We're opening the following position to hedge our upside exposure:
Day limit order
Buy to open 2 SPY May 143 calls
Sell to open 2 SPY Apr 143 calls
for a net debit of $0.83...
Wednesday, January 25, 2012
We’re reducing our upside risk to adjust for this afternoon’s rally by rolling our position in the Feb/Mar 125 put calendar up to a call calendar at the 135 strike, with the following order: Day limit orderBuy to close 2 SPY Feb 125 putsSell to close 2 SPY Mar 125 putsBuy to open 2 SPY Mar 135 callsSell to open 2 SPY Feb 135 callsfor a net debit of $0.08 or better. Note that the…
Thursday, January 12, 2012
We’re adding to our February portfolio by opening a second double-calendar, as follows: Day limit orderBuy to open 2 SPY Mar 135 callsSell to open 2 SPY Feb 135 callsBuy to open 2 SPY Mar 129 putsSell to open 2 SPY Feb 129 putsfor a net debit of $2.38 or better. Note that 2 contracts is our base position for double-calendars. Trading whole-number multiples of the base-position size ensures that adjustments will not result in…
Friday, January 6, 2012
With the January put vertical spread closed, we have enough margin available to open the following position for February expiration: Day limit order Buy to open 2 SPY Mar 131 calls Sell to open 2 SPY Feb 131 calls Buy to open 2 SPY Mar 125 puts ell to open 2 SPY Feb 125 puts for a net debit of $2.40 or better. Note that 2 contracts is our base position for double-calendars. Trading whole-number…
Tuesday, January 3, 2012
Now that the condor adjustment order has been filled, we’re further hedging our portfolio with an unbalanced call butterfly. Here’s the order we’re placing for the new position: Day limit order Buy to open 2 SPY Jan 134 calls Sell to open 4 SPY Jan 130 calls Buy to open 2 SPY Jan 124 calls for a net debit of $2.85 or better. The 2 contracts specified for the “wings” (long legs) above represent the same…
Wednesday, December 21, 2011
We’re placing the following order for January expiration: Day limit order Buy to open 2 SPY Feb 130 calls Sell to open 2 SPY Jan 128 calls Buy to open 2 SPY Feb 119 puts Sell to open 2 SPY Jan 122 puts for a net debit of $1.10 or better. Note that 2 contracts is our base position for double-calendars. Trading whole-number multiples of the base-position size ensures that adjustments will not result…
Thursday, December 15, 2011
As discussed in this afternoon’s trade notice, we’re rolling out the short legs of this position by selling a double-diagonal, as follows: Day limit order Buy to close 2 SPY Dec 128 calls Sell to open 2 SPY Jan 127 calls Buy to close 2 SPY Dec 113 puts Sell to open 2 SPY Jan 114 puts for a net credit of $2.45 or better. Note that 2 contracts represent our entire short positions at…
Wednesday, December 14, 2011
We’re reducing our risk this afternoon by closing the call side of our December/January double-calendar, as follows : Day limit order Buy to close 2 SPY Dec 131 call Sell to close 2 SPY Jan 131 call for a net credit of $0.36 or better. Note that the 2 contracts specified above represent all of our current position in the Dec/Jan 131 call calendar portion of the 123/131 double-calendar. Analysis: I’m going to start off the analysis…
Tuesday, December 6, 2011
With SPY near $127, we’re neutralizing portfolio delta and selling some additional premium by rolling the short December 125 calls up to the 128 strike, with the following order: Day limit order Buy to close 2 SPY Dec 125 calls Sell to open 2 SPY Dec 128 calls for a net debit of $1.76 or better. Note that the 2 contracts specified above represent our entire short position in the Dec 125 calls. Analysis: Given the moderate,…
Wednesday, November 30, 2011
With implied volatility for SPY options back in the lower ¼ of its range since taking off in August, we’re opening a double-calendar as our second core position for this cycle, as follows: Day limit order Buy to open 2 SPY Jan 131 calls Sell to open 2 SPY Dec 131 calls Buy to open 2 SPY Jan 123 puts Sell to open 2 SPY Dec 123 puts for a net debit of $3.15 or better.…
Tuesday, November 22, 2011
We’re kicking off the December cycle by entering the following position: Day limit order Buy to open 2 SPY Jan 130 calls Sell to open 2 SPY Dec 125 calls Buy to open 2 SPY Jan 107 puts Sell to open 2 SPY Dec 113 puts for a net debit of $0.42 or better. Note that 2 contracts is our base position for double-diagonals. Trading whole-number multiples of the base-position size ensures that adjustments will…
Jared Woodard is a registered commodity trading advisor who specializes in trading volatility as an asset class. With over a decade of experience trading options, futures ... Read More
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Tuesday, April 17, 2012
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