Thursday, August 20, 2009

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So my long straddles haven't really been working out too well, seems like the ones I pick don't move and the ones I sell strangles on move like crazy! Trying a couple more this week, we'll see what happens.

SHLD
Sold SEP 60/85 strangle for $2.40 yesterday, IV was pretty juiced with earnings reporting this morning. Looks like it will gap down about ten points at open today but will still be within the strikes.
UPDATE: Got out of this one at a 45 cent loss.

CRM
Bought a AUG 45 straddle for $3.45, this one is a pretty strong mover post earnings so maybe I'll get lucky this time.
UPDATE:
This one gapped nicely Friday morning, sold the call side for $6.90, $5.20 profit there. Maybe it'll refill before the close so I can get a few pennies for the put.
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6 comments:

  1. JustinAugust 22, 2009 at 10:34 AM

    So the two stocks I chose as long straddle candidates turned out to be the biggest movers of the day yesterday!

    CRM netted me a 200% return, but I got trigger happy on ARO and got out way too early, only a 12% return. I had to leave my pc and didn't want to miss it so I sold. ARO spiked way up the rest of the day and would've probably given me the same return as CRM had I waited.

    ReplyDelete
  2. ShawntaAugust 25, 2009 at 6:22 PM

    Hey Justin,
    JCG announces on Thursday.
    -1 Dec 40c
    -1 Dec 22.5c
    2.45 credit.
    This is my first short strangle since my major ISRG burn which ate 25% of my account. I was WAY over-leveraged (bad money management). I think a short strangle on a $30 stock is more to my cash account size.
    Cheers.

    ReplyDelete
  3. JustinAugust 25, 2009 at 9:08 PM

    I've straddled JCG in the past, with good results. I'm kicking myself for not letting ARO run, I should have just walked away and not managed it to death.

    ReplyDelete
  4. JustinAugust 25, 2009 at 9:12 PM

    I strangled MDT yesterday afternoon, I was amazed at how much value dropped out of the options day after earnings, with hardly any movement in the underlying! Sold it for $1.25, this morning it was worth about 65 cents.

    ReplyDelete
  5. JustinAugust 25, 2009 at 9:15 PM

    Shawnta, If you'd like to author your own posts instead of just replying to others, shoot me your email and I'll send you an author invite.

    ReplyDelete
  6. JustinAugust 25, 2009 at 9:18 PM

    Never mind, found it.

    ReplyDelete

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