Tuesday, October 10, 2017

Announcement

After a moderately successful year I've decided to take a hiatus from the blog.  I'll still be trading, but I want to focus my attention on other things like teaching options trading, and less time keeping up with the blog.
I intend to return to it next year, perhaps in a more abbreviated form.

Thanks,
Bo

Monday, September 25, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Previous Trades]
I decided to take advantage of the drop in BABA this morning and rolled my inverted strangle to the next expiration (NOV) to collect additional credit and extend the duration of the trade.  However, BABA has earnings on 11/1, so there is the risk of a large upward move at that time if the news is favorable.  This inverted position has an intrinsic value of $45, so my goal with every adjustment is to chip away at that to get as close back to break even as I can before I close the position.

Rolled: five 15 OCT 135/180 BABA inverted Strangles @$3.66
  • Bought: five 15 OCT 135/180 BABA inverted Strangles @$47.00
  • Sold: five 15 OCT 135/180 BABA inverted Strangles @$50.66
Total Credit: $1,831.00
Total Commissions/Fees: $13.44
Balance: $56,943.22



Thursday, September 14, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Previous Trades]
Rolled the 175 inverted Puts up to 180 within the OCT cycle.

Rolled five 15 OCT BABA 170 Puts @$2.04
  • Bought: five 15 OCT 170 Puts @$3.31
  • Sold: five 15 OCT 170 Puts @$5.35
Total Credit: $1,020.00
Total Commissions/Fees: $6.49
Balance: $55,125.20


Wednesday, September 13, 2017

Closing Trade - 20 OCT ATVI 57.5/70 Strangle

Closing Trade [Opening Trade]
Bought: three 20 OCT ATVI 57.5/70 Strangles @$0.75

Total Debit: $225.00
Total Commissions/Fees: $0.85
Balance: $54,111.69
Trade P/L: $199.28
YTD Realized P/L: $9,006.26
YTD ROC: 27.9%


Monday, September 11, 2017

Trade Adjustment - 20 OCT MA 125/140 Strangle

Trade Adjustment [Opening Trade]
MA jumped to 140 this morning with the Market's rally so I decided to roll my 125 Puts up to 140 within the OCT expiration to create a straddle.

Rolled: three 20 OCT MA 125 Puts @ $2.40
  • Bought: three 20 OCT MA 125 Puts @$0.30
  • Sold: three 20 OCT MA 140 Puts @$2.70
Total Credit: $720.00
Total Commissions/Fees: $3.88
Balance: $54,337.54

Tuesday, September 5, 2017

New Opening Trade - 20 OCT MA 125/140 Strangle

Opening Trade
Sold: three 20 OCT MA 125/140 Strangles @$1.58

Total Credit: $474.00
Total Commissions/Fees: $6.87
Balance: $53,621.41



Friday, September 1, 2017

Closing Trade - 15 SEP XLE 64/64.5/65.5 Ratio Spread

Closing Trade [Opening Trade]
With 14 days left to expiration I decided to scratch the trade for a small profit.

Bought: five 15 SEP XLE 64/64.5/65.5 Ratio Spreads @$0.70

Total Debit: $350.00
Total Commissions/Fees: $2.17
Balance: $53,154.29  
Trade P/L: $45.65
YTD Realized P/L: $8,806.98
YTD ROC: 27.3%  


Thursday, August 31, 2017

August Month End Results

August Trade Results
Total Opening Trades: 5
Total Adjusted Trades: 5
Total Closed Trades: 3
Month Realized P/L: $825.80
YTD Realized P/L: $8,761.33
YTD ROC: 27.2%

Wednesday, August 30, 2017

New Opening Trade - 20 OCT SPX 2440 Calendar

Opening Trade
Bought: two 20 OCT SPX 2440 Calendars @$13.60

Total Debit: $2,720.00
Total Commissions/Fees: $7.31
Balance: $53,506.45


New Opening Trade - 20 OCT ATVI 57.5/70 Strangle [Closed]

Opening Trade
Sold: three 20 OCT ATVI 57.5/70 Strangles @$1.44

Total Credit: $432.00
Total Commissions/Fees: $6.87
Balance: $56,233.76



Friday, August 25, 2017

Closing Trade - 15 SEP XOP 30/31/32 Ratio Spread

Closing Trade [Opening Trade]
Decided to scratch the trade because I didn't collect enough premium when I originally put it on and would rather free up the buying power for a better opportunity.

Bought: five 15 SEP XOP 30/31/32 Ratio Spreads @$0.06

Total Debit: $30.00
Total Commissions/Fees: $2.16
Balance: $55,808.63
Trade P/L: $30.65
YTD Realized P/L: $8,761.33
YTD ROC: 27.2%


Wednesday, August 23, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][First Adjustment][2nd Adjustment][3rd Adjustment][4th Adjustment][5th Adjustment][6th Adjustment][7th Adjustment]
Rolled the 170 inverted Puts up to 175.

Rolled: five 15 OCT BABA 170 inverted Puts @$2.22
  • Bought: five 15 OCT BABA 170 Puts @$5.94
  • Sold: five 15 OCT BABA 175 Puts @$8.16
Total Credit: $1,110.00
Total Commissions/Fees: $1.52
Balance: $55,840.79


Monday, August 21, 2017

Closing Trade - 15 SEP PYPL 55/62.5 Strangle

Closing Trade [Opening Trade]
Bought: five 15 SEP PYPL 55/62.5 Strangles @$0.69

Total Debit: $345.00
Total Commissions/Fees: $1.42
Balance: $54,732.31
Trade P/L: $282.12
YTD Realized P/L: $8,730.68
YTD ROC: 27.1%


Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment][2nd Adjustment][3rd Adjustment][4th Adjustment][5th Adjustment][6th Adjustment]
Rolled my 165 inverted Puts up to 170 for an additional $2.25 credit.  The intrinsic value of the position is now 35.

Rolled: five 15 OCT BABA 165 inverted Puts @$2.25
  • Bought five 15 OCT BABA 165 Puts @$5.72
  • Sold five 15 OCT BABA 170 Puts @$7.97
Total Credit: $1,125.00
Total Commissions/Fees: $6.52
Balance: $55,078.73


Thursday, August 17, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment][2nd Adjustment][3rd Adjustment][4th Adjustment][5th Adjustment]
BABA announced earnings today pre-market and the stock jumped to $166.  I needed to roll my inverted Puts up to 165 in the October expiration to collect more credit on the trade.  My position now has an intrinsic value of $30 and with this roll I collected an additional $3.62, bring my total credit to $24.74.  After this I'll need to collect another $5.26 in future adjustments to break even on the trade.

Rolled: five 15 OCT BABA 155 inverted Puts @$3.62
  • Bought: five 15 OCT BABA 155 Puts @$3.24
  • Sold: five 15 OCT BABA 165 Puts @$6.86
Total Credit: $1,810.00
Total Commissions/Fees: $6.50
Balance: $53,960.25



Friday, August 11, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment][2nd Adjustment][3rd Adjustment][4th Adjustment]
Rolled my inverted Strangle out to October to collect an additional $3.16 in credit.  The total credit collected on the trade is now $21.12.  The inverted position has an intrinsic value of $20.00 (the difference between the 135/155 inverted strikes), so if I can buy the position back by October expiration for $21.12 I can scratch the trade, but if I can buy it back between $21.12 and $20.00, I can actually make a profit on the trade of up to $560.00.

Rolled: five 15 SEP BABA 135/155 Inverted Strangles @$3.16
Total Credit: $1,580.00
Total Commissions/Fees: $13.20
Balance: $52,156.35


Thursday, August 10, 2017

New Opening Trade - 15 SEP XLE 64/64.5/65.5 Ratio Spread [Closed]

Opening Trade
Sold: five 15 SEP XLE 64/64.5/65.5 Ratio Spread @$0.83

Total Credit: $415.00
Total Commissions/Fees: $17.18
Balance: $50,589.55



Tuesday, August 8, 2017

Closing Trade - 18 AUG RUT 1440 Put Calendar

Closing Trade [Opening Trade]
Sold: five 18 AUG RUT 1440 Put Calendars @$11.66

Total Credit: $5,830.00
Total Commissions/Fees: $3.57
Balance: $50,191.73
Trade P/L: $513.03
YTD Realized P/L: $8,448.56
YTD ROC: 26.2%


Wednesday, August 2, 2017

New Opening Trade - 15 SEP XOP 30/31/32 Ratio Spread [Closed]

Opening Trade
Putting on an XOP ratio spread for a credit of $0.16.  This trade has no risk to the upside because it was done for a credit, and has a max profit of $580.00 (distance between the long strike and short strike plus the credit received = ($1+$0.16) x 5 x 100 = $580.00).  Ratio spreads can be put on for a credit because you're selling more contracts than you're buying, in this case 2:1.

Sold: five 15 SEP XOP 30/31/32 Ratio Spreads @$0.16

Total Credit: $80.00
Total Commissions/Fees: $17.19
Balance: $44,365.30



New Opening Trade - 15 SEP PYPL 55/62.5 Strangle [Closed]

Opening Trade
Sold: five 15 SEP PYPL 55/62.5 Strangles @$1.28

Total Credit: $640.00
Total Commissions/Fees: $11.47
Balance: $44,302.49



Tuesday, August 1, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment][2nd Adjustment][3rd Adjustment]
Rolled my 135/155 inverted strangle to September to collect additional credit and get closer to break even.

Rolled: five 18 AUG BABA 135/155 Inverted Strangles @$3.60
Total Credit: $1,800.00
Total Commissions/Fees: $13.23
Balance: $43,673.95


Monday, July 31, 2017

July Month End Results

July Trade Results
Total Opened Trades: 3
Total Adjusted Trades: 1
Total Closed Trades: 3
Month Realized P/L: $1,152.07
YTD Realized P/L: $7,935.53
YTD ROC: 24.6%

Closing Trade - 18 AUG CRM 80/92.5 Strangle

Closing Trade [Opening Trade]
Bought: six 18 AUG CRM 80/92.5 Strangles @$0.88

Total Debit: $528.00
Total Commissions/Fees: $1.72
Balance: $41,887.18
Trade P/L: $466.52
YTD Realized P/L: $7,935.53
YTD ROC: 24.6%


Tuesday, July 25, 2017

New Opening Trade - 18 AUG RUT 1440 Put Calendar [Closed]

Opening Trade
Bought: five 18 AUG RUT 1440 Put Calendars @$10.60

Total Debit: $5,300.00
Total Commissions/Fees: $13.39
Balance: $42,416.90



Thursday, July 20, 2017

Closing Trade - 18 AUG OIH 23/27 Strangle

Closing Trade [Opening Trade]
Bought: ten 18 AUG OIH 23/27 Strangles @$0.38

Total Debit: $380.00
Total Commissions/Fees: $2.86
Balance: $47,730.30
Trade P/L: $244.22
YTD Realized P/L: $7,469.02
YTD ROC: 23.1%



Wednesday, July 19, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment][2nd Adjustment]
BABA continued it's surge up to $155 and today I decided to go inverted in the AUG cycle and roll my Puts up to 155, despite earnings being scheduled for 8/10.  Total credit received on this trade is now $14.36.  I'm targeting one more roll to collect at least $5.64 to scratch the trade at $20 (the intrinsic value of my 135/155 inverted Strangle).

Rolled: five 18 AUG BABA 135 Straddles @$5.40
  • Bought: five 18 AUG BABA 135 Puts @$0.65
  • Sold: five 18 AUG BABA 155 Puts @$6.05
Total Credit: $2,700.00
Total Commissions/Fees: $6.51  
Balance: $48,113.16




Wednesday, July 5, 2017

New Opening Trade - 18 AUG OIH 23/27 Strangle [Closed]

Opening Trade
Sold: ten 18 AUG OIH 23/27 Strangles @$0.65

Total Credit: $650.00
Total Commissions/Fees: $22.92
Balance: $45,419.31



Monday, July 3, 2017

New Opening Trade - 18 AUG CRM 80/92.5 Strangle

Opening Trade
Sold: six 18 AUG CRM 80/92.5 Strangles @$1.77

Total Credit: $1,062.00
Total Commissions/Fees: $13.76
Balance: $44,792.23



Closing Trade - 21 JUL SQ 19/25 Strangle

Closing Trade [Opening Trade]
Bought: fifteen 21 JUL SQ 19/25 Strangles @$0.33

Total Debit: $495.00
Total Commissions/Fees: $4.29
Balance: $43,743.99
Trade P/L: $441.33
YTD Realized P/L: $7,224.80
YTD ROC: 22.4%



Friday, June 30, 2017

June Month End Results

June Trade Results
Total Opened Trades: 2
Total Adjusted Trades: 2
Total Closed Trades: 4
Month Realized P/L: $1,142.92
YTD Realized P/L: $6,783.47
YTD ROC: 21.0%

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade][1st Adjustment]
Rolled the trade out to August expiration to collect additional credit, thereby moving out my break even points and increasing my POP.  New break even points: 126.04 on the put side and 143.96 on the call side.

Rolled: five 21 JUL BABA 135 Straddles @$5.63
  • Bought: five 21 JUL BABA 135 Straddles @$8.92
  • Sold: five 18 AUG BABA 135 Straddles @$14.55
Total Credit: $2,815.00
Total Commissions/Fees: $13.04
Balance: $44,243.29


Closing Trade - 21 JUL GGP 19.74/24.74 Strangle

Closing Trade [Opening Trade]
Bought: twenty 21 JUL GGP 19.74/24.74 Strangles @$0.43

Total Debit: $480.00
Total Commissions/Fees: $5.72
Balance: $41,441.33
Trade P/L: $328.45
YTD Realized P/L: $6,783.47
YTD ROC: 21.0%



Wednesday, June 14, 2017

Closing Trade - 21 JUL EWZ 30.5/39 Strangle

Closing Trade [Opening Trade]
Bought: nine 21 JUL EWZ 30.5/39 Strangles @$0.35

Total Debit: $315.00
Total Commissions/Fees: $2.58
Balance: $41,926.70
Trade P/L: $309.80
YTD Realized P/L: $6,455.02
YTD ROC: 20.0%


Friday, June 9, 2017

Trade Adjustment - 21 JUL BABA 110/135 Strangle

Trade Adjustment [Opening Trade]
Yesterday BABA jumped 12% because the company offered strong future sales guidance.  This tested my 135 Calls and caused my neutral position to immediately get short.  Instead of being mechanical and rolling up my 110 Puts when the stock price was around $138-$140, I waited until today, hoping the price would pull back a little.  That didn't happen and instead this morning the stock continued to rally to a high of $148.  I was able to roll up my 110 Puts to 135, when the stock was around $147, creating a straddle.  Then almost immediately, the market turned and the stock slowly declined to under $140.  So basically I rolled at the worst time and got the worst price.  Lesson learned - stay mechanical and manage trades early.  If I had rolled earlier I would have collected a couple thousand dollars more in premium and given myself a better chance to have a positive outcome for this trade.

Rolled: five 21 JUL BABA 110 Puts @$1.65
  • Bought: five 21 JUL BABA 110 Puts @$0.05
  • Sold: five 21 JUL BABA 135 Puts @$1.70
Total Credit: $825.00
Total Commissions/Fees: $6.46
Balance: $42,244.27



Monday, June 5, 2017

New Opening Trade - 21 JUL EWZ 30.5/39 Strangle [Closed]

Opening Trade
Sold: nine 21 JUL EWZ 30.5/39 Strangles @$0.72 (the original order was to sell 15 contracts but I only got a partial fill)

Total Credit: $648.00
Total Commissions/Fees: $20.63
Balance: $41,425.73



Closing Trade - 16 JUN EWY 64/70 Strangle

Closing Trade [Opening Trade]
This trade was a mistake on my part - on entry, it had a high POP but the Risk/Reward did not justify putting it on i.e. I wasn't receiving enough credit to justify the risk.  I decided to scratch the trade for a small profit to free up the buying power.

Bought: seven 16 JUN EWY 64/70 Strangles @$0.37

Total Debit: $259.00
Total Commissions/Fees: $2.00
Balance: $40,798.36
Trade P/L: $65.95
YTD Realized P/L: $6,145.23
YTD ROC: 19.0%


Thursday, June 1, 2017

New Opening Trade - 21 JUL GGP 19.74/24.74 Strangle

Opening Trade
Sold: twenty 21 JUL GGP 19.74/24.74 Strangles @$0.43

Total Credit: $860.00
Total Commissions/Fees: $45.82
Balance: $41,059.36


Closing Trade - 16 JUN TXT 46/50 Strangle

Closing Trade [Opening Trade] [1st Adjustment] [2nd Adjustment]
This trade started out as a 46/50 Strangle but ended up as a 47 Straddle after making two adjustments due to my strikes getting tested:
  • 1st Adjustment - 46 Put was tested so rolled down the 50 Call to 47 for an additional credit, creating a narrow Strangle
  • 2nd Adjustment - 47 Call was tested after rolling it down, so rolled up the 46 Put to 47 for an additional credit, creating a 47 Straddle 

Bought: eight 16 JUN TXT 47 Straddles @$1.78

Total Debit: $1,424.00
Total Commissions/Fees: $2.29
Balance: $40,245.19
Trade P/L: $438.72
YTD Realized P/L: $6,079.28
YTD ROC: 18.8%


Tuesday, May 30, 2017

May Month End Results

May Trade Results
Total Opened Trades: 6
Total Adjusted Trades: 2
Total Closed Trades: 4
Month Realized P/L: $1,737.55
YTD Realized P/L: $5,640.56
YTD ROC: 17.5%

New Opening Trade - 21 JUL BABA 110/135 Strangle

Opening Trade
Sold: five 21 JUL BABA 110/135 Strangles @$1.68

Total Credit: $840.00
Total Commissions/Fees: $11.47
Balance: $41,671.48


New Opening Trade - 21 JUL SQ 19/25 Strangle

Opening Trade
Sold: fifteen 21 JUL SQ 19/25 Strangles @$0.65

Total Credit: $975.00
Total Commissions/Fees: $34.37
Balance: $40,842.95


Friday, May 26, 2017

Closing Trade - 16 JUN ALLY 18/22 Strangle

Closing Trade [Opening Trade]
Bought: twenty five 16 JUN ALLY 18/22 Strangles @$0.23

Total Debit: $575.00
Total Commissions/Fees: $7.16
Balance: $39,902.32
Trade P/L: $310.57
YTD Realized P/L: $5,640.56
YTD ROC: 17.5%