GOOG – 07/01/2016 GOOG was trading at $699.98 and I felt it was reaching the top of its range. I decided to place a variation of a Bear Call spread to take advantage of that as well as time decay. On 7/1 I sold the $735 Call for $0.15 and Bought the $745 Call for […]
Author: Jim Dawson
When a Debit Spread goes bad even when it is right.
On June 2017 I entered into a debit spread on STMP. I bought the JAN18 $140.00 calls and sold the JAN18 $160.00 calls against them for a debit of $8.78. STMP was trading at $142.40.0 STMP has gone up as high as $154.00 since I entered the position and I have still not been able […]
REGN Bull Put Credit Spread Look Back Trade
REGN – 6/30/16 On 6/30 I decided to place an aggressive Bull Put Credit spread on REGN based on a momentum strategy I seldom use. The reason I seldom use it is because it is higher risk than the strategies I prefer. This trade is usually made on a Wednesday or Thursday afternoon with options […]
QQQ Time Decay Spread Look Back Trade
QQQ – 6/17/2016 I entered this trade at the same time as the one above, the correct way. The mistake I made on this one was I traded with the assumption that Britain would not vote to leave the Euro. I thought the market would slowly move up, which it did but only after it […]
Calendar
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 […]
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 […]
