Trade Updates : RUT and SPY

Stock / Symbol: Russell 2000 / RUT Option Strategy: [private_monthly]iron condor[/private_monthly] Price at trade entry: $834 Price at this update: $816.50 Original Position:[private_monthly] Short -2 RUT Nov12 885 calls Long 2 RUT Nov12 895 calls Short -2 RUT Nov12 780 puts Long 2 RUT Nov12 770 puts [/private_monthly] Update: Bought back 885/895 call spread today […]

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 : QQQ

Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: [private_monthly]double calendar[/private_monthly] Price at trade post: $68.25 Reasoning: We’re putting on a [private_monthly]double calendar here that works in tandem with our double diagonal on DIA. [/private_monthly]This is a delta neutral trade with a slight downside bias (currently at -14.73) with a positive theta of 3.20 and […]

New Trade : SPY

Stock / Symbol: SPDR S&P 500 ETF / SPY Option Strategy: [private_monthly] iron condor[/private_monthly] Price at trade post: $146 Reasoning: With 30 days left till November expiration, we’re putting on an[private_monthly] Iron Condor on SPY to fit between the current standard deviation calculation of +/- 6.29 from its current price. Our[private_monthly] Iron Condor[/private_monthly] currently has […]

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 […]

New Trade : RUT

Stock / Symbol: Russell 2000 / RUT Option Strategy: [private_monthly]iron condor[/private_monthly] Price at trade post: $834 Reasoning: With 30 days till November expiration, it’s time to put on a new [private_monthly]Iron Condor on RUT. With an expected deviation of 45 points between now and November expiration, I’m selling the 885 calls and the 780 puts.[/private_monthly] […]

Strategy Overview : Double Calendar

Double Calendar Spreads are a type of debit spread that results in a strategy that is delta neutral, positive theta, and positive vega.  Like an iron condor, this strategy is best applied when you believe the underlying won’t move much / is range bound.  However, unlike an iron condor, this strategy increases in value with […]

Market Outlook

Recently, the S&P ran out of steam when it could not remain above the 17 day moving average.  With the Williams Percent R indicator showing a strong overbought indication on Oct 4th, the S&P has pulled back to its 50 day moving average.  At this point, while the underlying technical behavior and slope remain positive, […]

Strategy Overview : Iron Condor

Iron Condors are  created by combining a Bear Call Spread (short 1 closer to the money call + long 1 further from the money call) with a Bull Put Spread (short 1 closer to the money put + long 1 further from the money put). The expiration months and increments between strike prices for all […]