Were you naked on both of them? I'm just doing this for
the exercise at this point, but I didn't like the naked part of it.
I ended up lowering my profit quite a bit by doing a long
strangle outside the short strangle. What do you think of
that? Maybe GMCR was fresh in my memory and altered my
judgement. Mine only ended up $220 per strangle. Is
what I did a legit technique? Does it have a name?
that is cool. It really depends on your account
too. You can't really go naked calls in your IRA and you need
a ton of margin to go naked short in your IRA's .You
can get burned too on naked shorts.. I had to roll
3 590 google calls that I forgot to take off on
earnings awile back. Remember when Goog went from
like 520 to 600 on earnings? I rolled
those up and out for a credit. Finally got rid of them
on last earnings. I didn't lose money, but it wasn't
worth watching either and I didn't want to cover 180,000 in
stock so it was easier to roll it up and out in time for a credit.
knowing your "adjustments" are just as important as making
the trade
Yeah, I guess that's true. That GMCR move would have
submarined lots of naked strangles the other day. I'm sure
that's why the options were priced so richly!
I think he was shorting his own stock... I mean
really , he is like clockwork. I was too busy
with PCLN.. but I would have shorted it if I was paying attention.
He said something about slowing in Europe in the "Northern"
parts too. and the stock tanked.
How about we judge the market on Disney and News corp?
CSCO should be a buy soon around 16.5
I started filling them yesterday... and was using GTC orders to
get filled on both sides. I wish I was a little closer on
the call side.... but I really didn't feel like having to
cover a stock if it hit 850 overnight and had blow out
earnings like Apple
PCLN
Posted by zach06 on 9th of May 2012 at 04:07 pm
looks like you can send that commission check on the PCLN trade this way.. LOL
What did you do? I sold next week's 815/620 strangle.
Posted by lessarda on 9th of May 2012 at 04:13 pm
Were you naked on both
Posted by kalinm on 9th of May 2012 at 04:19 pm
Were you naked on both of them? I'm just doing this for the exercise at this point, but I didn't like the naked part of it. I ended up lowering my profit quite a bit by doing a long strangle outside the short strangle. What do you think of that? Maybe GMCR was fresh in my memory and altered my judgement. Mine only ended up $220 per strangle. Is what I did a legit technique? Does it have a name?
PCLN
Posted by wout on 10th of May 2012 at 09:21 am
Looks like that should come out ok on the volatility crush this morning
so you basically had a 2 credit spreads???
Posted by zach06 on 9th of May 2012 at 04:25 pm
that is cool. It really depends on your account too. You can't really go naked calls in your IRA and you need a ton of margin to go naked short in your IRA's .You can get burned too on naked shorts.. I had to roll 3 590 google calls that I forgot to take off on earnings awile back. Remember when Goog went from like 520 to 600 on earnings? I rolled those up and out for a credit. Finally got rid of them on last earnings. I didn't lose money, but it wasn't worth watching either and I didn't want to cover 180,000 in stock so it was easier to roll it up and out in time for a credit. knowing your "adjustments" are just as important as making the trade
So you did an iron condor. That's not bad.
Posted by lessarda on 9th of May 2012 at 04:22 pm
I just went a little less than twice the expected move on both sides as the risk control.
Yeah, I guess that's true.
Posted by kalinm on 9th of May 2012 at 05:05 pm
Yeah, I guess that's true. That GMCR move would have submarined lots of naked strangles the other day. I'm sure that's why the options were priced so richly!
I would only short puts on High Quality Stocks with increased earnings.
Posted by zach06 on 9th of May 2012 at 07:00 pm
Zach what did the Cisco
Posted by steve on 9th of May 2012 at 07:51 pm
Zach what did the Cisco Kid (Chambers) say this time?
You knew he was going to say something, didn't you...
Posted by zach06 on 9th of May 2012 at 09:02 pm
I think he was shorting his own stock... I mean really , he is like clockwork. I was too busy with PCLN.. but I would have shorted it if I was paying attention. He said something about slowing in Europe in the "Northern" parts too. and the stock tanked. How about we judge the market on Disney and News corp? CSCO should be a buy soon around 16.5
I was at 850 and 635 with a couple hedges.
Posted by zach06 on 9th of May 2012 at 04:15 pm
looks like it will clear around 4500.00 or so tomorrow when I close it out
Nice. I collected $840 per strangle.
Posted by lessarda on 9th of May 2012 at 04:17 pm
I didn't sell them at the same time So I got a bit more.
Posted by zach06 on 9th of May 2012 at 04:20 pm
I started filling them yesterday... and was using GTC orders to get filled on both sides. I wish I was a little closer on the call side.... but I really didn't feel like having to cover a stock if it hit 850 overnight and had blow out earnings like Apple
Haha. Well done -- sure
Posted by kalinm on 9th of May 2012 at 04:09 pm
Haha. Well done -- sure you don't need it after making that trade for real!
well.. tips are appreciated...
Posted by zach06 on 9th of May 2012 at 04:13 pm
My 6 year old still has a lot of school to pay for. Lots hope there is some volitility in PCLN tomorrow. need some more premium!