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Saturday, January 29, 2011

AMZN, NFLX: big movers on earnings

My most recent trades (AMZN & NFLX) turned out to be a mess. I am just a newbie....out here trying to learn everything I can while paying nothing to nobody ever! It is a good goal, but also a tough one, but I am entirely sure that all the sea of knowledge you need is out there somewhere on the internet, by little pieces here and there, and with good work, you can become knowledgeable without paying thousands for courses and information that with a little effort can be found for free.

Thursday, January 27, 2011

How to play AMZN earnings

AMZN earnings report are due today at 4pm. After that time, and probably more obvious tomorrow, volatility in the front month options will come down from the astronomic levels they are in and this will be reflected in those options losing value. Let's check out an opportunity to short those options.

Tuesday, January 25, 2011

How to play NFLX earnings

I don't know in the past but at least today, front month volatility in the January weekly options has sky rocketed, while February volatility remains comparatively lower. So, I started to play around with Calendars, selling front month options and buying under-priced February options for protection, just to see different profit pictures and there is one that definitely caught my eye and I think it has potential to be the best play overall analyzed in this blog, for several reasons, but mainly the good profitability range, good risk/reward and probability of success.

Iron Condor on SPX, trade closed (January)

All right, this trade was closed by parts yesterday during afternoon hours. By the way this is a follow up on the trade started here with an adjustment made later and described here

Saturday, January 22, 2011

Tip to close an Iron Condor (Part 1)

The purpose of this article is to explain an automatic an easy way to close an Iron Condor. It is true that the Iron Condor is a passive strategy which doesn't generally need constant surveillance. You set up your trade and you try to achieve a good profitability range where you are safe. Often times this range is good enough so as not to be overly worried about your play, making you effectively detached from the markets for a while....

Wednesday, January 19, 2011

Playing AAPL Earnings with options - Trade Closed

Steve Jobs taking a vacation due to health problems is not fresh news anymore, AAPL earnings are behind and part of history,....with all the ghosts gone, the inevitable happened, options volatility in February just crashed, and with it, January expiration options went down substantially, which is great because we were shorting a couple of them, the 335 PUT and the 350 CALL. This is a follow up to the trade started here yesterday.

Tuesday, January 18, 2011

Playing AAPL Earnings with options

Well, well, well, earnings seasons fellas!! Lovely.
Taking a look at the volatility numbers of AAPL, the January options, yes the ones that expire in 3 days have caught the attention of investors and the interest has just been sky rocketing, with mixed news of earnings, plus their CEO taking some vacs due to medical reasons. This interest in the options have made volatility explode which translates into options being over-priced a.k.a too expensive.

Saturday, January 15, 2011

Different ways to adjust an Iron Condor

This is a follow up on the Iron Condor played on the SPX index and initiated here. As you know the market has been steadily going up in the last weeks, which have resulted in my upper break even point being threatened. That's fine...

Thursday, January 13, 2011

Iron Condor on SPX

A little late to blog about it since I opened this position on February the 11th, but still, the idea might be valid for others. After the losses in the previous plays on IBM and POT, I am moving back this month to an index, which as you know is less volatile than a single stock. The less violent the movements the better for neutral trades. I am going with the SPX this time...

Butterfly play on IBM, trade closed

Finally and after 26 days, I decided to close the Butterfly play on IBM that was open on December 17 (click here to read that article). And the reason for closing the position is that the market is in an obvious uptrend which is causing IBM to go up and up, and there was not more upside room for my butterfly position.

Wednesday, January 12, 2011

Iron Condor play on POT, trade closed

I have been super lazy blogging lately and in the mean time swallowing the loss on the Iron Condor played on POT. The battle started here and then after some upside movement, there was an adjustment made which is explained here.