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Let's Trade Options

  • #8,821
  • May 26, 2015 9:32am May 26, 2015 9:32am
Quoting The Fool
SPY & IWM verticals (closing orders) in one IRA acct below. I am looking for a red weekly candle, a SPY finish below $210, possibly to $208. Will buy out of May5 SPY $215/$217 and look to short more SPY call spreads out to Jun2.
Bought out May5 call spread for $0.05, shopping around....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,822
  • Edited 11:27am May 26, 2015 11:09am | Edited 11:27am
Quoting The Fool
Bought out May5 call spread for $0.05, shopping around....
Waiting for that btfd, if I could get a push back well above SPY $211, I would look to sell the Jun $215/$217. I am going to be away from the platform so I will likely just put in an order like.....

....Jun $215/$218 calls for $0.55 credit, good for the day
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,823
  • May 26, 2015 8:18pm May 26, 2015 8:18pm
Quoting StrayDog
{quote} Hi ZS. The thing is that most of that huge number of weekly trades are futures scalping, not options trading. Also, about Karen and tt crew in general... there are a "cheat sheet" for credit plays with 45 DTE: {image} It is from this video >> Optimizing Redeployment << I recommend it. Imagine that your credit spread, iron condor, short single option or whatever you got for credit "suppose" to lose 50% of value in 20 days. This is if u/l sits still and IV doesn't change. Now, imagine you have 50% in just...
This is an awesome little cheat sheet (which I've got on my desktop ) ... . Wish they'd post stuff like this more often or just in a single section ... . I've got to listen to Tom and Tony yak on for eons (entertaining, yes, but time-consuming) for these little "Market Measure" nuggets ... . It would also be helpful to have cheat sheets on general guidelines for strangles, verts, diagonals, calendars, etc. They have tips as to what they like to see for those strategies going through the live trades in various segments, but you've got to pour through an awful lot of video to get to them ... .

I'm finding enough high vol plays to put on a few strangles, which I have a fairly firm grasp on managing effectively, but the fare is extremely limited. Even some of the earnings plays don't involve enough vol to get into if you're working toward a $1.00 credit per trade ... . At some point, I'll quit being so lazy and start looking at defined risk trades for this low vol environment (don't like the POP for most of these set-up's, but you gotta take what you can get).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,824
  • May 26, 2015 10:17pm May 26, 2015 10:17pm
Like the June 19 SPY 215/218 short call vert, looking for a .54 credit fill.

Put on a short put vert as well, but skewed slightly to the downside with the same DTE at 202.5/205.5, hoping to fill for a .51 cred. I'm not incredibly keen on being bull SPY, but there's money to be made there if it doesn't totally implode ... .

I'm slightly negative delta right now, but that may change once my earnings strangles in ANF and KORS play themselves out. Probs should have skewed the ANF strangle slightly to the downside, as that is where the pressure is, but ... live and learn ... . Market price for the KORS play is right smack in the middle between my strikes going into earnings, so that looks fine ... for now. Couple other June 15 expiration strangles (high IVR plays at the time) are right on the dance floor (YOKU and VOD) -- literally pennies away from being ITM on the call side ... . Will roll up the put sides of those if their extrinsic value peters out to nothin'; still got some value left in them ... . The strangles are easy to manage, but they're BP vampires ... .

TLT continues to be a high vol bright spot ... . Short strangled that bitch at 114/130 for a 1.18 credit with 52 DTE. Could have gone June 15 118/127.50 for 1.11, but wanted to get something put on for July ... . Also looked at TBT, but couldn't squeeze enough credit out of it at or around 1 SD for the wings.

Looking at USO: with an IVR of 7, now's the time I need to look at a directional play there ... . May be a chance for me to slap on some positive delta ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,825
  • May 26, 2015 10:54pm May 26, 2015 10:54pm
Other commodity possibilities -- GLD and SLV, which have a gander at tomorrow ... . Both low IV and hammered down of late ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #8,826
  • May 26, 2015 11:43pm May 26, 2015 11:43pm
Quoting The Fool
{quote} Waiting for that btfd, if I could get a push back well above SPY $211, I would look to sell the Jun $215/$217. I am going to be away from the platform so I will likely just put in an order like..... ....Jun $215/$218 calls for $0.55 credit, good for the day
hey ZS, Jun calls $215/$218 I'd rather get >$0.60, can happen if SPY cops a little bounce Wednesday...if it gets a good bounce I will look at $2 spreads & up the lots
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,827
  • May 26, 2015 11:52pm May 26, 2015 11:52pm
Quoting ZebraSquirl
Like the June 19 SPY 215/218 short call vert, looking for a .54 credit fill. Put on a short put vert as well, but skewed slightly to the downside with the same DTE at 202.5/205.5, hoping to fill for a .51 cred. I'm not incredibly keen on being bull SPY, but there's money to be made there if it doesn't totally implode ...
actually I am on the other side of that sentiment, would rather play the grind up limits than risk the crash down possibility .... will feel better after the Greek drama chapter 23 blows over
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,828
  • May 27, 2015 12:30am May 27, 2015 12:30am
Quoting ZebraSquirl
Other commodity possibilities -- GLD and SLV, which have a gander at tomorrow ... . Both low IV and hammered down of late ... .
...yes, hammered....

http://www.valuewalk.com/2015/05/pre...-manipulation/
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,829
  • May 27, 2015 1:30am May 27, 2015 1:30am
I continue to look at calendars but not been trading them so much. Cause why? is because they are not so easy to trade, that's why. But sometimes, they work out. I paid $0.18 total for the double calendar on EWZ below. All calls. For many many days EWZ sat right in the dead zone of the calendar, around $37 .... but w/ a surge in USD strength EWZ has fallen and looks like it might look for the $32 sweet spot....I just need a little more time....it's in about 5c profit now, but it could get to $0.20+ net in the 1st 7 days of June if it will sit around $32, and I will cash it out if it does. No need to touch the $42 options, let them ride to worthless finish or an outside chance they can make something....
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,830
  • May 27, 2015 7:54am May 27, 2015 7:54am
Quoting The Fool
.. Also, paying comms to close a trade is not insignificant for those of us trading out of cash accounts. A 10-lot spread trade costs me $25 each side, so if I have only got $0.25 credit for the spread, comms eat 10% each side - sometimes I don't mind hanging in til expiry if I have other margin available to do the trades that I want to do and it's not too long of a wait. I know the above is wrong, though, and I am moving away from that bias. If I close out with most of the trade's profit in hand and immediately go into another profitable...
The costs are the same for me, on a Reg-T margin account. I think comms are the same for every account. Margin requirements are not, there is a HUGE difference there...

I just did my first /ES options bear call spread, June 2140/2150 for $3.20 CR, with /ES around 2107.50.
I paid $2.82 comms for it - pretty much like for SPY spread. Although I can enter that right now in pre-market, in this time there are absolutely nobody on midpoint.. same goes for /CL options.
Hope is dangerous in this game.
  • #8,831
  • May 27, 2015 8:00am May 27, 2015 8:00am
Quoting ZebraSquirl
{....They have tips as to what they like to see for those strategies going through the live trades in various segments, but you've got to pour through an awful lot of video to get to them ...

I hear you my friend, I have watched hundreds of tt videos, to extract the really good stuff.

Quoting ZebraSquirl
I'm finding enough high vol plays to put on a few strangles, which I have a fairly firm grasp on managing effectively, but the fare is extremely limited. Even some of the earnings plays don't involve enough vol to get into if you're working toward a $1.00 credit per trade ... . At some point, I'll quit being so lazy and start looking at defined risk trades for this low vol environment (don't like the POP for most of these set-up's, but you gotta take what you can get).
Yes, even with high VIX, some of the stocks just don't get enough juice. Usually those are the slow moving DJIA stocks. I took me months to extract those that are worthwhile... Tastytrade list of stocks are a good start. This is a usefull table.

Attached Image (click to enlarge)
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Hope is dangerous in this game.
  • #8,832
  • May 27, 2015 8:31am May 27, 2015 8:31am
Quoting The Fool
I continue to look at calendars but not been trading them so much. Cause why? is because they are not so easy to trade, that's why.
If you widen the calendar spread, you widen the profit zone at expiry, makes calendars more attractive....but you pay for that. I am on the fence re oil.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,833
  • May 27, 2015 8:54am May 27, 2015 8:54am
was looking for a bounce to sell SPY call spreads into, sold a Jun2 $215/$217 @22 deltas for $0.37, looking to get on a weekly regimen of SPY profits
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,834
  • May 27, 2015 9:06am May 27, 2015 9:06am
tried to sell a Jun $215.5/$218 for $0.48 as SPY was running to $212, slipping now, we'll see...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,835
  • May 27, 2015 10:06am May 27, 2015 10:06am
Quoting The Fool
tried to sell a Jun $215.5/$218 for $0.48 as SPY was running to $212, slipping now, we'll see...
holding off on new orders, waiting for the Greece tweets
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,836
  • May 27, 2015 10:12am May 27, 2015 10:12am
Quoting The Fool
{quote} holding off on new orders, waiting for the Greece tweets
June 215/217 is about $0.50 now

Isn't all that shit already calculated... I mean everybody is expecting a solution there... idk
Hope is dangerous in this game.
  • #8,837
  • May 27, 2015 10:36am May 27, 2015 10:36am
Quoting StrayDog
{quote} June 215/217 is about $0.50 now Isn't all that shit already calculated... I mean everybody is expecting a solution there... idk
kick the can will be no surprise, US equities rally and grind up into new incremental highs no surprise either, back to boring Fed cat/mouse routine
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,838
  • May 27, 2015 10:48am May 27, 2015 10:48am
Quoting The Fool
{quote} kick the can will be no surprise, US equities rally and grind up into new incremental highs no surprise either, back to boring Fed cat/mouse routine
Attached Image (click to enlarge)
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some things should be tight , but some better not...
Hope is dangerous in this game.
  • #8,839
  • May 27, 2015 10:51am May 27, 2015 10:51am
Quoting StrayDog
some things should be tight , but some better not...
that's a sick bar chart, the Fed better get to work on some new ath's
"If The Fool persists in his Folly he will become wise." - William Blake
  • #8,840
  • May 27, 2015 2:41pm May 27, 2015 2:41pm
Like an automaton, benumbed, I sell calls into SPY strength - June5 $217/$220 for $0.48
"If The Fool persists in his Folly he will become wise." - William Blake
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