I closed this put calendar today for a credit of $2.00. I started this trade on 2/19 for a debit of $1.80. I could have kept this going since it was going in my direction, but I am choosing to get out and move on.
So my ROI is $2.00-1.80/1.80= 11.1% in 10 days!
Friday, February 29, 2008
CLOSE: WFC Call Calendar +11.8%
I opened this trade on 2/14/08 for a debit of $1.70.
Today I closed out the trade for $1.90 credit.
(1.90-1.70)/1.70=11.8% in 15 days
Today I closed out the trade for $1.90 credit.
(1.90-1.70)/1.70=11.8% in 15 days
CLOSE: DECK Short Straddle +17.8%
Yesterday, I sold the Mar 125 Call and Put for a total credit of $19.40.
Today, we got a very quick volatility crush, so I got out at 12:33pm for a debit of $14.95.
This gives me an ROI of 19.40-14.95/25.00 risk (credit plus margin)= 17.8% in 1 DAY!
Today, we got a very quick volatility crush, so I got out at 12:33pm for a debit of $14.95.
This gives me an ROI of 19.40-14.95/25.00 risk (credit plus margin)= 17.8% in 1 DAY!
Thursday, February 28, 2008
CLOSE: MER Call Calendar +202%
Today MER has bounced down off of the 55 line which I marked as the middle of my trading range between 50 and 60 and it had a huge black bearish candle.
So I decided it was time to close out this trade and move on.
I opened the trade on 1/31/08 for a debit of $2.48, then I rolled this trade on 2/5/08 for a credit of $2.00 and got a new cost basis of $0.48. Today I closed it out for a $1.45 credit.
(1.45-0.48)/0.48= 202% in 1 month!
So I decided it was time to close out this trade and move on.
I opened the trade on 1/31/08 for a debit of $2.48, then I rolled this trade on 2/5/08 for a credit of $2.00 and got a new cost basis of $0.48. Today I closed it out for a $1.45 credit.
(1.45-0.48)/0.48= 202% in 1 month!
CLOSE: MORN Short Straddle + 17.4%
On 2/21/08 I sold the Mar 70 Call & Put for a total credit of $6.65. This gives me a yield of 6.65/10.00 risk (credit & margin)= 66.5 % in 1 week!
Today, volatility has squeezed out of this straddle also, so I got out completely for a debit of $4.91.
6.65-4.91 profit/ 10.00 risk= 17.4% in 7 days!
Today, volatility has squeezed out of this straddle also, so I got out completely for a debit of $4.91.
6.65-4.91 profit/ 10.00 risk= 17.4% in 7 days!
OPEN: DECK Short Straddle Mar 125 Call/Put
TraderNate and GMoney were looking at this straddle so I placed it too because I agreed with the analysis. The credit was also very sweet on top of the higher probability of this trade too so we weren't complaining!
I sold the Mar 125 Call and Put for a total credit of $19.40.
19.40/19.40+5.60 (margin)= 77.6% yield in 1 week
The one thing I did wrong on this was place this trade as a GTC from last night to fill after 10:30am and not after 3:30pm. Had I waited until the afternoon, I would have gotten a higher credit as the other 2 got. This is why it's important to initiate the trade at the last possible minute for straddles since the stock can shift dramatically in those last few hours before announcement or market close before the announcement.
I sold the Mar 125 Call and Put for a total credit of $19.40.
19.40/19.40+5.60 (margin)= 77.6% yield in 1 week
The one thing I did wrong on this was place this trade as a GTC from last night to fill after 10:30am and not after 3:30pm. Had I waited until the afternoon, I would have gotten a higher credit as the other 2 got. This is why it's important to initiate the trade at the last possible minute for straddles since the stock can shift dramatically in those last few hours before announcement or market close before the announcement.
CLOSE: GFIG Short Straddle +8.2%
After the volatility crush, I decided to close out this straddle and got a debit of $10.60.
I opened this straddle on 2/21/08 for credit of $13.15. So my net profit is 13.15-10.60= $2.55
My risk was $13.15 credit + $18.00 margin (20% of 90 strike)
2.55/(13.15+18.00) = 8.2% in 8 days
I opened this straddle on 2/21/08 for credit of $13.15. So my net profit is 13.15-10.60= $2.55
My risk was $13.15 credit + $18.00 margin (20% of 90 strike)
2.55/(13.15+18.00) = 8.2% in 8 days
Wednesday, February 27, 2008
CLOSE: SWIM Short Straddle +24.8%
On 2/21/08, I sold the Mar 12.5 Call & Put for a total credit of $2.37.
Today, volatility has finally been squeezed out and is starting to slightly uptrend, so I closed the trade for a debit of $1.13.
$2.37-1.13 profit/5.00 risk (credit plus margin)= 24.8% in 6 days!
Today, volatility has finally been squeezed out and is starting to slightly uptrend, so I closed the trade for a debit of $1.13.
$2.37-1.13 profit/5.00 risk (credit plus margin)= 24.8% in 6 days!
CLOSE: HBC BRCS -17.3%
On 2/20/08 HBC, I sold Mar 80 for $0.82 credit and bought Mar 85 Call for $0.20 debit giving me a total credit of $0.62.
HBC has gone against me so I pulled out today for a debit of $1.38.
0.62-1.38= -0.76/5-0.62 risk= -17.3 % loss
HBC has gone against me so I pulled out today for a debit of $1.38.
0.62-1.38= -0.76/5-0.62 risk= -17.3 % loss
Saturday, February 23, 2008
ADJUST: UAUA BLPS to Iron Condor
On 2/7/08 , Entrered-UAUA Bull Put Spread (BLPS), I sold Mar 30 put & Bought Mar 25 put for credit of 0.85.
Today we added a bear call spread to hedge ourselves by selling the Mar 40 call for $1.17 and buying the Mar 45 Call for $0.40 giving me a total credit of $0.77. Here we have essentially created an iron condor. This gives you an extra credit and helps reduce the risk of a single vertical going against you.
0.85 (original credit) + 0.77 (today's credit)= $1.62 credit
Today we added a bear call spread to hedge ourselves by selling the Mar 40 call for $1.17 and buying the Mar 45 Call for $0.40 giving me a total credit of $0.77. Here we have essentially created an iron condor. This gives you an extra credit and helps reduce the risk of a single vertical going against you.
0.85 (original credit) + 0.77 (today's credit)= $1.62 credit
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