This was a very short term credit spread. The idea is to take advantage of a stock’s momentum in a particular direction and then take a very short term trade taking advantage of that. I like to stay in these trades 2 days or less if possible. You could trade these over 5 days but […]
Author: Jim Dawson
NCR – 4/26/2017 Look Back Trade
This is a debit spread I placed in NCR based on their chart. I thought there was good potential for them to continue to move up over the short term. I entered the trade on 4/26/17 with NCR trading at $40.57. Two days later it was at $41.64 and seemed to be losing momentum. I […]
SKX 10/14/2016 Look Back Trade
I purchased a bear put spread on SKX as a hedge against my long covered call position that was losing money in this stock. I probably should have just closed the covered call position previously instead of working all the hedges. I was concerned about a potential down move in SKX that would further deteriorate […]
New High Runner
I have been trading a new strategy over the six months. I am calling it New High Runner until I figure out a better name. Feel free to suggest a better name in the comments. Like the name says, I am looking at stocks showing strength over the past year and trading at close to […]
The Complete Guide to Option Selling
The Complete Guide to Option Trading – How Selling Options can Lead to Stellar Returns in Bull and Bear Markets by James Cordier & Michael Gross is a good book on selling futures options. The book gives you good insight into the way options work as well as the classic, “you make money by selling […]
Iron Condor Update
The Iron Condor is one of my favorite strategies. If you do know what an Iron Condor is, Click Here. If you do then you know the power of the Iron Condor trade. I rarely hold my Condor’s until expiration, my goal is to take advantage of time decay and close the position as early […]
WMT 10/2016 Look Back Trade
WMT – 10/7/2016 This was a bull call spread I placed on WMT. This was a debit spread meaning I had to pay out to get it. My hope was that WMT would continue up. This was an add on trade to reduce some losses I had taken on a WMT covered call position I […]
GLD – 10/2016 Lookback trade
GLD – 10/06/1016 GLD had been gaping down and I decided to take a chance that it had bottomed out. Somewhat risky trade, but it worked out. I ended up with a pretty good return although trading a stock based on the fact you think it has bottomed out is not always the best idea. […]
SPX – 9/9/16 Look Back trade
SPX – 09/09/2016 This was a bull put spread I entered after the market spiked down. The increased volatility gave me good premium so I took the trade. I was going to try and turn this into an iron condor by adding the calls but I never saw a good enough opportunity. I had such […]
SKX 9/8/16 Look Back Trade
SKX – 09/08/2016 This was a bear call spread that I actually sold to help improve a covered call position I had in SKX. SKX was not performing well in my covered call portfolio so I decided to place a hedge trade. If SKX stayed the same or went down then I would make money […]
