Let's Trade Options

...hope you are right...I have XSP call backspreads that'll do well if we can rally a 1% or better Friday...

re: GOOGL, I'd bet there's a good chance tech stocks will be rallying after thee Nov1 FOMC, and GOOGL will be heading back to $140.

One thing I look for after a volatile self-off is some chances to do cheap vertical spreads. The elevated iv's can make for some good opps in fotm options....
Cheap spreads like this are painless, as they are margin-neutral and the risk is capped to the downside. As shown, could be an easy 10-bagger....

In the following:

EBAY Nov3 39 CALL at $0.32

Should move within a week....

Added to the following:

GOOGL Nov3 126 Call at $0.48, lowering the average to $0.67

I thought I posted this earlier, but I guess it was to another group. But if it shows up later, I only added one time so far....

The 10 delta SPX Nov AM/PM 50c call calendar is there for the taking.

I am fixing Batman. Let me explain. We know that the double calendar (aka Batman) has potential for a reliable weekly income trade. Example for the coming week...

Shown is the Nov 3/6 SPX 4230/3975 double calendar , as priced @ Friday close. I usually put these on Mon-Tues, when they can be had somewhat cheaper. The model shows expiration day P/L curve. Great if you get good movement well under one of those tents, but a loser if price settles right there in the middle, or (more rarely) blows past the be's @ the tails.

(4230 calls @ 17 delta; 3975 puts @ 14 delta) (Friday close @ 4117. Nov3 em = 97, call it 100, gives a high target @ 4220, low at 4020)

I have fallen into this Valley of Death one or two too many times. Propose a simple fix: add the 40 delta double calendar with same dates as the wider Batman. The graph shows this as a 2-lot SPX double calendar @ 4150/4175. i would do this DC in XSP instead, where I could get more granular, maybe do a 15-lot. I guess maybe the max profit for the XSP DC should match the cost of the wider Batman....

...then, add the tail hedging SPX, XSP, or SPY verts to get your risk free trade. What's not to love? ...lol..we'll see, could be the real deal...

Well, there are several that I am going to be looking at before the opening in the morning. I'll check news and earning issues, then the premarket to see if the market is up or down, and then the cost for these options. Several have different potentially profitable strike prices, so I'll look at each on in the morning and see which looks best.

These are the ones I'll check out:

CGNX Nov17 35 CALL

CVX Nov 10 149 CALL

FDX Nov3 235 CALL

GOOG Nov3 126 CALL

JBHT Nov17 175/180 CALLs

MA Nov3 375 CALL

MKSI Nov17 75 CALL

PNR Nov17 60 CALL

TROW Nov10 93 CALL

UPS Nov10 CALL

All expiration dates for SPY CALLs

All should be profitable, and with this many, I'm sure I'll find some good ones at decent prices.

all calls, yep, I am sure you are seeing lots of oversold signals and we could certainly see a good little bounce. But, until there is a signal(s) that rates are coming down, I think stocks will have problems getting into a sustained rally...

In the following:

UPS Nov10 137 CALL at $1.35

Several of the other ones had popped up already, but this looks like it can make some money.

I agree, I doubt if anything moves the market up for any length of time right now.

Out of the following:

GOOGL Nov3 126 Call at $1.35, up from $0.67 avg

Didn't mean to get out but order from last week was hit pretty quickly this morning. I will probably get back into GOOG or GOOGL if it drifts down again....

Just in the following:

CVX Nov3 146 CALL at $1.47

Should see some upside in the next day or two....

Out of the following:

UPS Nov10 137 CALL at $3.65 up from $1.35

May dip a little in the morning, so I might pick it up again....

I am on a mission to escape Death Valley....

not hard to set up combos like this that look like they can not lose money. In reality, as volatility drains from the options on an upmove, the trade's P/L looks different. As shown below with a global 4% reduction in iv's at expiry....



a large iv dump like that would only occur on a big up move, so the added call verts a/o long calls out the long tail...

CAN AAPL pop a 10+ pt move after the ER?

Added to the following:

CVX Nov3 146 CALL at $0.75 bringing the average cost down to $0.99

Just got out of the following:

EBAY Nov3 39 CALL at $0.64 up from $0.32

I still have EBAY Nov17 40 CALL at $1.10 active, but will probably get rid of it today or tomorrow....