The Week in Crayons
I mentioned last week that our near term highs were likely to contain price this week as the markets further consolidated the massive gains we have seen over the last several months. Well, I was way off. That near term range was successful in containing price action for an entire day this week before giving way as most of the major indexes surged to new highs for the year. Of course, that is why traders should always consider several scenarios when analyzing their trading plans for the coming days/weeks and be sure to analyze the likely...
read moreshorting $SPY 139 calls same contract amount as the long on 137 calls
/s shorting $SPY 139 calls same contract amount as the long on 137 calls, this is like locking in the profits on the 700% gain we have on $SPY 137 calls but we still have the 140 calls that can bring us more profit if we continue up. did it after market since options trade an additional 15 min on SPY.
read moregoing bearish AAPL by buying $AAPL 555 weekly puts at 5.00 area OVERSIZED and shorting $AAPL 600 calls at 10.00 same contract amount of the long 605 stake, both next week expire options
/b going bearish AAPL by buying $AAPL 555 weekly puts at 5.00 area OVERSIZED and shorting $AAPL 600 calls at 10.00 same contract amount of the long 605 stake, both next week expire options. I am down badly on the long calendar side 605 next week calls, of the 590 this week expire tomorrow calendar credit spread but it is offset by the larger iron condor also expiring this week. I am not sure AAPL is ready to pullback but my formulas have just now gone multi day negative so wish to no miss the possibility of a sharp retrasement after the rally...
read morecreating $AAPL credit spread by shorting $AAPL 595 march calls at 3.15 trough $AAPL 600 march calls at 2.80 area oversized the spread. am taking advantage of this huge premium spike on $AAPL very far out of the money calls
/s creating $AAPL credit spread by shorting $AAPL 595 march calls at 3.15 trough $AAPL 600 march calls at 2.80 area oversized the spread. am taking advantage of this huge premium spike on $AAPL very far out of the money calls to short the premium for believe that her moving that high seams unlikely. But since we have had huge strength as of late if we were to push higher passed 585 then would look to also short AAPL puts focusing on the 570 puts trough the 575 puts to move us into a iron condor. I would only move into an iron condor though if...
read moreexiting $AAPL butterfly strategy at .71 spread
/s exiting $AAPL butterfly strategy at .71 spread. anywhere between AAPL 550 and 555 would be very profitable AAPL but at 559 it goes back towards even . with the strategy making a slow move up more profitable than a fast move up. today we saw a very fast move up so ended up exiting flat the AAPL butterfly strategy
read moreThe Week in Crayons
The monotony of the endless stair case up in the markets was finally broken this week as price action for the first time in months saw a substantial albeit quick retracement. While most of the selling took place in one day of controlled selling, we bounced throughout the rest of the week and find ourselves very close to the point in which we began the week. However, the one day of true distribution was able to change the technical landscape of most of our major indexes and is likely to be followed by other days of sporadic selling in the next...
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