mahkoh
1,065 posts
msg #143360
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4/26/2018 3:58:12 PM
Sold TSM Oct 36 put (1.95). Joining someone that placed a 600 K bet that it will still be above that price by the time the option expires.
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gmg733
788 posts
msg #143361
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4/26/2018 3:58:13 PM
4/19/2018 10:52:45 AM
I've been busy lately, so sorry for not posting updates or new trades.
STO May11 (weekly) HD 170 Put and 185 Call for 1.80 per one lot
manage at 40% max profit or manage accordingly
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Trade Adjustment Update: BTC May 11 HD 170 Put and STO May 11 Put for 2.30 per one lot.
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BarTune1
441 posts
msg #143362
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4/26/2018 5:38:24 PM
Thanks for the update Greg ... I looked at a couple of options (no pun intended) for rolling out although they didn't look all that attractive ... likely due to a collapse in IV after the "news" was out ... I'm not a novice at options but most of my experience has been with directional strategies or selling calls or puts directionally to capture premium.
I don't have as much experience on the vol trades which you seem to specialize in so I find your posts interesting. Calendar spreads interest me but the key is knowing what trade to take ... not the mechanics underlying them.
I just got a look at your post now but will probably try to follow along tomorrow morning. I think HD may end up pulling back making the original trade ok. However, obviously the risk/reward ratio here bad if the price moves up. Not taking action at this point is basically the same as making a directional bet!
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gmg733
788 posts
msg #143363
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4/26/2018 6:23:30 PM
Your delta in the trade is what tells you how directional you are in the trade. I'm now at -10 delta so I'm slightly short. If it does pull back you may sit still or roll that put up to the 30 delta or something effectively narrowing your strangle and getting more neutral on your delta. I think mine was at .23 which is giving me no help. So I rolled up. I should have waited till the morning since vol will be slightly higher on the open, but oh well.
Directional trades are 50/50 shots. I swing trade futures for that. Just me.
Vol trading is built on the premise that volatility is overstated and 90 plus percent of the time it is. That is my edge in options trading. So when vol pops up on something I wanna be a seller.
2017 was tough on options vol traders because the moves to the upside were outside of the expected range. I was delta neutral most of the year and did fine. Those who were delta short to hedge their short vega didn't have great years last year. 2015 was a monster year though that paid for whatever misgivings 2017 dealt them.
Its give and take for sure. For what it is worth I haven't had to adjust an options trade in over a month. about 1 out of 10 trades I usually have to manage. Not a big deal as long as the P/L cooperates. There are times when I'll give up but that is not very often. I think I did twice last year.
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gmg733
788 posts
msg #143411
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5/1/2018 2:43:23 PM
mahkok I'll play along
filled at 2.40
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johnpaulca
12,036 posts
msg #143412
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5/1/2018 3:44:27 PM
-You options guys should take a look at XRAY.
-LB at less than $35, this is dirt cheap.
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mahkoh
1,065 posts
msg #143414
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5/1/2018 4:09:15 PM
gmg733
743 posts
msg #143411
- Ignore gmg733 5/1/2018 2:43:23 PM
mahkok I'll play along
filled at 2.40
*********
Good luck to us!
We're in good company: This morning someone spent 550 K on the Aug 57,5 calls. Their timeframe is a bit longer, on the other hand we get to sell calls should we get assigned.
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gmg733
788 posts
msg #143415
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5/1/2018 4:15:20 PM
The way I trade options JP it isn't really a good vehicle. But it looks ripe for a stock purchase.
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mahkoh
1,065 posts
msg #143416
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5/1/2018 4:16:39 PM
johnpaulca
11,702 posts
msg #143412
- Ignore johnpaulca 5/1/2018 3:44:27 PM
-You options guys should take a look at XRAY.
-LB at less than $35, this is dirt cheap.
**************
XRAY earnings only a couple of days away..
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BarTune1
441 posts
msg #143420
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5/1/2018 10:36:14 PM
Thanks for the update Greg. I am on the road this week tied up in meetings for the most part. Ironically, dealing with derivative tax and valuation issues for a good part of it!
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