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  • #4,781
  • Sep 11, 2014 11:38am Sep 11, 2014 11:38am
Draghi on tap, see if he can shoot another hole in the euro hull.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,782
  • Sep 11, 2014 11:58am Sep 11, 2014 11:58am
It's coming: be afraid....no, be ready.

http://finance.yahoo.com/news/invest...141500708.html

"It is fantasy to believe that after enjoying short-term interest rates near 0 percent since 2008, the economy won't suffer ill effects as rates drift higher and the Fed pulls excess cash out of the capital markets."
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,783
  • Sep 11, 2014 12:05pm Sep 11, 2014 12:05pm
High-yield dumping, again.

"Credit anticipates, equity confirms." - Paracelsus
Attached Image (click to enlarge)
Click to Enlarge Name: 2014-09-11_hyg.png Size: 62 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,784
  • Sep 11, 2014 12:19pm Sep 11, 2014 12:19pm
Quoting Cecil Gee
GDX 24 call is the trade I'm eyeing up for tomorrows expiration. I'd like the option price to fall to around 6c near closing day, at the moment its trading for 12c GDX Sep 2014 24.000 call (GDX140912C00024000) -OPR 0.12 {image} 0.18(60.00%) 18:06 GDX is trading at 23.83 as of now
missed out on the above trade because it bounced with GDX trading at $24.22 now and the option up to 26c

GDX Sep 2014 24.000 call (GDX140912C00024000)
-OPR
0.23 https://s.yimg.com/lq/i/us/fi/03rd/down_r.gif 0.07(23.33%) 20:00
  • #4,785
  • Sep 11, 2014 12:51pm Sep 11, 2014 12:51pm
Quoting Cecil Gee
gamma scalp trade entered for Fridays expiration IWM short while ago long $116.50 call for 16c. IWM is trading fat 115.82 iShares Russell 2000 (IWM) -NYSEArca 115.82 {image} 0.64(0.56%) 18:20 - Nasdaq Real Time Price IWM Sep 2014 116.500 call (IWM140912C00116500) -OPR 0.16 Down 0.05(23.81%) 17:58
my option trading above 40c, i had bought for 16c yesterday, looking to close for a good profit

IWM Sep 2014 116.500 call (IWM140912C00116500)
-OPR
0.41 https://s.yimg.com/lq/i/us/fi/03rd/up_g.gif 0.19(86.36%) 20:27
  • #4,786
  • Sep 11, 2014 1:03pm Sep 11, 2014 1:03pm
Quoting Cecil Gee
after closing the vertical put spread on apple for a small loss, I'm considering entering the reversal long call spread providing it can close above 100.60 long the 101 call for around $2 and write the $104 for around $1 for a net debit of a $1 and for 26 SEP expiration. Current APPL stock price is $100.59 Apple Inc. (AAPL) -NasdaqGS 100.59 {image} 2.60(2.65%) 18:34 - Nasdaq Real Time Price AAPL Sep 2014 101.000 call (AAPL7140926C00101000) -OPR 2.00 0.00(0.00%) 18:05 AAPL Sep 2014 104.000 call (AAPL140926C00104000) -OPR...
AAPL heading the right way
  • #4,787
  • Sep 11, 2014 2:18pm Sep 11, 2014 2:18pm
Quoting Cecil Gee
{quote} my option trading above 40c, i had bought for 16c yesterday, looking to close for a good profit IWM Sep 2014 116.500 call (IWM140912C00116500) -OPR 0.41 {image} 0.19(86.36%) 20:27
Good one, Cecil. When you do these scalps on the weeklies, what's the latest day you will usually enter? what is the ideal range of dte? Is your m.o. to look for option price pretty close to a strike and then play for a move into profit beyond it? If so, how far away from strikes do you consider too far?

I know you've been over some of this before, hope you won't mind indulging me....to refresh my memory.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,788
  • Sep 12, 2014 12:20am Sep 12, 2014 12:20am
The Scottish Disease? Sounds grim....

https://www.tradingfloor.com/posts/3...retail-1601420

Spanish 10y bond yields have been rising for last few days as Catalonians protest for a(nother) referendum for independence from Spain. They've been emboldened by the Scots, I'm sure. Also today the EU begins new sanctions on Russia, who may retaliate, of course...unintended consequences plenty to go around.

So, not looking too great on the other side of the pond. Will all that mean a nudge away from the Eurozone sovereign debt in favor of UST's? Maybe. Things never as simple as one might like to make them, though.

Nevertheless, I'm looking for TLT to bottom and may be selling bull put spreads. Or I may wait till after the FOMC next week (same day as the Scottish vote, oh boy) to see what's what...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,789
  • Sep 12, 2014 12:55am Sep 12, 2014 12:55am
http://www.forbes.com/sites/kenrapoz...rtner=yahootix

If Ken is right, EWZ should bounce
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,790
  • Edited 6:23am Sep 12, 2014 6:09am | Edited 6:23am
http://www.bloomberg.com/news/2014-0...tml?cmpid=yhoo

"The banks running the sale expect to sift through orders this weekend, to decide if they can raise the price range for the IPO or increase the number of shares they plan to offer, the people said."

YHOO pushing past $41.50 pre-market...it should ramp up into BABA's opening day, spike when the BABA shares bidding war gets underway.

Of course, if the ipo corresponds with a market dump on a rocky FOMC....why does everything have to be so complicated? Anyway, if the above scenario holds true I will probably buy out of $38 and $38.50 short puts before the ipo...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,791
  • Sep 12, 2014 9:36am Sep 12, 2014 9:36am
Quoting The Fool
{quote} Good one, Cecil. When you do these scalps on the weeklies, what's the latest day you will usually enter? what is the ideal range of dte? Is your m.o. to look for option price pretty close to a strike and then play for a move into profit beyond it? If so, how far away from strikes do you consider too far? I know you've been over some of this before, hope you won't mind indulging me....to refresh my memory.
T.F. i normally like to enter Wednesday onwards in fact even on the last day of expiration when there is very little premium left in the option on weekly options.

Yes I like to look to the nearest OTM strike and then look for Gamma to take the price beyond that strike price and finally depending on how volatile a stock is will depend how far out I go with expiration which will come down to its average daily range
  • #4,792
  • Sep 12, 2014 9:46am Sep 12, 2014 9:46am
classic Gamma end of week trade on EBAY, opening price of option was 3c and the high it went to was $1.50 so $3 per contract became $150 per option contract and currently trading for 75c or $75 per contract, these are the last day gamma scalps I hunt for

EBAY Sep 2014 51.500 call (EBAY140912C00051500)
-OPR
0.75 https://s.yimg.com/lq/i/us/fi/03rd/up_g.gif 0.72(2400.00%) 17:13

Prev Close:0.03
Open:0.03
Bid:0.60
Ask:0.79
Strike:51.50
Expire Date:12-Sep-14
Day's Range:0.03 - 1.50
Contract Range:N/A - N/A
Volume:2,887
Open Interest:1,028
  • #4,793
  • Sep 12, 2014 9:57am Sep 12, 2014 9:57am
Quoting Cecil Gee
{quote} i may go for a bull call spread to reduce my cost, if it does spike to $45 it will still make me over 250% profit on a long $40.50 and write $43.50, debit around 90c, IV is so high. I will think about this
Yahoo is trading at $42.76 and I think we shall a bigger spike by Wednesday as that may be the last day to apply for the hotly awaited ALIBABA IPO

Yahoo! Inc. (YHOO)
-NasdaqGS
42.76 https://s.yimg.com/lq/i/us/fi/03rd/up_g.gif 1.50(3.64%) 17:56 - Nasdaq Real Time Price
  • #4,794
  • Sep 12, 2014 10:08am Sep 12, 2014 10:08am
Quoting Cecil Gee
{quote} T.F. i normally like to enter Wednesday onwards in fact even on the last day of expiration when there is very little premium left in the option on weekly options. Yes I like to look to the nearest OTM strike and then look for Gamma to take the price beyond that strike price and finally depending on how volatile a stock is will depend how far out I go with expiration which will come down to its average daily range
Thanks, did you get that EBAY?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,795
  • Sep 12, 2014 10:12am Sep 12, 2014 10:12am
Quoting Cecil Gee
{quote} Yahoo is trading at $42.76 and I think we shall a bigger spike by Wednesday as that may be the last day to apply for the hotly awaited ALIBABA IPO Yahoo! Inc. (YHOO) -NasdaqGS 42.76 {image} 1.50(3.64%) 17:56 - Nasdaq Real Time Price
YHOO been basically a free money deal on the bear put spreads. I was late getting in those but even so have a few that will pay well by early next week so long as it stays elevated.

Not so sure about a post-ipo spike though - would feel better about it if it were set sometime other than right after the FOMC. But maybe that's by design, no? - are they counting on a Yellen lift for the indices?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #4,796
  • Sep 12, 2014 10:14am Sep 12, 2014 10:14am
Quoting The Fool
{quote} Thanks, did you get that EBAY?
YES, but not that kind of profit I made 300 % closed very quickly I suppose at such cheap prices I should just let it run and see what happens
  • #4,797
  • Sep 12, 2014 10:17am Sep 12, 2014 10:17am
Quoting The Fool
{quote} YHOO been basically a free money deal on the bear put spreads. I was late getting in those but even so have a few that will pay well by early next week so long as it stays elevated. Not so sure about a post-ipo spike though - would feel better about it if it were set sometime other than right after the FOMC. But maybe that's by design, no? - are they counting on a Yellen lift for the indices?
whatever move happens Tuesday should be the last day then expect IV crush, I'm liquidating my position on Tuesday if not Monday
  • #4,798
  • Sep 13, 2014 8:35am Sep 13, 2014 8:35am
Quoting StrayDog
{quote} Hi djambazov84, I would like to ask a question. Hey njr, you are a option seller, would like to hear your opinion also, and of course TF and Cecil Gee you are most welcome... Please be patient here. It is about managing a short strangle. In tastytrade video I just watched yesterday, Tom Sosnoff was explaining what to do in some of situations with short strangle. this is the video http://www.tastytrade.com/tt/shows/w...e=social-share...
Hey SD - I haven't seen this video before but I think the Tasty Trade general approach is to 'manage the winners' rather than 'managing to loosers'. Are they suggesting to just accept the risk for the inverted position (with rolling up the untested side) and that you could be assigned or is there a specific technique they suggest? I know they also reinforce trading the appropriate position sizes so that if you are assigned or positions are rolled then the account is not blown up as a consequence. With my trading approach, I NEVER let a position get 'inverted' - I will roll around a delta around 0.25~0.4ish depending on where I think the market might move. If needed I will re-roll again, etc, etc.....I certainly would not take ANY risk of being assigned which is obviously what could happen if my position goes ITM.
  • #4,799
  • Edited 9:35am Sep 13, 2014 8:46am | Edited 9:35am
Quoting Cotx-325
Hello I'm new to options and would like to learn a lot. For a beginner, what option book would you recommend me to start with? I need to learn all I can . I'm aware of call and put options but need more knowledge then that. Please help thanks.
If you want to look at selling options and receiving the premium from this, the Tasty Trade site that The Fool suggested is great. In terms of reading material for options selling, one of the best books I found was this:

http://www.amazon.com/s/?url=search-...+Michael+Gross


The principles in this book can be applied to any asset class (indexes, currencies, commodities, etc)....

Welcome to the exciting (and highly profitable) world of options trading!
  • #4,800
  • Sep 13, 2014 8:57am Sep 13, 2014 8:57am
Great to see that Vol is coming back to the market. Finally some opportunities and I've recently sold some weekly PUTs in ES mini around 0.04 delta. With Vol climbing the premium is looking reasonable.......

I'm still playing cautious given the general market chatter about the impending correction....I wonder what will be the catalyst.....FOMC this coming week and the language used, a statement on when US rates will rise, bad China data published today, geopolitical risk, or something else?????......so many choices. When this market drops in free fall mode, I'm selling the ES mini futures big time!!!!!!
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