Chris; RE:" tRaDeZ "
Man, you're doing LEAPS and bounds there!
>Net on TSM +396 (by selling march 25 puts @1 1/8 and
selling Apr 25 covered calls for 1 1/8)...
cool - a short straddle : you make money if nothing happens. Also a calendar spread - woulda taken me forever to calculate all that, Chris!
Class: Precicion.
Synthetics: Short CALL A, Short PUT A.
When to Use: If market is near A and you expect prices are stagnating. Because yu are short options, you reap profits as they decay - as long as the market remains near A.
Profit Characteristics: Profit maximized if market, at expiration, is at A. Maximum profit is credit taken from establishing position.
Loss Characteristics: Loss potential is open-ended, in either direction. Position, therefore, must be closely monitored and readjusted to delta neutraliy if prices begin to drift away from A.
Decay Characteristics: Because you are only short options, you pick up time-value-decay at an increasing rate as expiration nears, maximized if market is near A... break/even is A +/- profit from options sale.
My trades were a little more pedestrain today, Chris...
Bought-to-Open 35 QQAQH ASND May 40 PUTs @ 13/16; $2,843.75 yesterday.
Sold-to-Close 30 QQAQH PUTs @ 1; $3,000.00 net = pizza and tip!
Holding the remaining 5 QQAQH PUTs in profit portfolio.
Little FIBR started to launch this AM, then pooped out on all the negative waves, man (^_^). Throw a 100K block at him, will ya Chris? ( like tryin' to kick start a Harley on a cold morning :-)
-Steve |
