We’re entering the following position this morning for March expiration: Day limit orderBuy to open 2 SPY April 139 callsSell to open 2 SPY March 139 callsBuy to open 2 SPY April 134 putsSell to open 2 SPY March 134 putsfor a net debit of $2.85 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 unbalanced positions. In…
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…
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…
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…
Tuesday, November 1, 2011
We’re hedging our current downside risk with the following butterfly trade: Day limit order Buy to close 1 SPY Nov 125 put Sell to open 2 SPY Nov 119 puts Buy to open 1 SPY Nov 113 put for a net debit of $1.21 or better. Note that the 1 contract specified above for the wings (long legs) represents half the number of contracts allocated to each leg of our current, double-diagonal position. Given the tendency…
Friday, October 28, 2011
We’re entering the following position for November expiration: Day limit order Buy to open 2 SPY Dec 137 calls Sell to open 2 SPY Nov 133 calls Buy to open 2 SPY Dec 119 puts Sell to open 2 SPY Nov 125 puts for a net debit of $0.15 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 not result in…
Wednesday, October 12, 2011
We’re opening the following position to hedge our upside delta and vega risk: Day limit order Buy to open 2 SPY Oct 130 calls Sell to open 4 SPY Oct 124 calls Buy to open 2 SPY Oct 118 calls for a net debit of $2.81 or better. Note that the 2 contracts specified above for the wings represent the number of contracts allocated to each leg of our core, double-diagonal position. Analysis: The resulting risk…
Monday, October 3, 2011
We’re hedging downside risk with the following butterfly position: Day limit order Buy to close 1 SPY Oct 113 put Sell to open 2 SPY Oct 103 puts Buy to open 1 SPY Oct 93 put for a net debit of $2.34 or better. Note that the 1 contract specified for the wings of the butterfly represents half the number of contracts in each leg of our core double-diagonal position. Analysis: As stocks continue to get…
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, February 17, 2012
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