Archives for January 2011

Trade Adjustment – bull put spread

Stock / Symbol: [private_monthly]Baidu / BIDU [/private_monthly] Option Strategy: diagonal call spread adjusting to bull put spread Entry date: Oct 26th; Price at trade entry: $113.09 1st Adjustment: Nov 24th with stock at $109.18 2nd [Read More …]

Trade Adjustment – diagonal call spread

Stock / Symbol: [private_monthly]United States Oil Fund / USO[/private_monthly] Option Strategy: diagonal call spread Price at trade opening: $37.40 Price at Jan 26 adjustment: $36.25 Price at this adjustment: $38.30 Adjustment: Due to the turmoil [Read More …]

Closing Trade – AMZN call back spread

Stock / Symbol: Amazon / AMZN Price at trade post: $181.44 Option Strategy: call back spread Max Risk: $1,770 (at Mar expiration) Max Reward: unlimited Profit Range: $0 – $181 & $217 + (at Mar [Read More …]

The power of selling options

Here’s a summary of our recently closed credit spreads. As we were selling closer to the money options and buying further out of the money options, we wanted the positions to expire worthless… and they [Read More …]

New Trade – call back spread

Stock / Symbol: [private_monthly]Amazon / AMZN[/private_monthly] Price at trade post: $181.44 Option Strategy: call back spread Max Risk: $1,770 (at Mar expiration) Max Reward: unlimited Profit Range: $0 – $181 & $217 + (at Mar [Read More …]

NFLX iron condor

We didn’t get filled at our desired limit price. Hopefully you did.

New Trade – bull put spread

Stock / Symbol: [private_monthly]Freeport-McMoRan / FCX [/private_monthly] Price at trade post: $108.47 Option Strategy: bull put spread Max Risk: $888 Max Reward: $112 or 12.6% by FEB expiration Profit Range: $99.44 + Max Reward Price: [Read More …]

New Trade – iron condor

Stock / Symbol: [private_monthly]Netflix / NFLX [/private_monthly] Price at trade post: $183.50 Option Strategy: iron condor Max Risk: $920 Max Reward: $80 or 8.69% by Jan 28th, 2011 expiration Profit Range: $150 – $220 Reasoning: [Read More …]

Trade Adjustment

Stock / Symbol: [private_monthly]United States Oil Fund / USO[/private_monthly] Option Strategy: diagonal call spread Price at trade opening: $37.40 Price at this adjustment: $36.25 Adjustment: The recent dip by[private_monthly] USO[/private_monthly] has squeezed most of the [Read More …]

Closing Trade – AXP diagonal call spread

Stock / Symbol: American Express / AXP Option Strategy: diagonal call spread Price at trade post: $43.87 Price at trade closing: $45.84 Max Risk: $764 Max Reward: $351 or 46% by Feb 2011 expiration Profit [Read More …]