Calendar’s can be a good way to trade a range bound security. A Calendar involves selling a short term option at a closer time frame and purchasing a longer term options at the same strike expiring a number of weeks/months later. You can place a calendar using either calls or puts. I usually base which […]
Author: Jim Dawson
SRPT Covered Call
I was in this trade much longer than usual. Started it on 11/11/16 with SRPT trading at $40.01. I saw the stock drop as low as $27.75 during the trade but I stayed in it. Normally I would have closed with a stop loss but SRPT and I are old friends and I have ridden […]
RUT Look Back Trade
RUT 6/10/2016 On 6/10 the market had made a pretty good move down after an uptrend. I still believed that the market was in an uptrend and wanted to take advantage of the pull back to ‘leg’ into an Iron Condor. Legging in means that you place one side of the trade without initially placing […]
XLE Time Decay Spread Look Back Trade
XLE – 6/16/2016 XLE was in a downtrend still trading above its 50 day moving average which could cause a bounce up but I felt there was strong resistance at $70.00 with XLE trading at $66.55. I decided to place a spread trade to take advantage of what I felt was a range bound security. […]
Heating Oil Credit Spread Look Back Trade
HO (Heating Oil) – 6/14/2016 This was a commodity trade I made in June. Commodities tend to trend better and more often than stocks and can be a good way to trade options. You have to be careful because of risk and assignment ramifications if you do not completely understand commodities. I do not recommend […]
AMZN Time Decay Spread Look Back Trade
AMZN – 6/28/16 On 6/28 I decided to place a Put spread on AMZN. I really like these types of trades but they are very difficult to get into without taking too much risk. You need to be fairly certain that the stock is either in a stable range or moving down. An up move […]
MSFT Time Decay Spread Look Back Trade
MSFT – 06/17/2016 I debated not including this trade in the book but after some thought decided to include it. This trade is another debit spread trade where I am trying to take advantage of time decay. The problem is I traded this one backwards. That is what happens when you do not double check […]
Trade4Profits: Watch Me Trade
This is the second book in our Trade4Profits series. This is a unique book because it shows you actual trades from our trade journal. You can literally look at our trades through our eyes. Trade4Profits – Watch Me Trade There are lots of books out there on trading but how many of them teach you […]
SPY Spread Look Back Trade
SPY 06/03/2016 In addition to the SPY trade above I also traded one with a shorter time frame and with the short ‘in the money’. The one above I had about four weeks between the strikes. That gave me room to continue to sell against my Long position or the ability to wait for them […]
SPY Spread Look Back Trade
SPY 6/3/2016 I made one more SPY trade on 6/3/16 in order to show the difference in how different time frames and strikes worked on this type of trade. When I entered this trade SPY was at $210.48 and like above I felt that it was going to move down off of a retrace. On […]
