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BookingAlpha Option Trading Advisory

Wednesday, February 27, 2013

Forex Price Action vs Indicators. Which one is better?

It looks like every Forex website or forum I read lately there's always somebody, or more than one person praising "Price action trading" instead of using "indicators". It seems fashionable now, to say that trading pure "price action" methods will yield better results than using confusing indicators. And that the reason why you are losing money trading is obvious: you are using indicators! Stop using them!

Saturday, February 23, 2013

Weekend Portfolio Analysis (02-23-2013)

SPX started trading at 1519.79 on Tuesday and closed the week at 1515.60 for a small 0.28% loss. And ladies and gentlemen that was the first negative week of the year.

Friday, February 22, 2013

April 2013 $SPX Iron Condor

Today I entered the first April 2013 position. A 1375/1380/1580/1585 SPX Iron Condor as follows:

BUY 4 April 1375 Put (@5.90)
SELL 4 April 1380 Put (@6.30)
SELL 4 April 1580 Call (@3.10)
BUY 4 April 1585 Call (@2.65)

Tuesday, February 19, 2013

SPX March Put Credit Spread Roll Up to book profits

Today I rolled up the March SPX 1355/1360 Credit Put Spread to 1445/1450. Essentially closing the 1355/1360 trade for a profit and trying to get some new credit for the new 1445/1450 one as the market keeps headed higher.

Saturday, February 16, 2013

Weekend Portfolio Analysis (02-16-2013)

February 2013 is now in the books of history. It was a bad month for me, and these are the good ones to learn from. I can identify two main mistakes I made:

Mistake 1: Opening the RUT 890/895 Bear Call Spread on January 2. Not only was the market not overbought (against all my rules). But I also disregarded the fact that January is one of the most bullish months of the year. Historically speaking, chances of sell offs are much lower.

Mistake 2: Closing the SPX 1530/1535 on Tuesday. The reason why it was a mistake is because I chickened out. I had an alert set at 1528. A number that was never touched, in fact 1525 was never touched.

Tuesday, February 12, 2013

February $SPX Call Credit Spread closed

Today I closed the February SPX 1530/1535 Call Credit Spread for 0.65 debit. The initial position had been entered for 0.70 credit so this trade resulted in a small 0.05 profit, which represents $25 in five contracts that were played. Basically just covering commission costs.

Saturday, February 9, 2013

Weekend Portolio Analysis (02-09-2013)

SPX went from 1513.17 to 1517.93 this week for a small 0.32% gain. The market hasn't given the sell off that many have been waiting for so long and I truly believe we are not overbought anymore. As an options seller, my goal each weekend is not to predict exact short term market direction but to determine whether the market is very overbought, very oversold or in no man's land. That's it. Based on that I will trade or not and will give room for error in my strike prices, always out of the money.

Thursday, February 7, 2013

March 2013 $RUT Iron Condor

As per my tweet yesterday. Here's my RUT Iron Condor for the March expiration cycle

BUY 5 March 825 PUT
SELL 5 March 830 PUT 
SELL 5 March 955 CALL
BUY 5 March 960 CALL

Saturday, February 2, 2013

Weekend Portfolio Analysis (02-02-2013)

SPX went up a little bit more this week, from an opening 1502.96 on Monday to a close of 1513.17 on Friday for a 0.68% gain. The progression for the last 4 weeks has been +0.38%, +0.94%, +1.14% and +0.68%. The market keeps slowly creeping higher, defying the most skeptics out there.