Posted on September 8th, 2009 by
Mojo
On Friday my GTC order to close my single RIMM calendar spread was filled closing the trade for a profit of +10.8% in a little more than a week. This was a trade setup that I went over in our weekly trading room meeting on Aug 26th.
Originally this was intended to be a double calendar but RIMM was right at $75 so I started with the single and was prepared to add to the top or bottom as necessary. That adjustment was never needed as time decay and a sudden burst of volatility (aren’t all burst of volatility sudden!?!) pushed us into the profit zone early.
Happy Trading!
Mojo
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Posted on August 26th, 2009 by
Mojo
Yesterday afternoon I took advantage of the run down in pricing (and the run up in volatility) to close my NDX double calendar. This was the trade I mentioned on last week’s trading team meeting.
Originally, I was looking for a return of 10 to 15% in three weeks. When I was getting close to 10% in just a few days I thought it was best to go ahead and close it down. Unfortunately, fills were tough yesterday and my high side got closed first (while the market continued down) and I had to lower my credit and resubmit the low side several times to get out.
Either way, I’m happy with the return and glad to be out. I suspect that we will see some acceleration to the downside and that’s when I will put on my RUT IC.
Mojo
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Posted on July 14th, 2008 by
Mojo
OK, I finally hopped out of my long trade on First Solar. I entered with a synthetic long and sold calls against it to capture time decay and reduce my delta risk. I did pretty well in timing my adjustments and was able to lock in $15 of premium per contract. Here’s a graph of my entries and adjustments.
I entered on June 23rd and closed out this afternoon. I generated an actual ROI of +63.2% in three weeks and it was my first profitable long synthetic!
Mojo
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Posted on June 17th, 2008 by
Mojo
In our trading group there has been a lot of conversation regarding iron condors and the NDX. On May 15th I put on an iron condor on the NDX. Here’s the chart:
We were well away from Jun expiration, volatility was low (which I didn’t like for iron condors), trend was a bit bullish (which I also didn’t like). I purchased the 2200 calls and sold the 2150 calls to build my bear call spread. Then I purchased the 1800 puts and sold the 1850 puts to build my bull put spread. My total credit was 8.55 on a spread of 41.45 ($50 difference in strikes – initial credit of 8.55). My total maximum potential ROI was 20.6%.
So if I didn’t like the trend and didn’t like the vol why did I take it? Really to see if I could manage the trade by using some of credit premium to reduce delta risk and herd this one through the gates of profitability. Lucky for me I only made a couple of adjustments and the market cooperated. Here’s the chart today:
Today, with expiration right here I closed down the trade for an actual ROI of +16.9% in a little over 1 month. I’m surprised the time decay was able to overcome the adverse volatility movement. Sweet! 
Mojo
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Posted on June 13th, 2008 by
Mojo
I’ve been a little frustrated again with friends and family complaining about the price of gas and oil. In particular the very folks that are complaining are the same people that aren’t willing to spend a bit of time and effort to learn how to trade so that they can make their own money on the rising price of OIL.
My family spends about $500 a month on gas (neither my wife or commute) so I wanted to make gas money for the summer. Sort of like ’stick it back to the man’ if you will.
On of our trading team members was talking about an option trade USO, the US OIL index fund. I took the trade, did some management and just closed for a profit of +70.1% in just a few weeks. SWEET!
That will pay for all of our gas and treaties to boot. Cool!
Mojo
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Posted on May 28th, 2008 by
Mojo
IBM has returned to being a rocket ship today and yesterday. In the big 50 point futures rally at 3:30pm I was able to exit for a great credit.
I sold my long call and bought back my short call for an actual ROI of +186.4% in a few weeks! Man I love these technical setups!
Mojo
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Posted on May 28th, 2008 by
Mojo
Today I close my long call position on Nobel. This position was originally opened with a long Jun 60 call on May 8th following a bull flag technical setup. I sold both the May 65 and Jun 65 calls for extra credit.
I closed today for an actual ROI of +85% in three weeks!
Mojo
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