Post by Admin on Jan 22, 2015 23:08:40 GMT
JAN 20 UPDATE:
initiated jan 30 106/107 bull call - -0.62. a but higher than what i wanted.
max return: 0.38
ROC: 61%
trade update: currently ITM. @ 108.
Initiated jan 23 bear call 111/110 - -0.16. lower than I wanted.
max return:16
roc: 19
STD: 6.00
Probability of ITM 68%.
strategy update: will continue with strategy implementation. need to initiate bull put spread at 102/101.
IF AAPL rises to 110.16, will initiate 112/113 bear call spread. Close the long 111 for profit.
Attempt to initiate 104/103 bull put spread.
Closed @0.73 per lot for $9 profit.
UPDATE: JAN 23 2015
Lessons learned:
Things that worked:
1) time frame. For earnings, it is best to initiate positions 1 week and 2 weeks before date.
2) Short positions should be entered to expire after the earnings date, due to higher vol.
3) Long positions should be entered to expire before earnings release if possible.
4) stock pulled back to known support line.
5) daily charts.
6) contingency plan worked. Was able to open a bull put spread for 0.07 and a bear call spread for 0.22. However, the bear call spread did not go accordingly. The spread should have been at 113/114, which would have been evident had I waited for a 0.5 std move.
Lessons learned
- I was bullish on apple because of the pull back from the highs on the chart. I noticed this but ignored it. listen to charts
- due to the rally, the theoretical value was $100 - debit, with max profit of $40. I closed this position to eliminate the risk of time left. I ended up closing at an amount lower than what should've been received. I shouldve been able to close it at $80+ per lot, which would
2) When entering debit spreads, I should try to enter the spread at 0.5 std below current stock price after a down day. This should give a theoretical value of 68% probability. These trades should be entered for no more than $60 (on a 1.0 wide spread).
initiated jan 30 106/107 bull call - -0.62. a but higher than what i wanted.
max return: 0.38
ROC: 61%
trade update: currently ITM. @ 108.
Initiated jan 23 bear call 111/110 - -0.16. lower than I wanted.
max return:16
roc: 19
STD: 6.00
Probability of ITM 68%.
strategy update: will continue with strategy implementation. need to initiate bull put spread at 102/101.
IF AAPL rises to 110.16, will initiate 112/113 bear call spread. Close the long 111 for profit.
Attempt to initiate 104/103 bull put spread.
Closed @0.73 per lot for $9 profit.
UPDATE: JAN 23 2015
Lessons learned:
Things that worked:
1) time frame. For earnings, it is best to initiate positions 1 week and 2 weeks before date.
2) Short positions should be entered to expire after the earnings date, due to higher vol.
3) Long positions should be entered to expire before earnings release if possible.
4) stock pulled back to known support line.
5) daily charts.
6) contingency plan worked. Was able to open a bull put spread for 0.07 and a bear call spread for 0.22. However, the bear call spread did not go accordingly. The spread should have been at 113/114, which would have been evident had I waited for a 0.5 std move.
Lessons learned
- I was bullish on apple because of the pull back from the highs on the chart. I noticed this but ignored it. listen to charts
- due to the rally, the theoretical value was $100 - debit, with max profit of $40. I closed this position to eliminate the risk of time left. I ended up closing at an amount lower than what should've been received. I shouldve been able to close it at $80+ per lot, which would
2) When entering debit spreads, I should try to enter the spread at 0.5 std below current stock price after a down day. This should give a theoretical value of 68% probability. These trades should be entered for no more than $60 (on a 1.0 wide spread).