Trade update (Oct/26/2012):
Perfect trades. All winners here!
Trade-1: Expired worthless for 100% of credit profit
Trade-2: Closed for $4 for 100% profit
Trade-3: Expired worthless for 100% of credit profit
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Iron condors work great with high volatility scenarios like we are seeing now in AAPL and AMZN and the overall markets. In AMZN I did another trade where I eat premium from the weekly and get long the Nov calls. Here are some trades we took today.
AMZN Trade-1 (CREDIT):
Buy 1X $260 Weekly call
Sell 1X $255 Weekly call
Sell 1X $200 Weekly put
Buy 1X $195 Weekly put
(Got a credit of $1.05)
AMZN Trade-2 (DEBIT):
Sell 1X $245 Weekly call
Buy 1X $245 Nov Monthly call
(Paid $2)
AAPL Trade-1 (CREDIT):
Buy 1X $660 Weekly call
Sell 1X $655 Weekly call
Sell 1X $570 Weekly put
Buy 1X $565 Weekly put
(Got a credit of $1.2)
*Please do your own research before buying any stock listed here. Disclaimer.
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Thursday, October 25, 2012
Wednesday, October 24, 2012
NSM and the volatility play closed, Oct/24/2012
I got in NSM seeing exceptionally high volatility in the last 2-3 weeks. Got the upper legs first, then got the lower legs when I thought it was climbing higher. After a scary dip today, I saw the crush in volatility and thought this was the right time to exit the trade. Closed first trade for 10c, then the second trade for $1. Overall almost 92% profit in the first trade, and approx 16% profit in the second.
Trades:
Sell 1X $40 Nov call
Buy 1X $45 Nov call
(Got a credit of $1.25)
Sell 1X $30 Nov put
Buy 1X $25 Nov put
(Got a credit of $1.2)
*Please do your own research before buying any stock listed here. Disclaimer.
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| NSM daily chart showing Volatility crash (light blue line) |
Trades:
Sell 1X $40 Nov call
Buy 1X $45 Nov call
(Got a credit of $1.25)
Sell 1X $30 Nov put
Buy 1X $25 Nov put
(Got a credit of $1.2)
*Please do your own research before buying any stock listed here. Disclaimer.
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BBY new monthly trade, Oct/24/2012
Trade update (Oct/26/2012):
Trade-1: Closed for 31c for 33% loss
Trade-2: Closed for 51c for 30% of max credit loss
Not bad at all when stock moved 7-8% against our direction.
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BBY reports earnings after Nov expiry (Nov/20). I like the trade where we can make money if it stays over $17 by Nov/17.
Trade-1 (DEBIT):
Buy 1X $16 Nov call
Sell 1X $17 Nov call
(Paid 46c)
Trade-2 (CREDIT):
Sell 1X $16 Nov put
Buy 1X $15 Nov put
(Got a credit of 30c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Trade-1: Closed for 31c for 33% loss
Trade-2: Closed for 51c for 30% of max credit loss
Not bad at all when stock moved 7-8% against our direction.
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BBY reports earnings after Nov expiry (Nov/20). I like the trade where we can make money if it stays over $17 by Nov/17.
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| BBY Weekly chart |
Trade-1 (DEBIT):
Buy 1X $16 Nov call
Sell 1X $17 Nov call
(Paid 46c)
Trade-2 (CREDIT):
Sell 1X $16 Nov put
Buy 1X $15 Nov put
(Got a credit of 30c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Tuesday, October 23, 2012
VMW new monthly trade, Oct/23/2012
Trade update (Nov/13/2012):
Sold half for 65c for 140% profit
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VMW reports earnings today after close and looking at the weekly chart below, I liked the idea of VMW staying above the lows for a few days/weeks. Looking at the declining markets and VMW at it's lows I thought there are good chances VMW might get pinned to $85 for the month.Although I liked the 80/85/90 butterfly safer and attractive too, I went ahead with 82.5/85/87.5 butterfly looking at a very skewed risk/reward potential as shown in the two images below.
Trade:
Buy 1X $82.5 Nov call
Sell 2X $85 Nov call
Buy 1X $87.5 Nov call
(Paid 27c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Sold half for 65c for 140% profit
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VMW reports earnings today after close and looking at the weekly chart below, I liked the idea of VMW staying above the lows for a few days/weeks. Looking at the declining markets and VMW at it's lows I thought there are good chances VMW might get pinned to $85 for the month.Although I liked the 80/85/90 butterfly safer and attractive too, I went ahead with 82.5/85/87.5 butterfly looking at a very skewed risk/reward potential as shown in the two images below.
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| VMW Weekly chart |
 |
| Risk/Reward with current Implied Volatility |
 |
| Risk/Reward with assumed lower Implied Volatility for the expiry |
Trade:
Buy 1X $82.5 Nov call
Sell 2X $85 Nov call
Buy 1X $87.5 Nov call
(Paid 27c)
*Please do your own research before buying any stock listed here. Disclaimer.
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INTC new monthly trade, Oct/23/2012
Trade update (Nov/02/2012):
Closed for 80c at close for 80% profit
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INTC earnings are over and I think we have a good chance we hit 22 to 23 easily in the next few weeks (in that case I sell this spread I got below). INTC hasn't gone down much considering the downside action in the markets and I liked that sign in this stock.
Trade:
Buy 1X $21 Nov call
Sell 1X $22 Nov call
(Paid 44c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed for 80c at close for 80% profit
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INTC earnings are over and I think we have a good chance we hit 22 to 23 easily in the next few weeks (in that case I sell this spread I got below). INTC hasn't gone down much considering the downside action in the markets and I liked that sign in this stock.
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| INTC weekly chart |
Trade:
Buy 1X $21 Nov call
Sell 1X $22 Nov call
(Paid 44c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Friday, October 19, 2012
SDS new trade, Oct/19/2012
Trade update (Oct/24/2012)
Closed the upper legs for 83c (I paid 55c if I break the trade shown below) for 51% profit
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I want to play a possible sharp decline in the markets in the coming weeks and I thought SDS might be a good bet to get in as a hedge as I continue to play any weeklies to the upside (if I plan to).
Trade:
Sell 1X $53 Dec puts
Buy 1X $51 Dec puts
Sell 1X $57 Dec calls
Buy 1X $55 Dec calls
(Got a total credit of 45c; $1 for credit of puts, 55c debit for calls)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed the upper legs for 83c (I paid 55c if I break the trade shown below) for 51% profit
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I want to play a possible sharp decline in the markets in the coming weeks and I thought SDS might be a good bet to get in as a hedge as I continue to play any weeklies to the upside (if I plan to).
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| SPX weekly chart |
Trade:
Sell 1X $53 Dec puts
Buy 1X $51 Dec puts
Sell 1X $57 Dec calls
Buy 1X $55 Dec calls
(Got a total credit of 45c; $1 for credit of puts, 55c debit for calls)
*Please do your own research before buying any stock listed here. Disclaimer.
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Thursday, October 18, 2012
RIG new weekly trade, Oct/18/2012
Trade update (Oct/19/2012):
Closed for 6c at close for 80% of credit profit
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I think RIG has gone up too much for the week and would like to sell premium at these levels.For 1 day left in expiry I don't think this one is bad.
Trade:
Sell 1X $48.5 Weekly call
Buy 1X $49.5 Weekly call (for protection)
(Got a credit of 30c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed for 6c at close for 80% of credit profit
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I think RIG has gone up too much for the week and would like to sell premium at these levels.For 1 day left in expiry I don't think this one is bad.
Trade:
Sell 1X $48.5 Weekly call
Buy 1X $49.5 Weekly call (for protection)
(Got a credit of 30c)
*Please do your own research before buying any stock listed here. Disclaimer.
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NASDAQ trend, Oct/18/2012
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| NASDAQ daily chart |
Nasdaq showing a cleaner trend to the downside. Looking for ways to trade this trend for the next few days.
*Please do your own research before buying any stock listed here. Disclaimer.
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Wednesday, October 17, 2012
CLF new weekly trade, Oct/17/2012
Trade update (Oct/19/2012):
Expired worthless giving us max of 44c for 100% profit
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I think CLF has gone up too much for the week and would like to sell premium at these levels. There are more chances that CLF will close below $45 for the week.
Trade:
Sell 1X $45 Weekly call
Buy 1X $46 Weekly call (for protection)
(Got a credit of 44c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Expired worthless giving us max of 44c for 100% profit
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I think CLF has gone up too much for the week and would like to sell premium at these levels. There are more chances that CLF will close below $45 for the week.
Trade:
Sell 1X $45 Weekly call
Buy 1X $46 Weekly call (for protection)
(Got a credit of 44c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Friday, October 12, 2012
SPX S&P watching this support to hold, Oct/12/2012
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| SPX daily chart |
*Please do your own research before buying any stock listed here. Disclaimer.
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Wednesday, October 10, 2012
SCHN, ABX new trades, Oct/10/2012
Trade update (Oct/12/2012):
Closed ABX for 65c for almost 50% of max possible loss
Holding SCHN for OCT expiry.
Trade update (Oct/19/2012):
Expired worthless giving us 35c for 100% Profit.
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SCHN trade:
Sell 1X $27 OCT put
Buy 1X $26 OCT put
(Got a credit of 35c)
ABX trade:
Sell 1X $40 Weekly put
Buy 1X $39 Weekly put
(Got a credit of 22c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed ABX for 65c for almost 50% of max possible loss
Holding SCHN for OCT expiry.
Trade update (Oct/19/2012):
Expired worthless giving us 35c for 100% Profit.
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SCHN trade:
Sell 1X $27 OCT put
Buy 1X $26 OCT put
(Got a credit of 35c)
ABX trade:
Sell 1X $40 Weekly put
Buy 1X $39 Weekly put
(Got a credit of 22c)
*Please do your own research before buying any stock listed here. Disclaimer.
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AMZN new weekly trade, Oct/10/2012
Trade update (Oct/12/2012):
Closed for $2.5 for almost 28% of max loss
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AMZN fell below it's one standard deviation move after being such a strong stock in the last few weeks. $245 is in the middle of one standard deviation and two standard deviation and I think there are good chances AMZN will hold 240-245 range for the week, maybe even next week. Volatility is higher which gives some juice to the premium too.
Trade:
Sell 1X $245 Weekly put
Buy 1X $240 Weekly put
(Got a credit of $1.5)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed for $2.5 for almost 28% of max loss
________________________________________________________
AMZN fell below it's one standard deviation move after being such a strong stock in the last few weeks. $245 is in the middle of one standard deviation and two standard deviation and I think there are good chances AMZN will hold 240-245 range for the week, maybe even next week. Volatility is higher which gives some juice to the premium too.
 | |
| AMZN daily chart showing standard deviation and increasing volatility |
Trade:
Sell 1X $245 Weekly put
Buy 1X $240 Weekly put
(Got a credit of $1.5)
*Please do your own research before buying any stock listed here. Disclaimer.
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Friday, October 5, 2012
CMG new trade, Oct/05/2012
Trade update (Oct/18/2012):
Do not want to mess with the earnings so closed this trade for $1.5 for a 25% profit of max profit. I wish it had gone up much higher so I could have convert this one into an iron condor.
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This one can be a possible earnings play but we will see how it goes in the next week. CMG earnings are due on Oct/18 which falls in Oct expiry. Volatility is high and we like to sell premium on OTM strikes. I think it will be hard for CMG to break down heavily in front of earnings and we might go up soon here considering the uncertain nature of the earnings.
Trade:
Sell 1X $275 Oct put
Buy 1X $270 Oct put
(Got a credit of $2)
In the best case scenario, I would love to convert this one to an iron condor if CMG goes up too high.
*Please do your own research before buying any stock listed here. Disclaimer.
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Do not want to mess with the earnings so closed this trade for $1.5 for a 25% profit of max profit. I wish it had gone up much higher so I could have convert this one into an iron condor.
________________________________________________________
This one can be a possible earnings play but we will see how it goes in the next week. CMG earnings are due on Oct/18 which falls in Oct expiry. Volatility is high and we like to sell premium on OTM strikes. I think it will be hard for CMG to break down heavily in front of earnings and we might go up soon here considering the uncertain nature of the earnings.
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| CMG weekly chart |
Trade:
Sell 1X $275 Oct put
Buy 1X $270 Oct put
(Got a credit of $2)
In the best case scenario, I would love to convert this one to an iron condor if CMG goes up too high.
*Please do your own research before buying any stock listed here. Disclaimer.
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SPX new monthly trade, Oct/05/2012
Trade update (Oct/09/2012):
Closed for $4 today morning for 100% profit
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Wanted to get into SPX trade as we were making a double top and coming down a bit. SPX does look like it's overbought. Usually mondays have been down days recently, I may get out of it on monday or keep it for longer. I wanted to get in as a hedge in case I play some upside moves for the next week.
Trade:
Buy 1X 1450 Oct put
Sell 1X 1440 Oct put
(paid $2)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed for $4 today morning for 100% profit
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Wanted to get into SPX trade as we were making a double top and coming down a bit. SPX does look like it's overbought. Usually mondays have been down days recently, I may get out of it on monday or keep it for longer. I wanted to get in as a hedge in case I play some upside moves for the next week.
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| SPX daily chart (Double top) |
Trade:
Buy 1X 1450 Oct put
Sell 1X 1440 Oct put
(paid $2)
*Please do your own research before buying any stock listed here. Disclaimer.
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Monday, October 1, 2012
Amazon.com, AMZN new weekly trade Oct/01/2012
Trade update (Oct/08/2012):
Closed half at $1.2
Closed half at $0.40
Total: 33% profit
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Just want AMZN to drop in the blue zone shown in the next 4 days. The momentum can bring it down in our target area and we can easily sell this one for a double or more. If this doesn't work in the next 1-2 days one can get out for 50% loss.
Trade:
Buy 1X $250 weekly put
Sell 2X $245 weekly put
Buy 1X $240 weekly put
(paid 60c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed half at $1.2
Closed half at $0.40
Total: 33% profit
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Trade:
Buy 1X $250 weekly put
Sell 2X $245 weekly put
Buy 1X $240 weekly put
(paid 60c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Facebook Inc, FB new trade Oct/01/2012
Trade update (Oct/10/2012):
Closed for $1.10 today morning for 145% profit
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FB jump after the big drop from last week seemed a bit suspicious. Playing this put debit spread gives us a few days for us to watch FB's direction. If this doesnt go down in the next few days, we will close out this position.
Trade:
Buy 1X $21 Oct put
Sell 1X $19 Oct put
(paid 45c)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed for $1.10 today morning for 145% profit
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FB jump after the big drop from last week seemed a bit suspicious. Playing this put debit spread gives us a few days for us to watch FB's direction. If this doesnt go down in the next few days, we will close out this position.
Trade:
Buy 1X $21 Oct put
Sell 1X $19 Oct put
(paid 45c)
*Please do your own research before buying any stock listed here. Disclaimer.
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IOC, OXY, DRI, LULU credit spreads for sep/28/2012
Trade updates (Oct/08/2012):
Closed IOC for 45c for approx 50% credit profit
Closed OXY for 25c for over 50% credit profit
Closed DRI for 50c for approx 20% profit
LULU expired to give us max profit of 60c for 100% profit
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IOC
Trade:
Sell $75 weekly put
Buy $72.5 weekly put
(Got 85c credit)
OXY
Trade:
Sell $85 weekly put
Buy $82.5 weekly put
(Got 46c credit)
DRI
Trade:
Sell $55 weekly put
Buy $52.5 weekly put
(Got 60c credit)
LULU
Trade:
Sell $72.5 weekly put
Buy $70 weekly put
(Got 60c credit)
*Please do your own research before buying any stock listed here. Disclaimer.
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Closed IOC for 45c for approx 50% credit profit
Closed OXY for 25c for over 50% credit profit
Closed DRI for 50c for approx 20% profit
LULU expired to give us max profit of 60c for 100% profit
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IOC
Trade:
Sell $75 weekly put
Buy $72.5 weekly put
(Got 85c credit)
OXY
Trade:
Sell $85 weekly put
Buy $82.5 weekly put
(Got 46c credit)
DRI
Trade:
Sell $55 weekly put
Buy $52.5 weekly put
(Got 60c credit)
LULU
Trade:
Sell $72.5 weekly put
Buy $70 weekly put
(Got 60c credit)
*Please do your own research before buying any stock listed here. Disclaimer.
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Weekly trade roundup ending sep/28/2012
Roundup of TLT trades for last week:
http://breakout-stocks.blogspot.com/2012/09/tlt-weekly-new-trade-sept242012.html
Let it expire to eat entire premium. Max profit.
http://breakout-stocks.blogspot.com/2012/09/tlt-weekly-new-trade-sept252012.html
Closed the position, paid 20c. 6% profit
*Please do your own research before buying any stock listed here. Disclaimer.
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http://breakout-stocks.blogspot.com/2012/09/tlt-weekly-new-trade-sept242012.html
Let it expire to eat entire premium. Max profit.
http://breakout-stocks.blogspot.com/2012/09/tlt-weekly-new-trade-sept252012.html
Closed the position, paid 20c. 6% profit
*Please do your own research before buying any stock listed here. Disclaimer.
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