New Trade : IWM

Stock / Symbol: iShares Russell 2000 Index / IWM Option Strategy: [private_monthly]double diagonal[/private_monthly] Price at trade post: $111.06 Reasoning: Putting on a [private_monthly]double diagonal on IWM with the short legs expiring in January[/private_monthly]. The Greeks are a delta of 16.2, a positive theta of 4.8 and a vega of 11.8. We’ll look to adjust or […]

New Trade : DIA

Stock / Symbol: SPDR Dow Jones Industrial Average / DIA Option Strategy: [private_monthly]double diagonal[/private_monthly]; Price at trade post: $174.67 Reasoning: Between now and the expiration of the FebWk1 options, the standard deviation calculation for DIA puts it in a trading range between [private_monthly]167 to 182. I’m going to use a Double Diagonal[/private_monthly] which has a […]

Trade Adjustment : TSLA

Stock / Symbol: Tesla Motors / TSLA Option Strategy: double calendar Price at trade entry: $225.75 Price at this adjustment: $231 Current Position: long 1 TSLA AugWk2 245 call short -1 TSLA AugWk1 245 call long 1 TSLA AugWk2 205 put short -1 TSLA AugWk1 205 put Reasoning: Not looking like we’ll get enough of […]

Closing Trade : QQQ

Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: double diagonal Price at trade entry: $63.73 Price at trade close: $66.20 Current Position: Long 4 QQQ DecWk4 70 calls Short -4 QQQ Dec12 67 calls Reasoning: I had closed out the put portion of the trade last week because it had: a) reached 80% of […]

Trade Update / Adjustment : QQQ

Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: [private_monthly]double diagonal[/private_monthly] Price at trade entry: $63.73 Price at this post: $64.80 Current Position:[private_monthly] Long 4 QQQ DecWk4 70 calls Short -4 QQQ Dec12 67 calls [/private_monthly] Update: I bought back the put spread portion of this trade today for a net debit of $0.05, giving […]

New Trade : QQQ

Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: [private_monthly]double diagonal[/private_monthly] Price at trade post: $63.73 Reasoning: With 31 days to Dec option expiration, we’re putting on a [private_monthly]double diagonal on QQQ. [/private_monthly]This is a delta neutral trade with a slight upside bias (currently at 11) with a positive theta of 5.4 and a negative […]

Closing Trade : DIA

Stock / Symbol: SPDR Dow Jones Industrial Average / DIA Option Strategy: [private_monthly]double diagonal[/private_monthly] Price at trade entry: $135.18 Price at this adjustment: $130.65 Current Position:[private_monthly] Long 3 DIA Dec12 139 calls Long 3 DIA Dec12 133 puts Short -3 DIA Nov12 138 calls Short -3 DIA Nov12 134 puts [/private_monthly] Reasoning: With DIA piercing […]

New Trade : DIA

Stock / Symbol: SPDR Dow Jones Industrial Average / DIA Option Strategy: [private_monthly]double diagonal[/private_monthly] Price at trade post: $135.18 Reasoning: Between now and November expiration, the standard deviation calculation for DIA puts it in a trading range between [private_monthly]130 to 141. I’m going to use a Double Diagonal here with a slight upside bias.[/private_monthly]This trade […]