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Let's Trade Options

  • #7,641
  • Mar 11, 2015 11:54pm Mar 11, 2015 11:54pm
So, I did not know until I started trading SPY options heavily some months ago that SPY has "quarterly" options - yes, options that expire on the last trading day of each quarter. And so, coming up we have Mar5 = Mar 31 (the last trading day of Q1), 2 weeks from next Tuesday, and Apr1 (Apr 3rd) - 2 weeks from next Friday. The difference between Mar5 and Apr1, then, is 3 trading days. And so and so, with only 3 dte difference, the options between these two expiries should have fairly close pricing at common strikes, no? They do.

So what? So you can get in some cheap Mar5/Apr1 spreads! Cheap spreads!

The SPY $194/$201 puts double calendar debits $0.26, does not have huge r:r, but does have a wide profit zone, with b/e's between $190.40 and $204.00 at expiry...
Attached Image (click to enlarge)
Click to Enlarge Name: 2015-03-11_spy.png Size: 77 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,642
  • Mar 12, 2015 1:23am Mar 12, 2015 1:23am
Quoting The Fool
So, I did not know until I started trading SPY options heavily some months ago that SPY has "quarterly" options - yes, options that expire on the last trading day of each quarter.
Quarterlies are available on SPY, IWM, XLE, SPX, QQQ, DIA, XSP, and XEO
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,643
  • Edited 7:30am Mar 12, 2015 7:12am | Edited 7:30am
Quoting The Fool
{quote} Could BABA fall $5-$10 in a week?....fall all the way back down to the IPO set, $68?...a Mar4/Apr1 $70 put calendar debits $0.06, has upside expiry b/e @ $77.65 {image}
Using this rise in BABA price for this, I bought a few of those for $0.05 db.

Here is how it looks like on dough

Attached Image (click to enlarge)
Click to Enlarge Name: BABA-70-put-calendar.PNG Size: 408 KB


Add-on
I started scalping stocks with stocks CFDs... So I made some money yesterday on BABA short, and used 1/2 of it to finance this calendars. That is a good thing.
Not so good thing is that you can't close stocks CFDs in premarket or after-hour, ONLY in RTH, just like options. I found that today, when I tried to close my URBN CFDs short position... which was finally positive in premarket. Managed to close the mofo in first seconds after open for small profit, like 40% of what I had just 15 minutes prior.
Hope is dangerous in this game.
  • #7,644
  • Mar 12, 2015 7:22am Mar 12, 2015 7:22am
Quoting StrayDog
Using this rise in BABA price for this, I bought a few of those for $0.05 db.
Hey, SDog - I checked that again and I only saw a $0.09 mid - you drove up the price!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,645
  • Mar 12, 2015 7:26am Mar 12, 2015 7:26am
Quoting The Fool
I bought a small SPY bull vertical scalp, $207/$207.5 calls for Friday for $0.11
Looking for $206.50 today and maybe get out of this w/ a near double....might be asking too much.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,646
  • Edited 9:18am Mar 12, 2015 7:43am | Edited 9:18am
Quoting The Fool
{quote} Hey, SDog - I checked that again and I only saw a $0.09 mid - you drove up the price!
Yes I did, haha... Filled very quickly also... Do you see volume on those calendars on your platform?

Because sometimes that number is pretty crazy... like no volume, then I buy 10 spreads of something, and then volume is just 2...


add-on
Deutsche Bank reiterated Alibaba (BABA) coverage with Buy rating and price target $98 ()
Previous price target: $105.1
Hope is dangerous in this game.
  • #7,647
  • Mar 12, 2015 10:04am Mar 12, 2015 10:04am
Brazil is as I said before, a total FUBAR now... Strong USD, weak real... but things can change... and most probably will. But when?

Well, if some stocks, like PBR or BAK or something else drop to the really really low levels like those on this chart... just buy a shitload of it under $1 and wait.
Hero or zero. Zero meaning company bankruptcy off course.

Attached Image (click to enlarge)
Click to Enlarge Name: Braskem-W.PNG Size: 139 KB
Hope is dangerous in this game.
  • #7,648
  • Mar 12, 2015 10:44am Mar 12, 2015 10:44am
Thinking about selling premium on BBRY... it trades about $9.93 now... IVR 56
So I am thinking about selling Apr 9 puts with 36 DTE for $0.36, OR Apr24 8.5 puts with 43 DTE for $0.26...

If SPX goes down again (would short it from 2067 but it just stands here on 2059...), my choices for day trades on short side would be BABA, (YHOO) TWTR... out of higher priced stocks AMZN, NFLX...

Check-out the PA on ACAD... Ouch... rude awakening for those who bought the stock 2 days ago...
Hope is dangerous in this game.
  • #7,649
  • Mar 12, 2015 11:26am Mar 12, 2015 11:26am
Quoting The Fool
Looking for $206.50 today and maybe get out of this w/ a near double....might be asking too much.
you just chase the b/e point every day you hold a vertical spread, so if you get good return it's maybe best to take it today, because tomorrow it will have eroded, unless your u/l rallies on up. This SnP move looks strong and like it will have legs to close the week higher, but I will cash out of $207/207.5 calls today if SPY can rally higher into the last hour...just a small winner.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,650
  • Mar 12, 2015 11:29am Mar 12, 2015 11:29am
Quoting StrayDog
Deutsche Bank reiterated Alibaba (BABA) coverage with Buy rating and price target $98 () Previous price target: $105.1
OK DB, maybe we buy some calls after it crashes lower in March

I am trying to fill that $170 puts calendar for $0.06, sitting on $0.08 mid, not looking too good...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,651
  • Mar 12, 2015 11:49am Mar 12, 2015 11:49am
selling UVXY or VXX puts comes back into view as ^VIX is falling...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,652
  • Mar 12, 2015 11:51am Mar 12, 2015 11:51am
FXCM talks AH today, I have already started thinking about how I'm gonna spend all that pocket money...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,653
  • Mar 12, 2015 11:58am Mar 12, 2015 11:58am
Quoting The Fool
FXCM talks AH today, I have already started thinking about how I'm gonna spend all that pocket money...
Slot machines in Vegas?

Anyways... I did this exact trade a few days ago.. but credit was smaller then.
Attached Image (click to enlarge)
Click to Enlarge Name: USO-17put.PNG Size: 45 KB


Crude was very weak today... it is struggling to be above $47 now... USO about $17.46...
Hope is dangerous in this game.
  • #7,654
  • Mar 12, 2015 12:01pm Mar 12, 2015 12:01pm
Quoting The Fool
{quote} you just chase the b/e point every day you hold a vertical spread, so if you get good return it's maybe best to take it today, because tomorrow it will have eroded, unless your u/l rallies on up. This SnP move looks strong and like it will have legs to close the week higher, but I will cash out of $207/207.5 calls today if SPY can rally higher into the last hour...just a small winner.
Out for a $0.10 gainer. I think I would've made a little more tomorrow, but not sure enough...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,655
  • Mar 12, 2015 12:04pm Mar 12, 2015 12:04pm
Quoting StrayDog
Crude was very weak today... it is struggling to be above $47 now... USO about $17.46...
see what a little show of USD weakness can do? I was gonna be doing some more long dated fotm USO calls calendars but willing to hold off & maybe get em cheaper....or push em out into Q3....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,656
  • Mar 12, 2015 12:14pm Mar 12, 2015 12:14pm
Quoting The Fool
{quote} OK DB, maybe we buy some calls after it crashes lower in March I am trying to fill that $170 puts calendar for $0.06, sitting on $0.08 mid, not looking too good...

filled @ $0.06, and I put on a GTC for $0.80!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,657
  • Mar 12, 2015 12:15pm Mar 12, 2015 12:15pm
Quoting The Fool
{quote} Out for a $0.10 gainer. I think I would've made a little more tomorrow, but not sure enough...
Good job... SnP on interesting place right now... testing previous S/R level... also a fibo levels are right there... This is a place where you would close your longs... I opened a short at 2065... lets see. Exhaustion on lower time frames, like 30 / 60 / 120 minutes.

Quoting The Fool
{quote} filled @ $0.06, and I put on a GTC for $0.80!
That's the spirit!
Hope is dangerous in this game.
  • #7,658
  • Edited 12:31pm Mar 12, 2015 12:19pm | Edited 12:31pm
Quoting StrayDog
Slot machines in Vegas? Anyways.....
nah, we have em here, most of the Indian reservations have casinos

re: USO, maybe I've been wrong to think WTI will bounce this year....maybe it'll just be a replay of the natgas slump - ie, a slump that just keeps slumping...so, anyway, I am looking at Jul/Jan spreads now, I think I showed one above - the $28 calls Jul/Jan is $0.23 now....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,659
  • Mar 12, 2015 12:33pm Mar 12, 2015 12:33pm
Quoting StrayDog
SnP on interesting place right now... testing previous S/R level... also a fibo levels are right there... This is a place where you would close your longs... I opened a short at 2065... lets see. Exhaustion on lower time frames, like 30 / 60 / 120 minutes.
SnP looking strong, I need to get it into the expiry week (next week!) for the pile of $210/$211 call diagonals I have running, want to take those to FOMC day anyway....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #7,660
  • Mar 12, 2015 12:43pm Mar 12, 2015 12:43pm
I sat around thinking about trading LL, just have had too many irons in the fire...it bounced $10 in 3 days
Attached Image (click to enlarge)
Click to Enlarge Name: 2015-03-12_ll.png Size: 108 KB
"If The Fool persists in his Folly he will become wise." - William Blake
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