


    Year to Date P/L

    Account Value: $10,884.50

    YTD Gross P/L: 1,030.00

    YTD Commiss: 145.50

    YTD Net P/L: 884.50

    YTD % P/L: 8.8%


    Couldn't get filled on the SPX spread, so we'll see what happens tomorrow.
     
    #245     Mar 23, 2006
  6. Got filled on a DNA APR bull call this morning and a long BAC MAY put. I'm 0.15 under mid on SPX calls right now and can't get filled. If I'm gonna have to give up this much I might just have to jump over to SPY or XSP instead.
     
    #246     Mar 24, 2006
  7.  
    #247     Mar 24, 2006
  8.  
    #248     Mar 24, 2006
  9. Today's Action

    BTO 2 DNA APR 75/80c @ 4.25
    BTO 2 BAC MAY 50p @ 3.20


    Year to Date P/L

    Account Value: $10,875.50

    YTD Gross P/L: 1,030.00

    YTD Commiss: 154.50

    YTD Net P/L: 875.50

    YTD % P/L: 8.8%

    For those who are wondering why I opted for the debit spread on DNA. There was 0.10 difference in the synthetic mid, so I went with the higher of the two and got filled.:D
     
    #249     Mar 24, 2006
  10. sorry I didn't check to see you had a vertical on them...thx
     
    #250     Mar 24, 2006