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November 24, 2014

$GOOG - 11/24/2014

  • Strategy: Bull Put Spread
  • Underlying: GOOG
  • Trade: SELL -1 VERTICAL GOOG 100 JAN 15 495/490 PUT @.45 or better
  • Trade Price: $45 credit per spread
  • Margin: $455 per spread
  • Return on Risk: 9.89%
  • DTE: 53
Risk Profile:

November 20, 2014

$RUT - 11/20/2014

  • Strategy: Bull Put Spread
  • Underlying: RUT
  • Trade: SELL -1 VERTICAL RUT 100 DEC 14 1075/1070 PUT @.40 LMT
  • Trade Price: $40 credit per spread
  • Margin: $460 per spread
  • Return on Risk: 8.69%
  • DTE: 28
Risk Profile:

Looking for 80% of credit as profit target, if P/L goes to -$60 we'll look to exit.

November 18, 2014

$USO -11/18/2014

  • Strategy: Bull Put Spread
  • Underlying: USO
  • Trade: SELL -1 VERTICAL USO 100 DEC 14 26/23 PUT @.25 LMT
  • Trade Price: $25 credit per spread
  • Margin: $275 per spread
  • Return on Risk: 9.09%
  • DTE: 31
Risk Profile:

September 19, 2014

$TSLA - 9/15/14

  • Strategy: Bull Put Spread
  • Underlying: TSLA
  • Trade: SELL -1 VERTICAL TSLA 100 OCT 14 210/205 PUT @.30 LMT
  • Trade Price: $30 credit per spread
  • Margin: $470 per spread
  • Return on Risk: 6.38%
  • DTE: 32
Risk Profile:

September 12, 2014

$SPX - 9/8/14

  • Strategy: Bull Put Spread
  • Underlying: SPX
  • Trade: SELL -1 VERTICAL SPX 100 OCT 14 1860/1855 PUT @.35 LMT
  • Trade Price: $35 credit per spread
  • Margin: $465 per spread
  • Return on Risk: 7.52%
  • DTE: 38
Risk Profile:
SPX
SELL -1 VERTICAL SPX 100 OCT 14 1860/1855 PUT @.35 LMT

September 5, 2014

$AAPL - 9/3/14

  • Strategy: Bull Put Spread
  • Underlying: AAPL
  • Trade: SELL -1 VERTICAL AAPL 100 (Weeklys) OCT1 14 90/85 PUT @.35 LMT
  • Trade Price: $35 credit per spread
  • Margin: $465 per spread
  • Return on Risk: 7.52%
  • DTE: 30
Risk Profile:

August 29, 2014

$IWM - 8/27/14

  • Strategy: Bearish Put Calendar
  • Underlying: IWM
  • Trade: BUY +1 CALENDAR IWM 100 (Weeklys) OCT1 14/SEP 14 115 PUT @.65 LMT
  • Trade Price: $65 debit per spread
  • Margin: $65 per spread
  • DTE: 23
Risk Profile:
IWM (Russell 2000 ETF) rallied 6.5% from 8/4 and we're looking for a bit of reversion here. We're selling IWM 115 put that expires in September (Sep) and buying 115 put that expires on first Friday of October (Oct1). This trade benefits from being short delta, long vega and long theta, that means if IWM goes down short deltas will make money, long vega will make money from increase in Implied Volatility and theta will be making money from Sep options decaying faster than Oct1 options. We'll look to make 25% ROR, if IWM continues higher we'll look to add another round of calendars around 118 strike.

August 22, 2014

$SPX - 8/21/14

  • Strategy: Bear Call spread
  • Underlying: SPX
  • Trade: SELL -1 VERTICAL SPX 100 SEP 14 2045/2050 CALL @.40 LMT
  • Trade Price: .40¢ credit per spread
  • Margin: $4.60 per spread
  • Return on Risk: 8.69%
  • Stop loss: P/L down 1.5 X credit (-$60)
  • DTE: 28
Risk Profile:

August 8, 2014

$VXX - 8/8/14

  • Strategy: Bearish Put Calendar
  • Underlying: VXX
  • Trade: BUY +1 CALENDAR VXX 100 SEP 14/AUG5 14 32 PUT @.90 LMT
  • Trade Price: $90 debit per spread
  • Margin: $90 per spread
  • DTE: 21
Risk Profile:

We're selling Aug5(W) 30 put and buying Sep 30 put. Aug5 is a weekly option that expires in 21 days. This trade benefits from time decay in short option and increase in volatility because our long option has more time until expiry.

July 11, 2014

$RUT - 7/10/14

  • Strategy: Bull Put Spread
  • Underlying: RUT
  • Trade: SELL -1 VERTICAL RUT 100 AUG 14 1055/1050 PUT @.30 LMT
  • Trade Price: $30 credit per spread
  • Margin: $470 per spread
  • Return on Risk: 6.38%
  • DTE: 35
Risk Profile:

July 3, 2014

$RUT - 7/01/14

  • Strategy: Bear Call spread
  • Underlying: RUT
  • Trade: SELL -1 VERTICAL RUT 100 AUG 14 1275/1280 CALL @.40 
  • Trade Price: .40¢ credit per spread
  • Margin: $4.60 per spread
  • Return on Risk: 8.69%
  • DTE: 44
Risk Profile:


7/11 Update:

We're going to close RUT Aug 1275/1280 bear call spread for .05 or less:

BUY TO CLOSE VERTICAL RUT 100 AUG 14 1275/1280 CALL @.05 LMT



June 27, 2014

$GOOG - 6/23/14

  • Strategy: Bull Put Spread
  • Underlying: GOOG
  • Trade: SELL -1 VERTICAL GOOG 100 JUL 14 510/505 PUT @.45 LMT
  • Trade Price: $45 credit per spread (Max gain)
  • Margin: $455 per spread (Max potential loss)
  • Return on Risk: 9.89%
  • DTE: 25
  • Stop loss: P/L -$70 (1.55 X credit)
Risk Profile:


June 13, 2014

$SCTY - 6/12/14

  • Strategy: Bullish Call Butterfly
  • Underlying: SCTY
  • Trade: BUY +1 BUTTERFLY SCTY 100 JUL 14 50/55/60 CALL @.95 LMT
  • Trade Price: $95 debit per spread
  • Margin: $95 per spread
  • Max Return on Risk: 235%
  • Target Return on Risk: 20-30%
  • Stop Loss: P/L -(20-30%)
  • DTE: 36
Risk Profile:

June 6, 2014

$GS - 6/3/14

  • Strategy: Bullish Call Butterfly
  • Underlying: GS
  • Trade: BUY +1 BUTTERFLY GS 100 JUL 14 160/165/170 CALL @1.01 LMT
  • Trade Price: $100 debit per spread
  • Margin: $100 per spread
  • Max Gain: $400 per spread
  • Max Loss: $100 per spread
  • Max Return on Risk: 400%
  • DTE: 47
Risk Profile:

GS looks like if it breaks 162.50 level it can move up 5 points until next resistance level. We are going to look to make 20% return on margin before exiting this trade. We also don't want to risk much more than what we're looking to make. 

6/12/14 Update:

We're going to exit this trade :

SELL -1 BUTTERFLY GS 100 JUL 14 160/165/170 CALL @1.20 LMT


May 30, 2014

$GLD - 5/28/14

  • Strategy: Bearish Put Butterfly
  • Underlying: GLD
  • Trade: BUY +1 BUTTERFLY GLD 100 JUN 14 123/120/117 PUT @.80 LMT
  • Trade Price: $80 debit per spread
  • Margin: $80 per spread
  • DTE: 23
Risk Profile:

Trade:

We're entering a slightly bearish to neutral trade in GLD. We will look to add another put fly with GLD around 123 area.

May 23, 2014

$WFM - 5/22/14

  • Strategy: Bullish Call Butterfly
  • Underlying: WFM
  • Trade: BUY +1 BUTTERFLY WFM 100 JUL 14 37/40/43 CALL @.80 LMT
  • Trade Price: $80 credit per spread
  • Margin: $80 per spread
  • Return on Risk: 7.52%
  • DTE: 57
Risk Profile:

May 14, 2014

VLO Bull Put spread

  • Strategy: Bull Put Spread
  • Underlying: VLO
  • Trade: SELL -1 VERTICAL VLO 100 JUN 14 52.5/50 PUT @.42 LMT
  • Trade Price: $40 credit per spread
  • Margin: $210 per spread
  • Return on Risk: 19,04%
  • DTE: 38
Risk Profile:

Trade:

VLO had a pretty good size call buyer earlier today, we're going to do a simple bull put spread:

We need VLO above 52.10 by expiration.

January 28, 2014

$VXX Weekly Trade

  • Strategy: Bear Call spread
  • Underlying: VXX
  • Trade: SELL TO OPEN VERTICAL VXX 100 FEB 14 52/57 CALL @.38 LMT
  • Trade Price: .38¢ credit per spread
  • Margin: $4.62 per spread
  • Return on Risk: 8.22%
  • DTE: 24
Risk Profile:

Trade:

Comments:  VIX spiked from 13 to 19 since last week and now it's come down to 16 level. VXX is a product of VIX that goes up when short term volatility is higher than longer dated VIX contracts. Volatility had a big move up as investors panicked and bid up premium levels. This may be a decent opportunity to fade this move in VXX. Our goal will be to get full credit and if P/L goes -1.5X initial credit (.38 X 1.5 = .57 loss) we'll use that as our potential stop out level.