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 |
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| Risk/Reward with current Implied Volatility |
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| 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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