A morning rally has lifted SPY close to the peak of our P/L curve, and we can close this position now at about the best price we’re likely to get without spending the entire day watching and worrying over every move the market makes. With that in mind, we’re placing the following order: Day limit order Buy to close 2 SPY Dec 123 puts Sell to close 2 SPY Jan 123 puts for a net credit of…
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…
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.…
Thursday, August 18, 2011
Technical indicators are weak across the board, so we’re closing this last calendar position, as follows: Day limit order Buy to close 2 SPY Aug 116 calls Sell to close 2 SPY Sep 116 calls for a net credit of $3.08 or better. The 2 contracts specified above represent our entire position in the Aug/Sep 116 call calendar. We plan to let the short Aug 119/125 call vertical expire worthless.
Thursday, August 18, 2011
With the market in free-fall, we have no interest in risking the profit we have in hope of a rebound. We’re closing the remainder of our August positions, beginning with the 122 call calendar: Day limit order Buy to close 4 SPY Aug 122 calls Sell to close 4 SPY Sep 122 calls for a net credit of $1.13 or better. Note that 4 contracts represent our entire position in the Aug/Sep 122 call calendar.
Wednesday, August 17, 2011
Now for a delta adjustment… This “adjustment” is actually a partial closing order, but because we’re hanging on to the portion at the 116 strike, this position—i.e., the Aug/Sep 116 call calendar that remains—is officially still open. To the point, we’re placing the following order: Day limit order Buy to close 2 SPY Aug 124 calls Sell to close 2 SPY Sep 124 calls for a net credit of $1.40 or better. Note that 2 contracts represent…
Tuesday, August 16, 2011
We’re trimming our upside risk by rolling half of the call calendar at 116 up to 124, with the following order: Day limit order Buy to close 2 SPY Aug 116 calls Sell to close 2 SPY Sep 116 calls Buy to open 2 SPY Sep 124 calls Sell to open 2 SPY Aug 124 calls for a net credit of $0.20 or better. Note that 2 contracts represent half of our position in the Aug/Sep 116 call calendar.
Friday, August 5, 2011
To keep up with the relentless selling, we’re rolling the DC #2 portion of our position at 122 down to 116, as follows: Day limit order Buy to close 4 SPY Aug 122 calls Sell to close 4 SPY Sep 122 calls Buy to open 4 SPY Sep 116 calls Sell to open 4 SPY Aug 116 calls for a net debit of $0.12 or better. Note that the 4 contracts specified above represent the…
Thursday, August 4, 2011
Today marks the first time since February 22 that NYSE volume breadth broke -1 million and stayed below that level through the first half-hour of trading–that’s not a good sign. We’re continuing to roll our calendar positions down to the 122 strike, starting with the following order: Day limit order Buy to close 2 SPY Aug 135 calls Sell to close 2 SPY Sep 135 calls Buy to open 2 SPY Sep 122 calls Sell to…
Wednesday, August 3, 2011
Now we’re rolling our position at 136 down to the 122 strike, with the following order: Day limit order Buy to close 2 SPY Aug 136 calls Sell to close 2 SPY Sep 136 calls Buy to open 2 SPY Sep 122 calls Sell to open 2 SPY Aug 122 calls for a net debit of $1.03 or better. Note,again, that 2 contracts represent our entire position in the 136 call calendar. Analysis: This afternoon’s…
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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Friday, December 16, 2011
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