Let's Trade Options

Well, I missed the close today and wanted to be back about an hour before, but it just wasn't meant to be. But I will be looking at the following before the bell, and depending on what pre-market action is there should be several plays from this list. A few of them aren't quite ready by my charts, but the market conditions Monday may make them do their thing early or make some of these better buys at a better strike price. All of these will be looked at for the Feb16 expiration.

AFL 77 CALL
CHRW 75 CALL
CLX 155 PUT
COR 230 PUT
DGX 125 CALL
GRMN 120/125 CALL
KLIC 47 CALL
SKX 57.5 CALL
SQM 42.5 CALL
UPS 143 CALL

There are a few more out there, but they are what I would consider too expensive. I like options less than $2 if possible, and really like them less than $1. I normally go with a minimum or 25 contracts, and normally 25, so over $2000 is more than I like to spend. If I'm gonna spend $2000+ I want 50+ contracts (maybe even 100). Those cheap ones are great, because at 100 contracts, every $0.10 move in the option price is $1000 profit, and there is nothing sweeter than to have 100-300 contracts and the option moves up over $1!! I've never minded paying short term capital gains tax because that always meant I was making money!

Anyway, we will see what next week holds for the stocks above. there is money to be made in them, you just have to peer through the fog to see which ones.

what will RUT do in the next 2-3 weeks? I have learned to put these on with more time, for zero debit or small credit, and plan on taking them off at least several days before expiry. I might hedge the put side....

3 week target for RUT is about 1775...will continue to fall hard if rates stay northbound. Trying fill Feb 23/26 1775 calendar puts for 60c debit.

,,,,all filled some at 1780 for 61c or less...video shows how calendar p/l changes over time

Well, today was a very busy morning. Had lots of Bids changing around, but was able to get into the following:

SQM Feb16 40 CALL at $0.90

SKX Feb16 57.5 CALL at $1.05

CHRW Feb16 72.5 CALL at $1.35

I am trying to split the bid/ask on the following, no luck so far. May bump up to the Ask of $1.25 before the close. :

AFL Feb16 76 CALL at $1.20

I had Bids in for CLX and COR but they never got hit, so I got into some slower movers. I'll still be watching these two, though, and kept the Bids open anyway, in case they go back up today.

It was just a busy day overall today.

Out of the following:

SKX Feb16 57.5 CALL at $2.00 up from $1.05. Had the sell order in more as a placeholder, I didn't expect the price to nearly double today, but I am not one to complain about making money! But at the pullback, I got back in.....

In the following:

SKX Feb16 57.5 CALL at $1.60

SKX Feb16 60 CALL at $0.45

Chart looks really good so I am using these to see if in-the-money options return more than out-of-the-money options. Both should make money, and even though the Delta is twice for the 57.5 CALL, the cost is over three and a half times the 60 CALL, so you can buy a LOT more contracts at the lower price. Since the Greeks can change rapidly when the stock is moving, you can't always just calculate what you should make at a given price.

AFL Feb 16 76 CALL at $1.20 (was finally hit)

Still in the following:

SQM Feb16 40 CALL at $0.90

CHRW Feb16 72.5 CALL at $1.35

All of these should make some spending money!

Busy morning again today, but I am...

Out of the following:

DD Feb16 65 CALL at $1.40 up from $0.712 average

DD Mar15 62.5 CALL at $3.50 up from $1.40

SQM Feb16 40 CALL at $2.00 up from $0.90

SKX Feb16 57.5 CALL at $1.65 up from $1.05

CHRW Feb16 72.5 CALL at $3.20 up from $1.35

Probably a little more upside to a couple of these, but I'm good with a day like today.

I still have AFL Feb16 76 CALL at $1.20 open, but expect it to move closer to $78 in the next day or two, so I'll wait a little longer for this one.

I was planning to use the two SKX trades to do a little theory-to-practice on ITM/OOM trades, but the 60 strike price didn't get close enough to do anything with, so I have a bid out for more of the following:

SKX Feb16 60 CALL at $0.25, which if it gets hit (and it should before the close) will bring the average down to $0.32

I also have a Hail Mary Bid in for:

SKX Feb16 57.5 CALL at $0.95, but I doubt that gets hit.

Well, it got hit so I am In the following:

SKX Feb16 60 CALL at $0.25, which if it gets hit, bringing the average down to $0.32

Okay, the Hail Mary got hit, so I'm in the following:

SKX Feb16 57.5 at $0.95

So now, since I also have the the SKX Feb16 60 CALL at $0.32 average, we can see what the difference is going to be when they head back north again. But it needs to get to $60 or at least close to be able to compare apples-to-apples.

Both should make some money. If it gets above $60, the payoff will be extremely good on the out of the money trade simply because I have more contracts.

Nice little bump up today, so I'm out of the following:

AFL Feb16 76 CALL at $2.90 up from $1.20

Doesn't even show up as the high for today or in the TOS list. Just goes to show, you can't always take what shows on your screen as everything that has transpired or is the only Bid/Ask prices available (though that is normally correct). So you need to stick those Bids/Ask prices out there because they often get hit and it's oblivious to what's on the screen in the Level II quotes.

There are a few worth looking at in the morning pre-market. I'll see what they are doing and what the overall market is doing and may get into a couple:

BERV Call
CCK Call
CHTR Call
ETN Put
LVS Put
RMBS Call

There are some more but either the options were wayyyyy too expensive or the spread is just too large to make it a good play.

Out of the following:

SKX Feb16 57.5 CALL at $$1.15 up from $0.95

I guess I'm going to have to find another stock to compare ITM/OTM trades with, this one is kinda petering out.

In the following:

LVS Feb23 54 PUT at $1.11

ETN Feb16 270 PUT at $1.55

CHTR Feb16 300 CALL at $1.20

All of these were Hail Mary Bids, but I was able to play around with the LVS Bid a little to save a few pennies.

Having a Put and Call trade at the same time will test how good my charts are at telling me what's what....

I have another Hail Mary Bid in for the following:

LVS Feb23 53 PUT at $0.65

If it does get hit, maybe this paired with the 54 Put I have will be a good ITM/OTM comparison....

In the following:

BERY Feb16 57.5 CALL at $0.30

Chart looks good, candles look a little 'iffy', but I'm going with the chart.

...rolled up same date to 1850 for an added 35c debit today

https://www.forexfactory.com/attachm...3?d=1706902095.....closed it all today for $1.50, a good double