April 22, 2014
CREE earnings volatility play which reports after market today.
Selling Apr weekly 59/58.50 Put spread
selling the 59 put and buying the 58.50 put
Selling one naked 65 call
The spread is $0.50 wid
premium is $0.91 ($91)
if CREE falls through the downside there is no risk as the $0.91 premium is 0.41 more than the spread so I will collect .41 ($41) per lot
Break Even is 65.88
As long CREE goes up but stays below 65.88, I potentially gain the entire 0.91 ($91) premium per lot.
Underlying is currently 58.50
This gives me well more than the project $3 move
The worst case scenario is if it blows through the top side of 65.88, in which case I will need to decide whether to take a loss or let it exercise and be short 100 shares of CREE at 65.88
February 13, 2014
Closed for 0.03 or .47 ($47) profit
January 31, 2014
Selling $3 wide credit put spread in SPY
selling the Feb 174 and buying the Feb 171
Break even is 173.50
Buying Power Effect $250
Premium 0.50 ($50)
Probability of success 71%
Bias is bullish
FB surged higher and I took a 50 cent ($50) loss. I do not wish to be short FB at this time.
FB earnings volatility play
Selling 54/53 Put spread
selling the 54 put and buying the 53 put
Selling one naked 60 call
The spread is $1 wide
premium is $1.31
if FB falls through the downside there is no risk as the $1.31 premium is .31 more than the spread so I will collect .31 ($31) per lot
Break Even is 61.31
As long FB goes up but stays below 61.31, I potentially gain the entire 1.31 ($131) premium per lot.
Underlying is currently 53.84
This gives me well more than the project $5 move
If it blows through the top side of 61.31 I will decide whether to take a loss or let it exercise and be short 100 shares of FB at 61.31
January 28, 2014
Closed $AAPL Option volatility play for 4.81 a gain of 2.93 or $293 per one lot over night.
January 27, 2014
Sold AAPL Volatility into earnings
Selling March 555/550 put spread
selling the 555 put and buying the 550 put
and selling the March 615 naked call
The spread is $5 wide
premium is $7.72
if AAPL falls through the downside there is no risk as the $7.72 premium is 2.72 more than the spread so I will collect 2.72
Break Even is 622.72
As long AAPL goes up but stays below 622.72, I potentially gain the entire 7.72 ($772) premium.
Underlying is currently 552.36
This gives me well more than the project $6 move
If it blows through 622.72, I will likely take the loss as I do not want to let it exercise and be short 100 shares of AAPL at 622.72.
Oct 22, 2013
CREE has been moving up since I first put in the bid and is not filling, so I have adjusted the below trade.
I have changed the trade to:
Selling this week's 74 put and buying the 73.50 put
and selling this week's 85 naked call
Now the spread is only .50 wide
premium is $1.00
if CREE falls through the downside there is no risk as the $1.00 premium is still .50 more than the spread and I will collect 0.50 ($50)
Break Even is 86
As long CREE goes up but stays below 86, I potentially gain the entire $1.00 ($100) premium.
Underlying is currently 73.79
This gives me well more than the project $6 move
If it blows through 86, I will either take a loss or let it exercise and be short 100 shares of CREE at 86
I am selling volatility into CREE earnings tonight.
Selling the weekly (this week) 75/74 put spread
selling the 75 and buying the 75
and selling one naked 85 call
Premium 1.53 ($153)
Break Even 86.53
Expected move $6
Buying Power Effect 791.80
There is no risk to the downside as the spread is a dollar wide and the premium is 1.53 so if it blows through the downside, I will still collect .53 ($53).
I am giving it lots of room to the upside. If it goes up but does not go higher than 86.58, I will potentially collect the entire premium of 1.53.
The worst case scenario is that CREE blows through 86.85. There is less than 15% chance that it does that. If it does, I will either take a loss or let it exercise and have 100 shares of CREE short at 86.85
Oct 15, 2013
I closed my SPY credit spread for a gain of .11 ($11) per contract
Sept 20, 2013
I am taking a small bullish trade in SPY - selling an otm put spread Oct 167/165 for .31 premium; risking $169 - Break even is 166.69
Selling the 167 and buying the 165. I expect SPY to remain above 166.69 over the next month.
June 27, 2013
Sold volatility into tomorrow morning's earnings in BBRY.
Selling the weekly (expires tomorrow) 15/15.50 call spread (sell the 15 / buy the 15.50) and selling a naked 13.50 put
There is no risk to the upside - because my premium is 0.56 ($56) which is larger than the 0.50 cent spread. If it blows through the top I still collect 0.06. ($6).
If it drops below, I will own a hundred shares per lot of BBRY at 12.94 - and I am willing to do that. This is the worst case scenario.
Sold a bullish put spread in SPY -
Selling the Aug 149 and buying the 147
Premium is .40 ($40) -
Break even is 148.60
Risk is 160
This is a revert to mean trade that is way out of the money. With these trades, it is best to get them when the market is going the opposite direction. My theory here is that the market will continue to correct but will likely not drop below the 200 day moving average which is currently at 150.85, more than $2 above the the break even price.
Sold a Call spread for credit WFC -
sold the July 41
bought the 42 July
Premium .29 ($29) -
break even is 41.29 -
risk is .71 ($71)
June 21, 2013
YGE expired for a gain of $50
IWM expired for a loss of $40
June 4, 2013
As markets chop about while correcting recent overbought condition, this is a good time to put on a different kind of trade.
This trade has a neutral bias.
I am selling a July Iron Condor in SPY
Selling a 157/155 Put Spread (sell the 157 and buy the 155)
Selling a 170/172 Call Spread (sell the 170 and buy the 172)
Premium .69 ($69)
Risk 1.31 ($131)
Break even prices are 156.31 and 170.69
As long as SPY stays between the two break even prices I will collect the full premium.
I am putting on another neutral trade in IWM amid the chop.
I am selling a July Iron Condor in IWM
Selling a 91/89 Put Spread (sell the 91 and buy the 89)
Selling a 102/104Call Spread (sell the 102 and buy the 104)
Premium .68 ($68)
Risk 1.32 ($132)
Break even prices are 90.33 and 102.67
As long as IWM stays between the two break even prices I will collect the full premium.
May 24, 2013
$P trade closed for .55 giving me a gain of .65 ($65)
May 23, 2013
$P June contracts implied volatility is 95%
Sold a 18/19 call spread
Sold the June 18 / Buy the June 19 calls
and sell a 15 naked put -June
Premium: 1.20 ($120)
No risk to the upside as premium is 1.20 which is .20 more than the dollar wide spread
Risk to the downside is that I end up with 100 shares of P at 13.80. As long as it stays above 13.80, collecting the full premium is possible.
If you have any questions about this trade, feel free to respond to this email.
Please trade small.
May 9, 2013
I closed GMCR 0.98 for the three legs.
This will gave me a gain of .22 ($22)
I took a volatility play into GMCR earnings which are after the bell.
May 8, 2013
I sold this week's May weekly dollar wide 59/60 Call spread
Sold one 59 and bought one 60
Sold one naked weekly 49 Put
Break Even 47.81
No risk to the upside as the premium is more than the width of the strike by 19 cents. If it blows through the top, I collect 0.19 ($19). If the stock goes down but stays above my break even, I will collect up to 1.19 $(119).
Worse case scenario, if the stock drops below 47.81, my put exercises and I own 100 shares of GMCR at 47.81.
The expected move is $7 and implied volatility in these are 182%. I expect the volatility to come in after the earnings are released. This will drop the price of the options in my favor.
Please remember to trade small.
April 23, 2013
Closed NFLX trade for gain of $85 per lot.
I put a closing order in for 4.90 and it filled.
I am taking a volatility play in CREE into earnings which are after the bell.
CREE weeklies implied volatiltiy is 113%. Much of this volatility will come out once the event has taken place.
I will also sell two thirds of my CREE common before the end of the day and hold a one third size position into earnings.
Sold a 50 cent wide weekly call spread
Sold one 57 call / bought one 57.50 call
Sold one naked weekly 50 put
Premium: 0.62 ($62)
Break even: 49.38
If CREE goes up through the topside, I will collect .09 since the premium is that much more than the width of the spread.
If CREE drops but stays above 49.38, I will collect the full premium and I will offset the drop in my one third position of common.
If it drops way down below 49.38, I will add 100 shares of CREE per lot to my long term account at 49.38. This is one stock I definitely don't mind owning at that price.
April 19, 2013
Volatility Earnings Play in $HAL
HAL earnings are Monday morning. Here is my trade:
Sold one 37/37.50 April 26 weekly call spread
Sold one naked April 26 weekly 35 put
Premium: 0.54 ($54)
Break Even: 34.46
The width of the spread is 50 cents so risk to the upside is eliminated. If it blows through the top side, I will still collect $0.04.
Ideally, it drops to the strike of 35 and I will collect the full premium.
If it drops below 34.46, it will exercise and I will own 100 shares of HAL at 34.46. I don't mind owning HAL at 34.46. I believe oil is reaching the bottom of its range and HAL pays a 1.36% divie. This would be a welcome addition to my long term at this price. The trade works for me on all levels.
Apr 16, 2013
Sold a $2 wide bearish call spread in IWM June 95/97
Sold the June 95 / Bought the June 97
Max Loss $154
Premium 0.46 ($46)
Break even: 95.46
Apr 3, 2013
Sold one 56/58 FAS May Call spread
Sold the May 56 call
Bought the May 58 Call
Risk is $140
Premium .60 ($60)
Break Even 56.60
March 15, 2013
I have full profits in my RIMM turned BBRY option trade of $90 per lot.
I closed the $FB trade for $32.50 profit per lot.
Took the $460 loss on the WLT trade. I have decided I do not want to own it
March 15, 2013
I have a bid in for a bullish put credit spread in AAPL 420/415
Selling the Apr 420 / Bought the Apr 415
Premium: 1.25 ($125)
Break Even: 418.75
AAPL looks to have finally put in a bottom here and I am taking a trade with some room. My break even is below the recent low put in.
March 11, 2013
This trade filled for a premium of .50 ($50)
I am selling the Apr 82.50/85 Call Spread in $CTSH.
Selling the 82.50
Buying the 85
Premium: .47 ($47)
March 8, 2013
I have decided to close my FAS bearish call spread as it was deep in the money but was only at half loss of $80. The 150/152 position was $10 in the money and I feel it is less likely that FAS will come down that far in the coming week so I took the $80 loss instead of the 160 max loss I might have taken if I held it. Also, I did not see a viable trade to roll it into for April. I will wait to revisit a new trade in FAS for April.
I have rolled my RUT bearish call spread to Apr and rolled up the strike price to 950/960 from 945/955. This new trade will allow me to collect 80 more than my current loss making the roll viable. This assumes RUT stays below 956.80 in the coming month which I think is likely. I collect a little more and give myself a little more room as well as more time.
March 5, 2013
I am taking a bullish put credit spread in $SHLD based on today's move in the chart. I believe it is looking for higher prices.
Sell Apr 42 Put / Buy Apr 40 Put
Premium: .42 ($42)
If you have any questions about this trade, please feel free to reply to this email.
Please remember to trade small.
March 1, 2013
$CRM trade filled at 1.15 and I took full profit of $115
February 28, 2013
High volatility in tomorrow's expiring options $CRM. I am selling a spread on either side for an iron condor. Earnings are tonight.
I am risking $400 to make $100
Selling the 185/190 Call spread
Sell weekly 185 / Buy weekly 190
Selling the 155/150 Put spread
Sell weekly 155 Put
Buy weekly 150 Put
Premium $1.00 ($100)
Max Loss $400
Break Even 154/186
The expected move is $12 and I am assuming that CRM will stay in the range. I have given myself room outside of this range.
February 27, 2013
GRPN volatility in March Weekly is 238%
I am selling a weekly 5.5/6.00 call spread
Sell the 5.5 and buy the 6.00
and selling a naked 6.00 put
Premium .56 ($56)
Sweet Spot is 5.50
If it blows through the top, I will keep the 0.06 on the 50 cent call spread eliminating risk to the upside.
Break even on the bottom is 4.94. If it falls below, I will own 100 shares pre lot of GRPN (in the Wheel of Fortune) for 4.94 and I will sell calls against it. Since it is such a low priced product, it will be pretty easy to reduce the cost basis by selling options against the position if I own it. I really don't mind owning it at this price.
February 27, 2013
Closed $FSLR for .31 a gain of $30 per lot profit.
February 26, 2013
I am taking a volatility earnings play into FSLR earnings. Implied volatility is currently at 259% in the March weekly options. I am..
Selling a March weekly 32/325 call spread
(sell one 32 call / buy one 32.50 call)
Selling one naked March weekly 26 put
Premium 0.63 ($63)
Break even on downside: 25.37
No risk to the upside as .63 is more than the 50 cent wide spread. If it blows through the upside, I will collect the difference of .13 ($13).
My assumption is that the FSLR will move down on earnings but either way the volatility will come out that is currently at 159% on this weekly.
Expected move is 3.70; I am giving it more than $5 room with a break even at 25.37.
WORSE CASE SCENARIO: If FSLR blows through the downside, I will own one hundred shares of FSL at 25.37 which I will put into my Wheel of Fortune and sell calls against it.
*February 22, 2013
I am taking a twisted strangle play in FB
Sell one Apr 29/30 Call Spread
Sell one naked Apr 26 Put
Premium 1.26 ($126)
Break even is 24.74 on the downside
Underlying price 27.15
There is no risk to the upside as the premium is more than the $1 wide spread. If it blows through the upside, I still collect .26 ($26)
Sweet spot is between 26 and 33.50 for full collection
Worse case scenario is that FB closes below 24.74 and I will own 100 shares per lot at 24.74 and put it into the wheel of fortune, selling calls against the position.
Please remember to keep trades small.
*February 20, 2013
I took a volatility play in WLT for tomorrow morning's earnings.
I am selling a March 37.50/40 Call Spread
and Selling a March 37.50 Naked Put
Total Credit is 3.13 ($313)
Volatility should come in after earnings and give me some profit tomorrow, which I will take. If it blows through the top side, I will collect .63 ($63) because it is a 2.50 wide spread and I will collect the difference.
If it tanks below my break even point of 34.37 and closes there at March expiration, I will become the proud owner of WLT for 34.37. I will sell calls against the position and put it into my wheel of fortune.
*February 19, 2013
Closed $CONN options trade for 0.03 - gains of $37 per lot
*February 15, 2013
$NTAP trade did not work. Took the $18 loss.
*February 15, 2013
Sold one March 30 call per lot of $CLF
*February 13, 2013
Selling Volatility in $NTAP with a bearish assumption.
Sell a 35/35.5 Feb call spread (Sell 35 / Buy 35.50)
Sell One Naked Feb 31 Put
Break Even: 30.40
Buying Power effect: 335.50
This is a 2 day trade. NTAP is reporting earnings today after the close and the options expire on Friday. We know the volatility will come out of this. If I am wrong and it goes up and blows through my top side, I will still collect 0.10 ($10).
If it goes down but stays above 30.40, I will win. If it drops below 30.40, I will be assigned and I will sell calls against this volatile product.
*February 12, 2013
Back Ratio Spread $CLF
Buy one Feb 33.50 Put
Sell two Feb 33 Puts
Credit: 12 ($12) if I am wrong
Max Profit: .62 ($62) if I am right
This is a volatility play; my assumption is the stock will move to the downside. Expected move is $2. If I am wrong and the stock blows through the tops side, I will collect the premium of .12 ($12). If I am right, I will collect full profit of $62 per lot.
Worst case scenario, it the stock drops far below expected move and my break even of 32.38, I will allow it to excercise and will own 100 shares of CLF at 32.38 at which time I will sell calls against it to lower my cost even more.
*February 8, 2013
Closed $CSTR trade for 0.90 a gain of 1.70 ($170) per lot.
*February 7, 2013
I am selling the high volatility in CSTR into earnings.
Sell 52.50/55 Feb Call Spread
Sell 47.50 Put
For a credit of 2.80 ($280)
Break Even: 44.70
This is trade has no risk to upside because I am collecting more than the width of the spread of 2.50. If the stock blows throughthe upside target of 52.50, I will still collect 0.30 ($30)
If the stock stays between strikes, I can collect the entire 2.80 ($280)
Worst case scenario, if CSTR drops below my break even of 44.70, I will be assigned at expiration and own the stock at 44.70, but I don't mind because the volatility is so high, that I will be able to sell calls against it, bringing my cost basis down even further.
*February 7, 2013
Closed $GMCR trade for gains of $99 per lot
*Februrary 6, 2013
Closed $WYNN trade for gains of $87 per lot
*Februrary 6, 2013
Closed $YUM for gains of 1.10 ($110) per lot
*Februray 6, 2013
I made an earnings volatility play in $GMCR
Sold the Feb 49/50 Call Spread (sold the 49 and bought the 50)
Sold one Feb 40 Naked Put
Total Credit: 1.25 ($125)
Underlying stock price: 48.14
Days to expiration: 9
Break even price: 38.75
The worst case scenario, if GMCR drops all the way below 38.75, I will let the put excercise and own 100 shares of GMCR at 38.75.
I am selling volatility in GMCR and I can win in this trade in either direction. If it blows through the top, I will keep .25 ($25) per lot as the total credit is 0.25 higher than the dollar wide spread.
If GMCR goes down, but stays above 38.75- I will collect the full 1.25.
*Februray 6, 2013
Closed $CMG Butterfly for gains of .50 ($50) per lot
*February 5, 2013
Took a bullish Butterfly trade in $CMG for earnings
I bought a Feb 65 Put
I sold TWO Feb 62.50 Puts
Cost and Max Loss: 0.20 ($20)
*Februrary 4, 2013
Option Ratio Spread Earnings Play $YUM
Bought One Feb 65 Put
Sold Two Feb 62.50 Puts
Break Even 59.77
If stock goes down to my strike of 62.50, I will make max profit of 2.70 ($270) per lot. If stock goes up, I will collect a credit of .20 ($20). If stock goes below my break even, one bought and one sold put will cancel each other out and I will let the last put exercise and own 100 shares of YUM for 59.77.
*January 31, 2013
$WYNN volatility play
Sold March 135/140 Call Spread
Sold March 115 Put
Premium is 1.36 ($136) per lot
Buying Power Effect: $1,900
B/E is 136.36 to the upside
and 113.64 to the downside
*January 29, 2013
I took a volatility play in $RIMM
I sold a 19/20 March Call spread and
I sold a naked 12 March put
Buying power effect is $210
Premium is 0.90 ($90)
Break even is 11.10 on the downside; there is no risk on the upside
RIMM is a high volatility play that has pulled back significantly from its uptrend. My theory is that it will bounce here but also that I am far enough out of the way not to get hit on the downside. I will make adjustments accordingly if it gets too close.
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