ADJUST: HD Dbl. Calendar

6/20 SOLD HD 100 JUN 08 27.5 PUT @ $1.18 credit
6/20 BOT HD 100 JUL 08 27.5 PUT @ $1.60 credit

6/24 SOLD CALENDAR HD 100 AUG 08/JUL 08 27.5 PUT @ $0.38 credit
6/24 BOT CALENDAR HD 100 AUG 08/JUL 08 27.5 PUT @ $0.38 debit

This brings my total cost basis to $0.59 after all the crazy adjustments to clean up my mess. Overall I am back to a Jul/Aug 25 & 27.5 double put calendar trade.

ADJUST: HD Dbl. Calendar

SOLD CALENDAR HD 100 JUL 08/JUN 08 27.5 PUT @ $0.60 credit
SOLD DBL DIAG HD 100 JUL 08/JUN 08 27.5/25/27.5/25 PUT @ $1.00 credit

The mistake I made on this trade was a separate order for my 27.5 puts got filled on accident because I had this as a working order for a while and forgot to check it and cancel. So I double sold my 27.5 position. I immediately put in an exit order for the extra contracts but it did not get filled in time before market close. So, I have GTC'd this exit order to fill tomorrow morning.

This brings my cost basis to $0.17 from yesterday.

ADJUST: HD Dbl. Calendar

Today I rolled my July long legs out to August to stretch the trade out a little longer. It has been channeling nicely within my range and I can get August cheaply today.

BOT CALENDAR HD 100 AUG 08/JUL 08 27.5 PUT @$0.44 debit
BOT CALENDAR HD 100 AUG 08/JUL 08 25 PUT @ $0.42 debit

My last cost basis was 0.44+0.47=0.91
Now it is 0.91+0.44+0.42= $1.77

ADJUST: HD Calendar to Dbl Calendar

Yesterday, I opened the trade as follows:
BOT CALENDAR HD JUL 08/JUN 08 27.5 PUT @ $0.44 debit
My breakevens (B/Es) were at 26.02 & 29.13.
Position is sized for max loss.

Today I added another calendar to hedge on the downside:
BOT CALENDAR HD JUL 08/JUN 08 25 PUT @ $0.47 debit

My new B/Es are at 24.52 & 28.13...so this gives me more wiggle room and protection on the downside.

My new cost basis is 0.44 + 0.47= $0.91

CLOSE: BEN Dbl. Calendar +6.4%

I started on 5/29/08 with the Jun 95 & 100 put calendars for an original cost basis of $3.43.

On 6/5 it peaked up through 105 so removed my bottom side and adding a top leg at 105.
SOLD CALENDAR BEN 100 JUL 08/JUN 08 95 PUT @1.30 credit
BOT CALENDAR BEN 100 JUL 08/JUN 08 105 PUT @2.15 debit
My adjusted cost basis was= $3.43 -1.30+2.15= $4.28

My lesson learned so far with these calendars is to begin with a single calendar unless it is definitely channeling between the 2 strikes I am buying with the calendars; size with at least 3 contracts so I have the ability to adjust my position; and add on another calendar later and not have to lose money by removing legs in the future.

Today I exited the trade completely as follows:
SOLD DBL DIAG BEN JUL 08/JUN 08 105/100/105/100 PUT @ $4.50 credit

4.50-4.28/3.43= 6.4% in 13 days

ADJUST: BEN Dbl Put Calendar

I started with a cost basis of $3.43 on 5/59/08 with the Jun 95 & 100 put calendars.

Today it has peaked up through 105 so i am now removing my bottom side and adding a top leg at 105.

SOLD -57 CALENDAR BEN 100 JUL 08/JUN 08 95 PUT @1.30 credit
BOT +57 CALENDAR BEN 100 JUL 08/JUN 08 105 PUT @2.15 debit

My new cost basis= $3.43 -1.30+2.15= $4.28

My lesson learned so far with these calendars is to begin with a single calendar unless it is definitely channeling between the 2 strikes I am buying with the calendars; size with at least 3 contracts so I have the ability to adjust my position; and add on another calendar later and not have to lose money by removing legs in the future.

ADJUST: NMX Dbl Calendar

From 5/29/08 I began with the June 90 & 95 put calendars. My total cost basis was $3.05.

I did not get stopped out yet on this trade so I am adjusting it as it has come down and tested the 80. I sold the 95 put calendar and bought an 80 put calendar as follows to give me some downward protection and make the trade delta neutral again.

SOLD -64 CALENDAR NMX 100 JUL 08/JUN 08 95 PUT @ $0.70 credit
BOT +71 CALENDAR NMX 100 JUL 08/JUN 08 80 PUT @ $1.78 debit

3.05-0.70+1.78= New cost basis= $4.13

CLOSE: V Dbl Calendar +23.3%

On 5/22/08 I opened the trade as follows:
BOT CALENDAR V JUL 08/JUN 08 75 PUT @1.30 debit
BOT CALENDAR V JUL 08/JUN 08 80 PUT @1.20 debit
Total cost basis= $2.50

On 5/29/08, I adjusted my 75/80 dbl. put calendar to an 80/85 dbl put calendar.
SOLD CALENDAR V JUL 08/JUN 08 75 PUT @ $0.95 credit
BOT CALENDAR V JUL 08/JUN 08 85 PUT @ $1.45 debit
New cost basis= 2.50 +1.45 - 0.95= $3.00

Today I exited completely out of the trade:
SOLD DBL DIAG V JUL 08/JUN 08 85/80/85/80 PUT @ $3.70 credit

3.70-3.00/3.00= 23.3% ROI 13 days

OPEN: NMX Jun 90/95 Dbl Put Calendar

Seeing the channel between 90 and 100, we put on a double calendar on NMX today.

BOT CALENDAR NMX JUL 08/JUN 08 95 PUT @ $1.50 debit
BOT CALENDAR NMX JUL 08/JUN 08 90 PUT @ $1.55 debit

Total cost basis= $3.05

If this begins to trend upward above 95, I will look to add on a calendar at 100.

OPEN: BEN Jun 95 & 100 Dbl Put Calendar

BOT CALENDAR BEN 100 JUL 08/JUN 08 95 PUT @1.68 debit
BOT CALENDAR BEN 100 JUL 08/JUN 08 100 PUT @1.75 debit

Total cost basis= $3.43

ADJUST: V Double Calendar

On 5/22/08 I entered the Jun/Jul 75 & 85 put calendars with a cost basis of $2.50.

Here's where I was today before I adjusted. Notice how the stock is currently toward the lower right side of the slope almost toward the upper breakeven of $86.78. Also notice how my delta is -819.16 which means for every dollar the stock goes up, I will lose $819.16! OUCH!



Today I am removing my 75 and adding the 85 as this stock has been uptrending. Also, I am further mitigating risk by lowering my delta exposure.

SOLD CALENDAR V JUL 08/JUN 08 75 PUT @ $0.95 credit
BOT CALENDAR V JUL 08/JUN 08 85 PUT @ $1.45 debit


This changes my delta risk to -357.85 and shifts my upper breakeven even higher to $91.14.

New cost basis= 2.50 +1.45 - 0.95= $3.00

ADJUST: BCS Dbl. Calendar

I also rolled my Sep down to July on this calendar I had for protection and to further reduce my cost basis.

SOLD CALENDAR BCS SEP 08/JUL 08 30 CALL @.60 credit
SOLD CALENDAR BCS SEP 08/JUL 08 35 CALL @.59 credit

My cost basis as of 5/15/08 when I entered the trade was $2.05, so now it is adjusted to:
2.05-.60-.50= $0.95

OPEN: POT, UNG, V

POT:
SOLD -12 POT 100 JUN 08 195 PUT @ $8.50 credit
Exit naked put at 80% profit at $1.70 debit.
Stop loss set to twice credit at $17.00 debit.

UNG:
Naked Put: SOLD UNG JUN 08 52 PUT @ $0.92 credit
Exit naked put at 80% profit at $0.18 debit.
Stop loss set to twice credit at $1.84 debit.

Bull Put Spread: SOLD VERTICAL UNG JUN 08 53/51 PUT @ $0.55 credit
.55/risk of 2-.55= 37.9% profit potential.
Sized for max loss-no stop set.

V:
Double Calendar:
BOT CALENDAR V JUL 08/JUN 08 75 PUT @1.30 debit
BOT CALENDAR V JUL 08/JUN 08 80 PUT @1.20 debit
Total cost basis= $2.50

ADJUST: MSFT Dbl. Put Calendar

MSFT has been heading downward so I am adding a bottom calendar to give me some downward protection.

Today I added this calendar:
BOT CALENDAR MSFT OCT 08/JUN 08 27 PUT @1.10 debit

On 5/14/08 I entered the trade as below:
BOT CALENDAR MSFT OCT 08/JUN 08 30 PUT @1.09 debit

So now my adjusted cost basis= 1.10+1.09= $2.19

Now my position is delta neutral with good theta on my side for my short legs.

OPEN: BCS Jun/Sep 30/35 Dbl Call Calendar

BOT SEP 08/JUN 08 35 CALL @ $1.10 debit
BOT SEP 08/JUN 08 30 CALL @ $0.95 debit

Total cost basis= $2.05

B/E range is between 28.57 - 36.61. Check out the risk graph below.....by adding the 2nd calendar I am stretching out my breakeven range and spreading out my profit potential (notice the shallow curve on the chart).


I did a double calendar since the stock is currently around $33.00 (between 2 strikes available of 30 & 35).

If the stock tests 32.50 line, which is where it is near now (current support level), and moves back upward, then I may remove my 30 calendar. I will analyze at that point.

CLOSE: LVS Dbl. Put Calendar +14.4%

On 3/18, I bought the Jun 70 for 5.75 & sold the Apr 70 for 2.62. I adjusted my cost basis to $2.70+ 3.13= $5.83.

On 3/28 I closed out my first leg (Apr/Jun 85 put) for $2.80 credit.

On 3/31 I closed out last leg (Apr/Jun 70 put) for $3.87 credit.

5.83-2.80-3.87= 0.84 profit/5.83 adj. cost basis= 14.4% profit in 2 weeks

ADJUST: LVS Apr/Jun 70/85 Put Calendar

On 3/13 I entered this Put Calendar at 85 for Apr/Jun for a debit of $2.70.
Today, seeing that this has bounced off of 70 and started heading up again, caused me to hedge my position by adding a second calendar at 70 for an additional debit of $3.13.

This is how it increased my probability:

Here's the analysis chart for just the single 85 calendar I was in. Notice how I only had a 42.85% probability that the stock would hit my strike of 85 for max profitability.

Here's the chart with the 70 and the 85 double put calendar. Now my probability of max profit has increased to 60.14% for only an additional $3.13.

I bought the Jun 70 for 5.75 & sold the Apr 70 for 2.62. So now my adjusted cost basis is $2.70+ 3.13= $5.83.

I reset my stop loss to $4.09 (30% loss)

OPEN: LVS Put Cal.,USO Time Diag., TGT Dbl.Put Cal., POT Put Cal., SHLD Put Diag.

Today I opened several trades along with my trading partners:

Also, I am now doing trades within 2% of my total portfolio size. I moved up from 1% from last month since I had several winnings trades. This is a great discipline strategy to employ when you've had some losers and/or you are starting to get emotional about your trading. If you are experiencing any one or two of these issues, then minimize your risk by sizing small 1% or less of your total portfolio until you have a string of winners and are less emotional about your trades.

LVS Put Calendar:
Sold April 85 for $11.75 and bought the Jun 85 put for $14.45. My total debit on this trade was $2.70.
This gives me a yield of 11.75/14.45= 81% in 1 month
I will roll the short leg to May once the stock gets close again to the middle of the trading range at 85.


TGT Double Put Calendar:
The chart is neutral to bearish currently with consolidation around 52.50. I put on a double calendar at 47.5 to hedge myself in case this breaks downward out of my trading range on the 52.50 calendar. Looking at the probabilities, this allows me to make my money within the first few days instead of having to wait about a week to start profiting. This is my first double calendar so we'll see how it all works out.

Bought Jul 47.5 put for $4.10
Sold Apr 47.5 put for $1.80 for a net debit of $2.30
Bought Jul 52.5 put for $6.50
Sold Apr 52.5 put for $4.15 for a net debit of $2.35

So this gives me a yield of: credit (1.80+4.15)/debit (4.10+6.50)= 5.95/10.60= 56% in 1 month


POT BLPS:
With a perfect bullish engulfing candle and a bounce up off the 30 day moving average today, I got filled on a bull put spread. Next earnings announcement isn't until 4/21/08 so I have time to get out before that volatility craziness.

Sold April 135 put for $4.00
Bought Apr 130 put for $2.93 for a net credit of $1.07
Risk is 5.00-1.07=3.93 (position sized according to risk)
Net yield is 1.07/3.93= 27.2% in a few weeks

As long as the stock stays above 135, I'm good to stay in and let this one expire, or choose to close out whenever I want.

USO Time Diagonal:
So the time diagonal is kind of like a vulture but with a little more time on the long side.
Oil companies have been kicking a lot of butt lately as is evident with the cost at the pump!
USO ranks as one of the top companies in the oil industry with a nice break through resistance recently around $77.50. Now it's at it's 2 year high.

What we are doing is actually a counter-trend trade. WARNING: not for beginners or for those risking a huge pot!
Despite the trend of the stock (bullish), we looked at the MACD on this one (although it is a momentum indicator, we normally don't use this indicator because it's slow), and noticed that the MACD has a bearish trend right now-signaling to us that this baby may run out of steam. (look at the trend lines I drew on MACD). Also, volatility is jumping up which means there is a sense of fear here among investors (what goes up must come down).

So we Bought the Apr 91 Call for $2.50
and Sold Mar 90 Call for $0.82 giving a total debit of $1.68.

0.82/2.50= 32.8% yield in 1 week. We will roll the Mar to Apr to close out or possibly convert this to a calendar by rolling the long further out in time and rolling the short to April if this starts creating a channel. Or if it still trends, but downward, then we will convert this to another BRCS.
This trade is sized for maxed loss.

SHLD Put Diagonal:

Sold Apr 85 put for $3.00
Bought Jun 105 put for $19.55 for a net debit of $ 16.55.
3.00/19.55= 15.3% yield in 1 month