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Let's Trade Options

  • #15,421
  • Mar 20, 2018 3:26pm Mar 20, 2018 3:26pm
I've never done a calendar spread. I just watched a Ryan Jones webinar where he talks about what he calls PPD (price per day) in determining which option expiry to go with. I might do some playing around with the concept over the w/e. Looks like a decent strategy if the SP continues to drop over the next few weeks.

http://www.optionpub.com/articles/?ID=29
  • #15,422
  • Mar 20, 2018 5:14pm Mar 20, 2018 5:14pm
Quoting JR97
I've never done a calendar spread. I just watched a Ryan Jones webinar where he talks about what he calls PPD (price per day) in determining which option expiry to go with. I might do some playing around with the concept over the w/e. Looks like a decent strategy if the SP continues to drop over the next few weeks. http://www.optionpub.com/articles/?ID=29
calendars are great for bracketing volatile events. Ideally, you can sell the front option at a date just before the event (event = earnings announcement, election results, FOMC statement, etc etc) - and buy the back option at a date past the event. If you do that with enough lead time, the iv's of the options will rise and you can make money on just the iv rise if the event is juicy enough. I will give you some pointers about calendars but what I just said is the rule I live by for many that I trade: you want to get in them when iv's are low and catch increasing iv at a time as close to the calendar expiry as possible....

....so, you have various ways to profit from calendars: just off the iv rise, or from a finish at or near your strike, or you can enter the trade knowing that you are just positioning to trade further on the back option. Sometimes calendars are just stepping stones for future spread trades and if you are trading lots of the same thing (SPY) at lots of dates and lots of strikes, you end up with a book of trades that you can constantly recombine into spreads and more long/short positions...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,423
  • Mar 21, 2018 11:09am Mar 21, 2018 11:09am
...the way tings seem this morning kinda like hive mind resigned to rate hike, so if they skip it that might be the surprise that tanks US indices. Rate hike done and markets continue to rally? Or really not much binary effect on a rate hike? Well, either way I am set up and looking for maybe a little more long index action for this week's close or maybe longer
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,424
  • Mar 21, 2018 1:56pm Mar 21, 2018 1:56pm
PUMP N DUMP.....Mar FOMC prolly be a 'meh'....we'll see what the remainder of the week brings
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,425
  • Mar 22, 2018 1:53pm Mar 22, 2018 1:53pm
Most of the traps I set for a dump off the FOMC are coming due tomorrow, but if I could see a hard dump at todays close I would be looking to close DIA put flys, UVXY call flys, SPY calendars, etc....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,426
  • Edited 2:54pm Mar 22, 2018 2:13pm | Edited 2:54pm
DIA Mar23 put fly $237/240/243 in several sets average about 18c trying to get off at 80c now.... done
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,427
  • Mar 22, 2018 2:58pm Mar 22, 2018 2:58pm
Quoting The Fool
Most of the traps I set for a dump off the FOMC are coming due tomorrow, but if I could see a hard dump at todays close I would be looking to close DIA put flys, UVXY call flys, SPY calendars, etc....
stellar day.....DIA and SPY put spreads to Mar29 all I have left

Mar23 UVXY $18 calls I bot @37c to leg in now just closed for 75c
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,428
  • Mar 22, 2018 3:56pm Mar 22, 2018 3:56pm
Quoting The Fool
Most of the traps I set for a dump off the FOMC are coming due tomorrow, but if I could see a hard dump at todays close I would be looking to close DIA put flys, UVXY call flys, SPY calendars, etc....

Wast that dump into the close sufficient? holy crap.
  • #15,429
  • Mar 23, 2018 1:35pm Mar 23, 2018 1:35pm
btfd til the next d
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,430
  • Mar 26, 2018 11:09pm Mar 26, 2018 11:09pm
Quoting The Fool
DIA and SPY put spreads to Mar29 all I have left Mar23 UVXY $18 calls I bot @37c to leg in now just closed for 75c
DIA fly in for 18c might get almost a buck back but looks more like it will blow past my trap on the bounce so I will be looking for an out in profit tomorrow
Attached Image (click to enlarge)
Click to Enlarge Name: dia.png Size: 84 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,431
  • Mar 26, 2018 11:22pm Mar 26, 2018 11:22pm
Quoting The Fool
btfd til the next d
wisht I hadda grabbed some long calls somewhere....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,432
  • Mar 27, 2018 7:12am Mar 27, 2018 7:12am
Over at NADEX they've got pre-built vertical spreads. When the opportunity arises where I can get one when price is at the floor/ceiling, I'll hedge with one going in the opposite direction if I can find another cheaper one with price at the floor/ceiling. I go into the setup here: http://content.screencast.com/users/...0Mar.%2027.gif

Here's last night's that played out perfect. Captured over 100% of the daily range for the pair.
Hedged gbp/jpy again. $97/per bear spread. $18/per bull spread as a hedge. Trade was never in danger. Bull spread expired for $0 at 5:00am Sold the bear spread at 5:30am for $198 netting $198-$97-$18=$83 per contract. GBP/JPY is the perfect instrument for spreads since it averages over 100 pips a day.

The entry: http://content.screencast.com/users/...0Mar.%2026.gif
The exit: http://content.screencast.com/users/...0Mar.%2027.gif

Also did a binary trade on the EURUSD when price was over 3 strikes away from the daily pivot. I don't do deep OTM too much anymore, but this one was too good to pass up. Picked up them up for $13.25 per. Set up an order to close on the touch for $50/per netting $36.75 per. Green box highlights the central pivot and strike. A pretty good 2:1 r:r trade.

http://content.screencast.com/users/...0Mar.%2027.gif
  • #15,433
  • Mar 27, 2018 1:03pm Mar 27, 2018 1:03pm
Quoting The Fool
DIA fly in for 18c might get almost a buck back but looks more like it will blow past my trap on the bounce so I will be looking for an out in profit tomorrow
...still hanging in but a DIA dive to close down $241 way will push me to a tp @ 70c, or net 50c & about 2.5 bag....take the money n run with this wild shit says I...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,434
  • Mar 27, 2018 1:06pm Mar 27, 2018 1:06pm
Quoting JR97
Over at NADEX they've got pre-built vertical spreads.
I appreciate you posting this stuff here JR and I hope you will continue - apologies due tho since I rarely have time these days to dive into other people's trading ideas, just barely maintain my thin book and post a few blurbs here and there.....that will change in time I hope....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,435
  • Mar 27, 2018 1:26pm Mar 27, 2018 1:26pm
No worries. Hopefully some of the currency folks get the options bug. Nadex spreads are a great way to mirror market movements with limited risk and without risk of getting stopped out if the trades are setup properly.

I've got QID (proshares ultrashort QQQ) calls 4/20 on since yesterday. Not the best entry, but in profit. No complicated strat with this one. Just riding the apocalypse wave.
  • #15,436
  • Mar 27, 2018 2:37pm Mar 27, 2018 2:37pm
Quoting The Fool
{quote}...still hanging in but a DIA dive to close down $241 way will push me to a tp @ 70c, or net 50c & about 2.5 bag....take the money n run with this wild shit says I...
...trying to close this DIA put fly at 75c - prolly just 25c short of maxP .... it's right there showing a 77c mid but I might have to ride the crazy shit another day. Time is your friend on these flys and calendars IF (big IF) you are looking to pin the nice round short number near expiry cuz as you all know (who all?) that's the sweet spot for huge r:r....

I'll be glad to get out today though, the way things are moving....

I still watch for equities to do what they do (grind up) and these hot moves down I still have to see as btfd opps going into Q1 earnings season a few weeks away...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,437
  • Mar 27, 2018 2:51pm Mar 27, 2018 2:51pm
Quoting The Fool
.... I still watch for equities to do what they do (grind up) and these hot moves down I still have to see as btfd opps going into Q1 earnings season a few weeks away...
filling cheap otm SPY call spreads out to Apr 20 and beyond - out to $270 and $272
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,438
  • Edited 4:29pm Mar 27, 2018 4:11pm | Edited 4:29pm
Quoting The Fool
{quote}...trying to close this DIA put fly at 75c - prolly just 25c short of maxP .... it's right there showing a 77c mid but I might have to ride the crazy shit another day....
filled @ 75c a few minutes past the close and glad to net out >50c. If I could average net 50c on everything I do I'd be a rich man in no time...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,439
  • Edited 11:55am Mar 28, 2018 10:49am | Edited 11:55am
bullshit bullish trades filled yesterday:

SPY Apr 20/23 call calendar @ $272 for 6c

SPY Apr2 call fly, $268/270/272 for 25c (need a hard bounce to $265+ by Friday morning on this....too aggressive and paid too much probably but it was just a 4-lot.....)

DIA call fly. Apr6 $247.5/250/252.5 for 13c
"If The Fool persists in his Folly he will become wise." - William Blake
  • #15,440
  • Edited 3:52pm Mar 28, 2018 12:15pm | Edited 3:52pm
looking for a FB bounce? trying a May4 $170/175/180 call fly for 27c today

....wouldn't fill
"If The Fool persists in his Folly he will become wise." - William Blake
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