TSLA
SELL 13 SEP 155.0 PUT $1.46
BUY 13 SEP 150.0 PUT $0.85
Days To Exp: 7
Credit: $0.61
NFLX
SELL 13 SEP 270.0 PUT $1.06
BUY 13 SEP 265.0 PUT $0.60
Days To Exp: 7
Credit: $0.45
Friday, August 30, 2013
Bull-Put Credit Spread
SELL 13 SEP 155.0 PUT $1.46
BUY 13 SEP 150.0 PUT $0.85
Days To Exp: 7
Credit: $0.61
SELL 13 SEP 270.0 PUT $1.06
BUY 13 SEP 265.0 PUT $0.60
Days To Exp: 7
Credit: $0.45
Thursday, August 29, 2013
HLF Bull Put Credit Spread
Bull put credit spread
SELL HLF SEP13 49 PUT
BUY HLF SEP13 45 PUT
Net Credit: $2.435
Tuesday, August 27, 2013
TSLA Bull-Put Credit Spread
TSLA
| Trade Details | |||
| Sell 1 TSLA 2013 30-AUG 155.00 PUT | |||
| Buy 1 TSLA 2013 30-AUG 149.00 PUT |
Net Credit : $.62
Expiry: 30-AUG (3 days)
| Price | Profit/Loss |
| $148.00 | ($421) |
| $152.00 | ($254) |
| $156.00 | ($90) |
| $160.00 | $7 |
| $164.00 | $40 |
| $167.12 | $47 |
| $168.00 | $48 |
| $172.00 | $49 |
| $176.00 | $49 |
| $180.00 | $49 |
| $184.00 | $49 |
Monday, August 5, 2013
LNKD Bull-Put Credit Spread
LNKD Bull-Put Credit Spread
| Trade Details | |||
| Sell 1 LNKD 2013 09-AUG 220.00 PUT | |||
| Buy 1 LNKD 2013 09-AUG 215.00 PUT |
Expire (4): 09-AUG
| Price | 8/8/2013 Profit/Loss | ||
| $215.00 | ($337) | ||
| $220.00 | ($124) | ||
| $225.00 | ($4) | ||
| $230.00 | $19 | ||
| $232.73 | $21 | ||
| $235.00 | $21 | ||
| $240.00 | $21 | ||
| $245.00 | $21 | ||
| $250.00 | $2 | ||
NFLX Bull-Put Credit Spread
| Trade Details | |||
| Sell 1 NFLX 2013 09-AUG 230.00 PUT | |||
| Buy 1 NFLX 2013 09-AUG 220.00 PUT |
Credit received: $.31
Expire (4): 09-AUG
Tuesday, June 4, 2013
Stock Pinning
What is 'Stock Pinning'?
Action/activity at a certain strike price
To find pinning activity look at the open interest and daily volume of a particular strike.
If there is a significant change in daily volume for a particular strike call or put that would be considered as the pinning point for the stock.
It is better to open a position at the pinning point.
There is a potential pinning activity in few stocks such as AAPL GS AMZN BIDU
Action/activity at a certain strike price
To find pinning activity look at the open interest and daily volume of a particular strike.
If there is a significant change in daily volume for a particular strike call or put that would be considered as the pinning point for the stock.
It is better to open a position at the pinning point.
There is a potential pinning activity in few stocks such as AAPL GS AMZN BIDU
Wednesday, October 10, 2012
Iron Condors
Never “leg in” to the Condor like with the HP (High Probability) spreads.
The trade is always placed with a limit order asking for a minimum of a $1 credit.
Cedit spreads are 2 strikes apart between short and long Options.
Example:
Submit an limit order for an Iron Condor that uses the 118/120 strikes for the put spreads (118 long, 120 short) and 126/128 strikes for the call spreads. (126 short, 128 long).
These trades are VERY Vega sensitive so you would want to enter at the time of maximum implied volatility.
Start by looking to see if you can secure at least a $1 credit for the entire condor using “2-wide” spread strikes at the .30 delta level on the short calls and puts.
The LP (low Probability) Condor trade does not perform well during times where the chart is really moving. This trade performs exceptionally well during times where the market has just finished making a big move and then consolidates sideways for a few weeks.
The trade is always placed with a limit order asking for a minimum of a $1 credit.
Cedit spreads are 2 strikes apart between short and long Options.
Example:
Submit an limit order for an Iron Condor that uses the 118/120 strikes for the put spreads (118 long, 120 short) and 126/128 strikes for the call spreads. (126 short, 128 long).
These trades are VERY Vega sensitive so you would want to enter at the time of maximum implied volatility.
Start by looking to see if you can secure at least a $1 credit for the entire condor using “2-wide” spread strikes at the .30 delta level on the short calls and puts.
The LP (low Probability) Condor trade does not perform well during times where the chart is really moving. This trade performs exceptionally well during times where the market has just finished making a big move and then consolidates sideways for a few weeks.
Tuesday, October 2, 2012
Spread Types
Credit Spreads: (Bull Call Spread, Vertical Debit Call Spread)
Give you maximum credit on day one and you carry that obligation until trade closure or expiration. Losses that are not riskmanaged can be staggering. These are typically set up so that the price must do nothing, or at least move AWAY from the spread in order to profit.
You are bullish on the underlying instrument.
This is a Long Vega trade.
Buy a front month Call option that is slightly in the money and to help reduce your cost basis, you sell a front month Call option somewhat out of the money.
Credit spreads are always “Negative” or “Short” Gamma” positions. This feature of Gamma works against the position as price gets closer to your short strike.
Bull Put Spread Construction:
Buy 1 OTM Put (cheaper)
Sell 1 ITM Put (expensive)
Debit Spreads:
Require cash to set up on day one however your maximum risk is normally limited to your initial investment. Profits can be several times what your initial investment was. These are usually set up so that the price must MOVE for you to profit.
Give you maximum credit on day one and you carry that obligation until trade closure or expiration. Losses that are not riskmanaged can be staggering. These are typically set up so that the price must do nothing, or at least move AWAY from the spread in order to profit.
You are bullish on the underlying instrument.
This is a Long Vega trade.
Buy a front month Call option that is slightly in the money and to help reduce your cost basis, you sell a front month Call option somewhat out of the money.
Credit spreads are always “Negative” or “Short” Gamma” positions. This feature of Gamma works against the position as price gets closer to your short strike.
Bull Put Spread Construction:
Buy 1 OTM Put (cheaper)
Sell 1 ITM Put (expensive)
Debit Spreads:
Require cash to set up on day one however your maximum risk is normally limited to your initial investment. Profits can be several times what your initial investment was. These are usually set up so that the price must MOVE for you to profit.
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