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09-28-2014, 04:15 PM
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#31
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Registered User
Join Date: Mar 2007
Location: Manhattan
Posts: 3,826
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It got up to about 198.40, thus, the 1.39.
Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.
__________________
“Life does not ask what we want. It presents us with options”
― Thomas Sowell
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09-28-2014, 07:49 PM
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#32
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Registered User
Join Date: Jan 2007
Posts: 1,133
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Quote:
Originally Posted by badcompany
It got up to about 198.40, thus, the 1.39.
Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.
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My post had nothing to do with any of your assumptions. It was merely to confirm that 10-1 is possible on the last day of expiration, as I stated in a post last week. It was about leverage and that was my only intent if you read my previous posts.
Sorry for the confusion. I didn’t have it.
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09-28-2014, 08:00 PM
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#33
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Buckle Up
Join Date: Apr 2014
Posts: 10,614
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Quote:
Originally Posted by badcompany
It got up to about 198.40, thus, the 1.39.
Had you caught a nice chunk of the big up move, it was a good day. Of course, it's always easier after the race, as it assumes that you didn't bite on the two previous false breakouts earlier in the day, and that you didn't jump to the short side when the market started heading down.
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Three tough decision hurdles to jump, and you have to be right on all 3 to get the biggest pay-off. I doubt that even the most seasoned of investors could do it. The temptation to take down the smaller sure-wins would be too great.......
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09-29-2014, 10:06 AM
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#34
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Just got into my October trade (Nov expiration):
Buy to Open 1 RUT NOV 22 2014 1140.0 Put Net Debit 49.34 -- -- 09:59:16 09/29/14
Sell to Open 2 RUT NOV 22 2014 1090.0 Put Net Debit 26.40 -- -- 09:59:16 09/29/14
Buy to Open 1 RUT NOV 22 2014 1040.0 Put Net Debit 13.36 -- -- 09:59:16 09/29/14
Buy to Open 1 IWM NOV 22 2014 108.0 Call Limit 4.73 -- -- 10:00:06 09/29/14
I'll update this thread with any adjustments and let everyone know how it goes...
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09-29-2014, 01:26 PM
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#35
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tmrpots
Join Date: Jun 2008
Posts: 2,285
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Quote:
Originally Posted by PaceAdvantage
Just got into my October trade (Nov expiration):
Buy to Open 1 IWM NOV 22 2014 108.0 Call Limit 4.73 -- -- 10:00:06 09/29/14
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What would happen (other than having to outlay a lot more money) if you bought, say a 55 strike IWM call for around $55.55. The extrinsic value being only .55˘ vis-a-vis the over $2 premium with the 108s?
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09-29-2014, 01:52 PM
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#36
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Quote:
Originally Posted by barn32
What would happen (other than having to outlay a lot more money) if you bought, say a 55 strike IWM call for around $55.55. The extrinsic value being only .55˘ vis-a-vis the over $2 premium with the 108s?
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If something cataclysmic happened and the Russell opened up 200 points down one morning, I'd be out a helluva lot more money if I decided to bail. That's for starters...
What would be the benefit of spending so much more for essentially similar protection to the upside?
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09-29-2014, 02:12 PM
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#37
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tmrpots
Join Date: Jun 2008
Posts: 2,285
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Quote:
Originally Posted by PaceAdvantage
If something cataclysmic happened and the Russell opened up 200 points down one morning, I'd be out a helluva lot more money if I decided to bail. That's for starters...
What would be the benefit of spending so much more for essentially similar protection to the upside?
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Not sure really, but good point.
It was mentioned in this video, and that's where I got the idea.
http://optionstribe.com/2012/01/reco...rest-anderson/
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09-30-2014, 10:32 AM
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#38
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tmrpots
Join Date: Jun 2008
Posts: 2,285
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Quote:
Originally Posted by barn32
But there is also this...
$30 per month minimum commission requirement to avoid $10 monthly fee (rises to $20 monthly if account balance is less than $2,000)
$10 monthly for market data feed (waived if trade commissions are more than $30 per month)
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Inactivity fees are waived for the first three months.
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09-30-2014, 11:12 PM
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#39
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Snapshot of trade with vital statistics:
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10-01-2014, 11:03 PM
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#40
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Probably wondering how the position fared on such a dismal day:
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10-01-2014, 11:05 PM
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#41
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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And don't ask me why the P/L since open adds up to ~$30 instead of ~$36, as you might think it should if you add today's P/L to yesterday's open P/L...daily P/L isn't 100% accurate for whatever reason it seems.
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10-07-2014, 09:30 AM
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#42
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Another update before the market opens today:
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10-07-2014, 07:47 PM
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#43
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tmrpots
Join Date: Jun 2008
Posts: 2,285
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I made the same trade, however my entry point was a few days later and in the middle of that -250 point Dow drop.
Maybe I got bad fills or something, (the call fills should have been good) but I'm still underwater. But if you look at the T+23 line (23 days from now) the profits will start to come in if it stays under the tent and in a good range. (But it looks like my max profit at that point will be $446.)
These are my numbers:
1010 $11.09 1
1060 $21.99 (2)
1110 $42.16 1
107 $4.17 1
Divide those profit numbers (which are T+23) on OptionVue by 10, because in order to use OptionVue for analyzing the trade I had to do a ten lot so I could hedge with 1 Rut call.
Last edited by barn32; 10-07-2014 at 07:56 PM.
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10-08-2014, 02:29 PM
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#44
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tmrpots
Join Date: Jun 2008
Posts: 2,285
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Quote:
Originally Posted by PaceAdvantage
And don't ask me why the P/L since open adds up to ~$30 instead of ~$36, as you might think it should if you add today's P/L to yesterday's open P/L...daily P/L isn't 100% accurate for whatever reason it seems.
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Not sure, but I think it has to do with the bid/ask spread during the trading session and the last price for the close.
The last price can be quite far away from where it's actually trading especially for the higher priced options well in the money.
The spread for my NOV 1110 put varies from $1 to $2. (As I write this the spread is $1.30--$41.80/$43.10
And on IB the running P and L uses the ask price, which you'll never get.
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10-08-2014, 11:23 PM
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#45
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PA Steward
Join Date: Mar 2001
Location: Del Boca Vista
Posts: 88,624
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Update after two straight days of MAJOR swings...this is what I love about trading this way...big swings up and down and my trade was never in danger of having to be adjusted...I was never in the red at any point...obviously, if we had gone down another 200+ points on the DOW today instead of up 200+ points, I would probably be looking at an immanent adjustment...but, that's not what happened:
Last edited by PaceAdvantage; 10-08-2014 at 11:28 PM.
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