I've been focusing on day trading forex, so I haven't had too many entries this week...that and having the stomach flu slowed my options-trading down.
Earnings play:
FDO (10-7)-inv calendar w/bullish skew
-1 Apr 25p 2.22
+1 Oct 25 0.45
=1.77 credit
+6 Oct 30c 0.25 ea
=net credit 0.27
-with everyone out of money...the dollar store rules! We'll see how the market reacts...plus, I really need some +delta in my portfolio
ISRG (10-21)-inv butterfly
-1 Nov 240c
+2 Nov 260c
-1 Nov 280c
net credit of 2.95
-looking for ISRG to make a large move either way. I'm hoping the move is before earnings, so I can adjust and open up one side of the risk graph so I have limited risk with a +gamma position going into earnings. I'll keep you posted on this one.
Gamma scalp:
IWM +10 Oct 52p
net debit of 1.90
I couldn't help myself...call me an amature. As the market mildly retreated near the end of the day, I couldn't help but "bet" on direction for Monday. I'm just looking for about $100. If the market looks like it's going to make ANOTHER engulfing range, I'll turn the trade into a bear put spread (or ratio backspread)...I think with the 55 strikes (some nice support).
I also made a number of adjustments on existing trades. For example, I have a risk reversal on BAC (entered at end of May).
-1 Nov 20p
+10 Nov 20c
net credit of 0.50
This trade has been awesome because I've been able to continually take profit with 4 different adjustments. First, I made money when I bought-back the short put for about a 400 profit. Since then, I've turned this trade into/out of a call ratio backspread about 3 times on small up/down movements on the stock. I've been able to sell a number of ATM/ITM calls against my 10 Nov 20 calls. This morning, I took profit on 7 short 15 calls which bumped up my total risk on the trade to +350--that's right, I now have a minimum gain on 10 calls, not a maximum risk. Gamma scalpers rule and God is awesome. Of course, not every trade is this pretty, but when one goes right, it has the ability to be a major cash cow.
Happy Weekend. I wonder what's going to happen on Monday???
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Awesome job Shawnta, you definitely deserve it!
ReplyDeleteFDO--adjustment
ReplyDeleteFDO popped 5.72% today and (Praise God), I had 6 long calls. Calls went from .25 to .55--that's .30 profit on each. Now, the inv calendar portion of the trade is totally paid for and I have a minimum gain of $80 on the inv calendar because the total risk on the inv calendar was only about $100. So nice when trades pay for themselves. Hopefully, ISRG will do the same...
ISRG--slow and steady, no adjustment yet, no management necessary.
Got killed on the IWM gamma--esp. after today's rally, the options are almost worthless. I'm keeping them just in case we see a bearish engulfing range (prob not, but I've already almost paid for it).
Total profit on FDO is 2.24. Made an additional .44 on the short strangle this morning.
ReplyDelete