Let's Trade Options | Page 511 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

BELLA SYSTEM. Let's try it, let's improve it! 118 replies

Let's Trade The News V 0.4 ! 479 replies

Any Options, Bull Options & Option Bit 39 replies

Let's Trade The News! 46 replies

Let a trade develop? 17 replies

Attachments: Let's Trade Options
Exit Attachments

Let's Trade Options

  • #10,201
  • Aug 17, 2015 8:58pm Aug 17, 2015 8:58pm
Ho-hum day, really ... . Volatility has bled out of the index ETF's a bit in light of Friday's and today's price action, leaving me pretty much sitting on my hands, although I attempted (again unsuccessfully) to get fills on a TLT IC with a bit of increased volatility there and an FXE short call vert (Oct 2nd expiry) ... . I set them up the Sunday night, was biz most of the day, so it's really no surprise they didn't get filled.

I considered slapping some SPY short call verts on here with short call strikes above the YTD high (something like 214/217 short call verts, maybe 213.5/216.5), but want to see if there is some kind of continuation from Friday's and today's bullish movement to do that ... . Some days last week were very whippy, so a short-term thrust to test 2114 is not out of the question (the .764 Fib for the mid-March to present range between 2040 and 2137), and I would think it would be a perfect place to add short call verts. That being said, these little upward thrusts have been extremely fleeting and of intraday nature of late ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,202
  • Aug 17, 2015 9:00pm Aug 17, 2015 9:00pm
Quoting The Fool
{quote} SNOOZE
Lol ... . Was posting my own "schnoozer" post as you posted yours ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,203
  • Aug 18, 2015 2:26am Aug 18, 2015 2:26am
Quoting ZebraSquirl
{quote} Lol ... . Was posting my own "schnoozer" post as you posted yours ... .
SHCOMP dipping > 6%, maybe that'll get the bots running hot.....doubt it....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #10,204
  • Edited 3:17am Aug 18, 2015 2:52am | Edited 3:17am
Quoting The Fool
{quote} I did the 1-week USO $13/$15 strangle for 7c. Not seeing /CL move much yet..... ...I'll need /CL >$46 or <$39 by Friday just to b/e......
note to self, USO sucks, no movement in /CL, all the hype about big moves on opex was shyte, volume weak, I'm a victim of advertising, fool me once, etc.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #10,205
  • Aug 18, 2015 3:34am Aug 18, 2015 3:34am
Quoting The Fool
{quote} SHCOMP dipping > 6%, maybe that'll get the bots running hot.....doubt it....
Should be good for my AAPL puts, in which I doubled my position late yesterday.
I have no clue what I'm talking about.
  • #10,206
  • Aug 18, 2015 9:14am Aug 18, 2015 9:14am
Quoting Boy Wonder
OK I'm back on the short ES train again. But rather than short the calls - which is expensive in margin terms - I'm long a couple of Dec 18 2000Ps. I'm not really big on buying options but I'm also not big on getting caught with my pants down selling naked options either. ....
Hey BW. Yep, margin for naked calls is huge... Why not sell wide call spreads instead? I sell 30 points wide for now on /ES futures options, but I am pretty sure that wider is better.
Hope is dangerous in this game.
  • #10,207
  • Aug 18, 2015 11:29am Aug 18, 2015 11:29am
Low volatility environment makes quick work for me with the bread-and-butter index trades ... . Moving along; nothing to see here.

Did fill a TLT iron condor (115/118/130/133 Sept 25 expiry) for a .51 credit. Still a little volatility there ... .

Trying to get an FXE 112/115 short call vert (Oct 2nd expiry) as FXE comes off that 110 high put in last week is getting increasing unproductive; mid's currently at .25. Best to wait for another bounce or for a later expiry to open ... .

Briefly glanced at potential UVXY long or SVXY short here ... . With SVXY, a 97/100 short call vert, Aug 28 expiry will get you an .88 credit at the mid, a 98/101, .68 at the mid ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,208
  • Aug 18, 2015 11:41am Aug 18, 2015 11:41am
Went a little more high POP on the SVXY short ... . A 98/101 short call vert, Aug 28 expiry for .68, which filled immediately.

Also looking for a fill on a 99/102 Sep 4 short call vert for .90 ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,209
  • Aug 18, 2015 11:58am Aug 18, 2015 11:58am
Quoting ZebraSquirl
Went a little more high POP on the SVXY short ... . A 98/101 short call vert, Aug 28 expiry for .68, which filled immediately. Also looking for a fill on a 99/102 Sep 4 short call vert for .90 ... .
Actually went for a 98/101 Sept 4 short call vert for .98, which got filled. Will look to take those off at near max profit ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,210
  • Aug 18, 2015 12:06pm Aug 18, 2015 12:06pm
Quoting StrayDog
{quote} Hey BW. Yep, margin for naked calls is huge... Why not sell wide call spreads instead? I sell 30 points wide for now on /ES futures options, but I am pretty sure that wider is better.
Hey Stray....do you mean for example selling a 2100/2130 call spread?
I have no clue what I'm talking about.
  • #10,211
  • Aug 18, 2015 12:15pm Aug 18, 2015 12:15pm
Quoting Boy Wonder
OK I'm back on the short ES train again. But rather than short the calls - which is expensive in margin terms - I'm long a couple of Dec 18 2000Ps. I'm not really big on buying options but I'm also not big on getting caught with my pants down selling naked options either. I think equities are going to struggle here. If I'm right, we should at least see a test of the bottom of the range. If I'm wrong, then TF is probably right and a tag of the 2135-ish area is probably on the cards, in which case, the plan as it stands would be to add another 2000P...
Well, more conservative it is, but it's also far less fun when you get it right. I'm sitting on 4 ES 2000P's and with ES down about 12-15 points on where I sold them (2097-2100-ish) I'm in profit by a miserable $194. Not a lot of return for sitting on 8.4K's worth of puts!!! I don't much like this; at this rate I'd have been better off just selling a single ATM call. Or maybe that's my problem: too greedy and too impatient in equal measure.
I have no clue what I'm talking about.
  • #10,212
  • Aug 18, 2015 12:20pm Aug 18, 2015 12:20pm
Quoting Boy Wonder
{quote} Well, more conservative it is, but it's also far less fun when you get it right. I'm sitting on 4 ES 2000P's and with ES down about 12-15 points on where I sold them (2097-2100-ish) I'm in profit by a miserable $194. Not a lot of return for sitting on 8.4K's worth of puts!!! I don't much like this; at this rate I'd have been better off just selling a single ATM call. Or maybe that's my problem: too greedy and too impatient in equal measure.
Duh, I've just realised that's not so. They're December puts so it's December that's at 2085, not September. Sept is down about 6 points so, yeah, $194 on a 4-6ish point drop in the U/L, I can live with that. Better than a poke in the eye with a sharp stick.
I have no clue what I'm talking about.
  • #10,213
  • Aug 18, 2015 12:31pm Aug 18, 2015 12:31pm
Just sold a couple of AAPL 118/120 weekly call spreads for $0.42.
I have no clue what I'm talking about.
  • #10,214
  • Aug 18, 2015 1:04pm Aug 18, 2015 1:04pm
Quoting Boy Wonder
{quote} Hey Stray....do you mean for example selling a 2100/2130 call spread?
Yeah, something like that... it depends of your risk tolerance, how far or close to the price you go. So far, I have sold only far OTM, both single options, or spreads. But, I will go close to the price occasionally with the spreads, i.e. short leg ATM or pretty close to the price, if I think that the U/L is on some extreme level.

I am on vacation starting from tomorrow, to the end of the month. I will probably just check quotes and won't trade.
Hope is dangerous in this game.
  • #10,215
  • Aug 18, 2015 2:01pm Aug 18, 2015 2:01pm
Quoting ZebraSquirl
{quote} Actually went for a 98/101 Sept 4 short call vert for .98, which got filled. Will look to take those off at near max profit ... .
Got these in at a very good area and somewhat in the nick of time ... . Volatility is picking up, which means that SVXY is in a bit of a downturn ... .

For me, when volatility evaporates from the indices, turn to a VIX product with short-term expiry horizons while waiting for vol to reexpand ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,216
  • Aug 18, 2015 2:53pm Aug 18, 2015 2:53pm
Quoting Boy Wonder
{quote} Hey Stray....do you mean for example selling a 2100/2130 call spread?
The width of the spread increases profit potential of the trade ... . It also increases the amount of buying power that has to be devoted to that trade. Me personally, I stick to 2-3 strikes wide in most cases. There are a couple of reasons for this: (1) I don't want to have to think too much; and (2) I don't want to have a bunch of different widths in place when I have 2-4 setups on for a particular index ETF (which is often the case).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,217
  • Aug 18, 2015 3:12pm Aug 18, 2015 3:12pm
Quoting ZebraSquirl
{quote} The width of the spread increases profit potential of the trade ... . It also increases the amount of buying power that has to be devoted to that trade. Me personally, I stick to 2-3 strikes wide in most cases. There are a couple of reasons for this: (1) I don't want to have to think too much; and (2) I don't want to have a bunch of different widths in place when I have 2-4 setups on for a particular index ETF (which is often the case).
Yep, always a trade-off between risk and reward. No way around it. Thinking about it, in a way selling naked is more conservative than selling spreads, because the high margin requirements of selling naked mean you can't sell so many; whereas the low margin requirement of selling spreads means you can go to town and get clobbered when (because it's always when) the u/l goes in the opposite direction to the one expected.
I have no clue what I'm talking about.
  • #10,218
  • Aug 18, 2015 3:14pm Aug 18, 2015 3:14pm
Very happy with the way things are panning out. I still think the indexes are weak, and that we'll see the bottom of the range before the top, and am positioned accordingly.
But yeah, now I've said that probably we'll get a gap up and go tomorrow...
I have no clue what I'm talking about.
  • #10,219
  • Aug 18, 2015 10:53pm Aug 18, 2015 10:53pm
As a short-term alternative to the broader index ETF's, shooting for a fill in XRT (S&P Retail) -- 87.5/90.5/102/105 Oct 2nd expiry for a .57 credit.

The IVR is nothing to write home about (46 -- 52 Week TOS), but it beats the index ETF's for now ... .

Trying to keep a minimum "trade cost" to portfolio balance on of between 10 and 15%, which can be tough if there is no volatility in my bread-and-butters to take advantage of ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #10,220
  • Aug 18, 2015 11:07pm Aug 18, 2015 11:07pm
Quoting Boy Wonder
Very happy with the way things are panning out. I still think the indexes are weak, and that we'll see the bottom of the range before the top, and am positioned accordingly. But yeah, now I've said that probably we'll get a gap up and go tomorrow...
/ES looking small off in Asian trading ... . Off by 2.00 to 2092. /NQ off 6.75. /ZN up '030 (as of 12:00 EST).
Fireworks are fun ... as long as you don't blow your fingers off.
5 traders viewing now