luckyd1976
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EEM is in a good spot for an IC. Some good protections are in the Support/Resistence.
Going to place a position BRB.
Going to place a position BRB.
luckyd1976
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46/44/33/31
Net Credit 0.18
New Cash return since June 3rd. +18.8% for 2 months worth of Expirations.
Net Credit 0.18
New Cash return since June 3rd. +18.8% for 2 months worth of Expirations.
Thanks luckyd1976 for your reply, I really appreciate your response. You're correct I pulled the iron condor a bit tight but I only have $1 spread so I think this may be a bit easier to adjust (hopefully and if necessary). I chose the calendar spread trades at 38 and 40 because this is somewhere in the middle of the range over the past 6 months and it is currently giving me postive vega on the whole position. Trading EEM seems to be more of in a range than SPY, which I will wait to put a position on but not 'til next week if we get a sell off. I am trading small but enjoying it much more than trading spx and rut.
luckyd1976
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Calendars are tricky for me.
But if you are dead set on a calendar look into maybe more of a front month Delta Neutral maybe a 42/37 ish and rewrite every expiration to rise up your risk profile. How do you plan on management of the calendars, buy back front and let long ride?
luckyd1976
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I hated the SPX you always had to play with the fills. How long have you been running the EEM?
Yes I also agree, calendars are tricky especially when volatility is dropping. My plan for managing the calendar spreads--if we tank, I'll buy the 36 calendar spreads, or if we advance, I'll buy the 42 calendar spreads. I want to try to keep the delta as neutral as posible, however I am slightly biased towards a downturn in the market but who knows. As far as adjusting the iron condor, I could either buy a calendar at the short strike or move the vertical spread up or down or just buy a portion of the short option. Hope to win but man this is fun!
this will be my 2nd month trading EEM lol. I have found that selling condors on SPX and RUT at 7 or 8 deltas in the market although high probability trades and they all look good when placed but markets have not been all over the place and having to make an adjustment on those indices was not fun. So, I think staying small in EEM and SPY and IWM (maybe) and mixing in some positive vega trades can potentially offset huge down days. I am long a hand full of stocks, although covered, so if we have a major move higher, I could live with that. Did i mention how fun this is now?
luckyd1976
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I broke one of my cardinal IC rules this week. I bought a GOOG IC before tonights after market close...
I placed it way out on the +-10 Deltas but it's a flyer on that I think earnings arent going to move it much. We'll find out if I get roughed up alittle and need to adjust.
I placed it way out on the +-10 Deltas but it's a flyer on that I think earnings arent going to move it much. We'll find out if I get roughed up alittle and need to adjust.
luckyd1976
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SPY & IWM are the staples. Yes, lol it gets better and easier when you have people to bounce ideas off of. And trust me everyonce in awhile someone to tell you that was a dumb idea and this is why. Options to me are the easiest form of income trading. If you master this you'll do absolutely fine my friend.
Yes and thank you for your input on my trades! I am confident that option trading as a business is and can be a great income as well, which I am hopeful to make the leap at some point on a full time basis from some far away island (as long as I have a connection) where living is inexpensive and income can be made with a few clicks. Ahhhhhhh the dream.............
luckyd1976
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Thankfully I didnt have to reAdjust because of GOOG earnings. IC's have plenty of room for forgiveness in some positions. I also love the fact that after earnings all the IV gets stripped clean out. Pre Earnings the AUG 510 GOOG was @ 12.00 now its 3.60 got to love it.
11 IC
+18.8% two months
11 IC
+18.8% two months
luckyd1976
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scose-no-doubt
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Keep going people are paying attention.
luckyd1976
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lol
Now here's the boring part
I'm full up on my positions for AUG Expiration. Now it's just check the book twice a day (morning open & @ 3pm EST) and look for needed adjustment points.
luckyd1976
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Got bored and just opened an AUG NFLX IC 160/150/95/85
12 IC
+20% since June 3rd (AUG Expiration)
ok now it's watch and adjust if and when needed.
luckyd1976
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For my S-Sides I generally BTClose @ 0.05 on the index ETFs. On individual stock IC's, I close it out after you've captured atleast 80% of the original Net Credit.
Yes by making those type of adjustments you'll cut into the Profits but I feel it's worth the trade off.
Some will ask why would you do that then, when you can just let it go to exp?
It's called cleaning up your trades and protection. Protection from some crazy gaps and or crazy Exercising with open S-Sides.
So Im watching the DIA 110Call and EEM 44Call
hello traders,
what do you think of selling a put in aapl for august at the 200 strike for 2.20. its a pretty good way to get into this stock if assigned at about a 17.5% discount to current price of 240ish. also looks like there are buyers at 200 as seen with the flash crash. does anyone use cash secured puts as a way to get into stocks at a substantial discount?
what do you think of selling a put in aapl for august at the 200 strike for 2.20. its a pretty good way to get into this stock if assigned at about a 17.5% discount to current price of 240ish. also looks like there are buyers at 200 as seen with the flash crash. does anyone use cash secured puts as a way to get into stocks at a substantial discount?
luckyd1976
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Cash Covered
(Account Value x2) / (Strike Price x100) = # of Options you can write
(Account Value x2) / (Strike Price x100) = # of Options you can write
luckyd1976
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If you want to lock up 10k of your account on a cash covered/non Naked Put sure go right ahead. Currently the AUG 200 is $1.71. But be sure you want to own the stock.
howdy luckyd1976,
thanks for your reply. we just bounced up a bit on aapl so the sale of the 200 put will bring in less than my previous post. true, this is only a way to buy into a stock if your intentions are to in fact own the stock and a good way to get into stocks you want to own only and will be better made on days when the stock is down so you can bring in more money with the sale of a put. however, my current margin requirement on tos is showing about 2000 at the current appl price. another stategy is to just sell the vertical put spread, which will reduce margin and your risk on the trade. this is probably the safest way to get into a stock if assigned and only done on the stock you want to own. ok so for anyone reading this you should know that i am not an expert here and any trade i may mention that you think looks good should only be done on paper. thanks and good luck.
thanks for your reply. we just bounced up a bit on aapl so the sale of the 200 put will bring in less than my previous post. true, this is only a way to buy into a stock if your intentions are to in fact own the stock and a good way to get into stocks you want to own only and will be better made on days when the stock is down so you can bring in more money with the sale of a put. however, my current margin requirement on tos is showing about 2000 at the current appl price. another stategy is to just sell the vertical put spread, which will reduce margin and your risk on the trade. this is probably the safest way to get into a stock if assigned and only done on the stock you want to own. ok so for anyone reading this you should know that i am not an expert here and any trade i may mention that you think looks good should only be done on paper. thanks and good luck.