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Let's Trade Options

  • #4,601
  • Aug 27, 2014 8:52am Aug 27, 2014 8:52am
Quoting StrayDog
.... YHOO bullish put spread 34/36 Sep19 for $0.64 credit ...
After reports of Alibaba profit rise, IV of YHOO options dropped hard.

That spread that I sold a few days ago for $0.64 credit, I bought it back now for $0.37, since it lost a big chunk of value in just a few days.

I am looking to do either that exact same 34/36 spread OR 33/36, but for Oct17 expiration, since those options has higher IV than Sep19 options.
Currently, you can get about $0.72-$0.74 credit for 34/36 Oct17, OR $0.99-$1.01 credit for 33/36 Oct17.

Technically, YHOO made a breakout from a range a few days ago (and from that falling channel), since it was trading from $33 to $37 for quite some time. Daily chart:
Attached Image (click to enlarge)
Click to Enlarge Name: YHOO daily chart.png Size: 67 KB
Hope is dangerous in this game.
  • #4,602
  • Aug 27, 2014 8:56am Aug 27, 2014 8:56am
Quoting StrayDog
{quote} After reports of Alibaba profit rise, IV of YHOO options dropped hard. That spread that I sold a few days ago for $0.64 credit, I bought it back now for $0.37, since it lost a big chunk of value in just a few days. I am looking to do either that exact same 34/36 spread OR 33/36, but for Oct17 expiration, since those options has higher IV than Sep19 options. Currently, you can get about $0.72-$0.74 credit for 34/36 Oct17, OR $0.99-$1.01 credit for 33/36 Oct17. Technically, YHOO made a breakout from a range a few days ago (and from that falling...
good job
  • #4,603
  • Edited 11:21am Aug 27, 2014 11:03am | Edited 11:21am
9/20 UVXY verticals. The $20/$22 credited $0.57. I thought $22 was a safe level, since UVXY seemed to be supported at $24. But it dipped to $23.20....another hot leg up in the equities might see UVXY threaten $22. I am watching this one and I may bail at b/e or a small loss.

The $18/$20 credited $0.59. I could close both legs and net about $0.57 right now. However, given the spikiness of UVXY, and the relentlessness of the bull market, I may look for a better yield on the $20, in hopes that UVXY may rise and fall and I then make something off the $18 after a little spike. I might change my mind on that, though.

Bid/ask spreads suck on UVXY, but rich premium makes up for that defect.
Attached Image(s) (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,604
  • Aug 27, 2014 11:30am Aug 27, 2014 11:30am
SPY diagonal. The idea here was SnP keeps grinding upwards, but $205 would be safe til 9/12, leaving me open for $210 til 10/18. I guess there's a slim chance that might work out well. I don't like selling options for low returns like this, as the only real upside (given my small size) is to let them expire. Anyway, SPY might tear up and I have to buy back 9/12 $205 for b/e or a small loss. SPY might pull back and I lose $0.03, woohoo. A low-risk trade either way as long as I manage it correctly in the former case.
Attached Image (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,605
  • Aug 27, 2014 11:32am Aug 27, 2014 11:32am
Quoting Cecil Gee
looking to take a gamma trade on GDX tomorrow for Fridays expiration, GDX closed $26.19 today and if we trade below that at the open then I'm looking to long puts $26 puts for 12c or lower or even $25.50 for 2c, I'm thinking gold wants to break 1277 and 72 to the downside Market Vectors Gold Miners ETF (GDX) -NYSEArca 26.19 {image} 0.57(2.22%) 21:00 |After Hours: : 26.14 {image} 0.05 (0.19%) 23:11 - Nasdaq Real Time Price
took the trade a little while ago, I am long puts on GDX $26 FOR 9C. GDX is trading $26.23 at the moment

GDX Aug 2014 26.000 put (GDX140829P00026000)
-OPR
0.09 https://s.yimg.com/lq/i/us/fi/03rd/down_r.gif 0.06(40.00%) 19:07
  • #4,606
  • Aug 27, 2014 11:34am Aug 27, 2014 11:34am
Quoting The Fool
Bid/ask spreads suck on UVXY, but rich premium makes up for that defect.
Yep, bid/ask spread sucks big time on UVXY... and light volume also. VXX got much better options.
Hope is dangerous in this game.
  • #4,607
  • Aug 27, 2014 11:44am Aug 27, 2014 11:44am
Quoting Cecil Gee
{quote} I'm gonna wait until september to do that trade, hope forl a little dip if it comes, certainly yahoo is on the rise as are some other old time nasdaq stocks
don't think I'm gonna get a sniff even in september to enter this bullish yahoo run
  • #4,608
  • Aug 27, 2014 11:49am Aug 27, 2014 11:49am
looking at GOOGLE to give me a gamma scalp for Fridays expiration, only puts, I'm eyeing up $570 puts for 10c or under if we finish under 581 and open under there tomorrow
  • #4,609
  • Aug 27, 2014 11:51am Aug 27, 2014 11:51am
Quoting StrayDog
{quote} ... I am looking to do either that exact same 34/36 spread OR 33/36, but for Oct17 expiration..
Re YHOO... I was thinking, and decided to first sell the short leg, since the stock is rallying now, and then later to add a long leg, thus taking more credit.
So, I sold the Oct17 36 put for $1.58 credit, two hours ago, and I am closer to buy 34, rather than 33 put and make a credit put spread.
Or, I will grow some balls and just live that as a naked put.

Wanted to make a IC on ANF, but gave up, since bid/ask spread is pretty wide... It took me more than hour to complete IC on BBY, buying/selling each of the 4 legs separately. I closed the short leg of remaining call credit spread on BBY today right after open for $0.02, taking the risk off... Earning season is almost over, but the next one is just around the corner, and I will be better prepared for it.
Hope is dangerous in this game.
  • #4,610
  • Aug 27, 2014 11:52am Aug 27, 2014 11:52am
Quoting StrayDog
{quote} Yep, bid/ask spread sucks big time on UVXY... and light volume also. VXX got much better options.
yep. it's true. As i said though, UVXY pays better.
Attached Image(s) (click to enlarge)
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,611
  • Aug 27, 2014 11:57am Aug 27, 2014 11:57am
Quoting Cecil Gee
looking at GOOGLE to give me a gamma scalp for Fridays expiration, only puts, I'm eyeing up $570 puts for 10c or under if we finish under 581 and open under there tomorrow
Didn't trade Google for a long time, just checked at Yahoo Finance, both tickers have options... so what are you eyeing than, GOOG or GOOGL
Hope is dangerous in this game.
  • #4,612
  • Aug 27, 2014 12:03pm Aug 27, 2014 12:03pm
Quoting StrayDog
{quote} Didn't trade Google for a long time, just checked at Yahoo Finance, both tickers have options... so what are you eyeing than, GOOG or GOOGL
GOOGL more trader friendly since the split with liquidity, also end of month repositioning going on
  • #4,613
  • Aug 27, 2014 12:09pm Aug 27, 2014 12:09pm
TLT $121/$122 diagonal. Doing what I want it to do, maybe a little too fast... TLT looks very hot. Eurozone bond yields dropping every day maybe pushing more trade into UST's. Bond vigilantes have left the building, I mean the planet. ^TYX 3.00% corresponds to TLT $120, we'll see if there's some resistance there. Really, Super Mario has the (financial) world by a string....sittin' on a rainbow...

P.S., I m/l broke even on the 9/20 $111 TLT puts, as I sold 3 legs of short puts against it over about 8 weeks. Pain inna ass to be on the wrong side of a trade....
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: 2014-08-27_tyx.png Size: 146 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,614
  • Aug 27, 2014 12:20pm Aug 27, 2014 12:20pm
Quoting The Fool
Really, Super Mario has the (financial) world by a string....sittin' on a rainbow...
If he doesn't come through, markets may be cross....

http://www.businessinsider.com/globa...-yields-2014-8
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,615
  • Aug 27, 2014 12:51pm Aug 27, 2014 12:51pm
snooze-a-rama market, SPY volume < half of avg, avg been falling for months anyway. Vacay season peak. Only bots and minions trading, everybody else at the beach, in the mountains. Total calm before storm feel to me. Long weekend coming up - remember markets closed next Monday, Labor Day. Have a good evening ya'll....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,616
  • Aug 27, 2014 9:46pm Aug 27, 2014 9:46pm
the beginning of the end?

http://www.examiner.com/article/petr...uan-and-rouble

"Aug. 27 will officially go down as a red letter day in the history of reserve currencies...

The days of the dollar remaining the global reserve currency took a sharp hit today, and the ramifications of Russia's new move for selling oil in both Roubles and Yuan are just beginning. And since there is over $17 trillion in U.S. dollars afloat and in nations outside the U.S. kept on reserve for the primary purpose of buying oil and natural gas, as more and more countries migrate to the East and find it far more inexpensive and efficient to no longer use the dollar and SWIFT systems to supply their energy needs, then these dollars will soon come crashing back to American shores, and the inflation America has exported offshore for decades will come rudely back and suddenly hit U.S. consumers and our financial system."
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,617
  • Aug 28, 2014 6:13am Aug 28, 2014 6:13am
Quoting Cecil Gee
{quote} GOOGL more trader friendly since the split with liquidity, also end of month repositioning going on
Thanks CG.

Just watched a good video (especially if you use ToS) about IV and IV rank ... examples in video are GLD, VXX, YHOO and LULU... by Liz and Jenny from tastytrade

August 26, 2014: All About IV & IV Rank
Hope is dangerous in this game.
  • #4,618
  • Aug 28, 2014 6:27am Aug 28, 2014 6:27am
Quoting The Fool
the beginning of the end? http://www.examiner.com/article/petr...uan-and-rouble "
Ah finally! The death of dollar! Yipeee, I got some Egyptian pounds leftovers from summer 2007, gonna buy a bunch of US dollars...
The cyclical thing... "EUR is dead"... "USD is gonna die"... "10 reasons why Gold should be 5,000"... "Market will crash 50-60%"...

Ok, no more joking. That IS something new. Russia strikes back. Say no to USD, say no to EUR...

Egyptian pounds, maybe? I can buy a cup of gasoline... a small cup, but hey...
Anyways, that time in Egypt... a doctor was driving me to the ATM, because I did not have the cash to pay him for examining my wife... So, we chat a little a long the way, in Hurghada...
He asked me: How much is litre of gasoline in your country, my friend?
I quickly calculated the price in Egyptian pounds and replied, and after that doctor dropped steering wheel and almost fainted...
Than he told me THEIR price... which was about 1/10 of what I was paying back then.
Than, after a while he asked me: Are your nation is wealthy?
I said: No, average monthly salary is like 350 EUR, and quickly grabbed that guys hand, so we would not crash...
He asked me: How do you afford to buy gasoline than?
Hope is dangerous in this game.
  • #4,619
  • Aug 28, 2014 6:38am Aug 28, 2014 6:38am
Can we please just go over 13...

Attached Image
Hope is dangerous in this game.
  • #4,620
  • Aug 28, 2014 6:56am Aug 28, 2014 6:56am
Quoting StrayDog
Ok, no more joking. That IS something new. Russia strikes back. Say no to USD, say no to EUR...
It could get interesting. The US invaded Iraq and Libya when their strongmen threatened to get off the petrodollar, but Russia and China will do what they want.
"If The Fool persists in his Folly he will become wise." - William Blake
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