tag:blogger.com,1999:blog-5375291312433129989.post3987141393204518069..comments2023-06-03T05:06:58.216-04:00Comments on The Lazy Trader: Weekend Portfolio Analysis (June 7, 2014)Henrikhttp://www.blogger.com/profile/05792195649092816606noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5375291312433129989.post-66904440574737508692014-06-10T17:49:31.083-04:002014-06-10T17:49:31.083-04:00Hi LT
Well I purchased two more verticals yesterda...Hi LT<br />Well I purchased two more verticals yesterday call verticals 1970 | 1990, to move my short call positions to 1990 or 2000. The market just seems to want to go higher, and I am like you, I cannot afford to watch all day long, and I don't want to check at the end of the day to find out I got flattened.<br />I can still manage a profit for the month around $700 but if I have to adjust further I will likely just close out the position.<br />The SPX is up about 2% higher than I expected, so the nice thing about selling options is you can still do alright as long as you are patient and a little nimble and a whole lot of humble when you need to be.<br />Good luck<br />DaveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-83275756532262346602014-06-09T22:30:02.715-04:002014-06-09T22:30:02.715-04:00Thanks for your input Dave. Always good to see how...Thanks for your input Dave. Always good to see how others are faring at their craft<br />Cheers,<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-23981441749838764202014-06-08T22:24:49.413-04:002014-06-08T22:24:49.413-04:00Hi LT and Jonathan
Well, I had a very similar week...Hi LT and Jonathan<br />Well, I had a very similar week to you LT.<br />I do like calendars and diagonals in this environment but I am wary to build a major position based on time spreads because the vegas are very high, and the position is open to a big hit if the volatility gets crushed (as on Friday).<br />I have been trading with a very wide split strike iron butterfly on SPX the past six months as my standard position. But with the lower volatilities, in June I started buying a call and put at the same time as insurance. The models indicate the call/put strangle will cut my delta loss on a faster move and they also counter the negative vega of the butterfly position in an already low vega environment. At least that’s the plan. I didn’t execute this month (Jun) very well.<br />I purchased one JUL 1950 call and 1830 put two weeks ago for 22.00. The next day I sold my iron butterfly 4 x JUN 1780 | 1850 | 1970 | 2030 for 5.15. Two weeks ago was a very good week and I found myself up over $800 based on mark prices. Last Monday I had convinced myself that the SPX was at a top (mistake #1) and I wanted to close my position. I sold the insurance strangle first (mistake #2) because it was delta positive and I feared it would lose value if the market dropped. I sold for $22, a small loss. Then I had difficulty closing my iron butterfly positions at anywhere near mark value, so the end result is I still have my base position in place. I made a similar adjustment to LT on Friday purchasing 2 call verticals 1970 | 2000 to cut my deltas and make some space on the call side.<br />So for me, I am still positive for JUN, but I would rather be out and thinking about JUL, and now I am keeping a close eye for possible further adjustments on the upside. Could sure use a mild down day or two to ease things down a bit.<br />Good luck on your trades this week.<br />Dave <br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-10825092138749107092014-06-08T13:11:49.608-04:002014-06-08T13:11:49.608-04:00I wait until the price is around 10 points or less...I wait until the price is around 10 points or less from the short strike to adjust. I am willing to wait longer than you to adjust. This means my debit will be larger when I do make an adjustment.Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-18022458224033414062014-06-08T13:06:01.258-04:002014-06-08T13:06:01.258-04:00Thanks for sharing your positions.
Hey, as for tho...Thanks for sharing your positions.<br />Hey, as for those trades, do you have rules for adjustments? I think that's the part of your system I'm missing. I'm curious.<br /><br />Thanks,<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-46640467162695118912014-06-08T11:54:30.635-04:002014-06-08T11:54:30.635-04:00I was a bit early in selling the July SPX 2000/200...I was a bit early in selling the July SPX 2000/2005 on Friday June 6th. I should have waited until last Friday when we approached 1950. But I sold on June 6th because I had 2 put spread positions on IWM that I wanted to hedge in case the market goes down last week. But instead of going down, we went up up and away. So my July SPX 2000/2005 is showing a small loss at the moment. This position is not worrying me currently but will need to be roll into August if we are still above 1900 in 2 weeks.<br /><br />My current positions:<br /><br />July SPX 2000/2005 bear call spread<br />June IWM 96/94 bull put spread<br />July IWM 95/93 bull put spread<br />July IWM 123/125 bear call spread (I placed this trade last Friday when we approached 116. When IWM is up 8% or more in less than 21 days, history shows that it is a good time to sell far OTM bear call spread) Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.com