Trading custom positions - Do you?

lloydbee

Well-known member
275 17
I currently have a custom position (initial entry 11th August) on $GOOGL and have made one adjustment on the 3rd Sep. The risk graphs are just gold to me and reinforce the reason why I do such trades...
- Had it just been a single sided Vertical I would be looking at a max profit of +6.5% ROI.
- If it was a typical IC it would be returning a max profit of +13% ROI.
- My current custom position is already just breaking the +79% ROI although technically after my adjustment the true % ROI drops because the trade reserved extra in margin, adjusted ROI now at +38%.

The position is so ridiculous now, being just 2 weeks away from expiration that the chance of losing money would require GOOGL to move +6% to the upside and -13% to the downside before I see a loss which a loss wont happen if these levels were slowly reached due to profit already taken pre-adjustment and also some remaining position within this zone.

If you are an options trader, think outside the box and don't hesitate to experiment (in a Virtual account first) as the rewards can offer safety and consistency with the advantage of some nice profits.

My $GOOGL entry risk graph...
[URL=http://s1055.photobucket.com/user/Lloyd_Bradford/media/2014-8-27-GOOGL-entryrisk_zpsf275f1c1.jpg.html][IMG]http://i1055.photobucket.com/albums/s503/Lloyd_Bradford/2014-8-27-GOOGL-entryrisk_zpsf275f1c1.jpg[/URL][/IMG]

$GOOGL adjusted risk graph...
[URL=http://s1055.photobucket.com/user/Lloyd_Bradford/media/2014-9-5-GOOGL-adjustedrisk_zpscaf59b74.jpg.html][IMG]http://i1055.photobucket.com/albums/s503/Lloyd_Bradford/2014-9-5-GOOGL-adjustedrisk_zpscaf59b74.jpg[/URL][/IMG]

$GOOGL Daily Chart
[URL=http://s1055.photobucket.com/user/Lloyd_Bradford/media/2014-8-11-GOOGL_zps6ec05fd7.jpg.html][IMG]http://i1055.photobucket.com/albums/s503/Lloyd_Bradford/2014-8-11-GOOGL_zps6ec05fd7.jpg[/URL][/IMG]
 
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lloydbee

Well-known member
275 17
$GOOGL chart


$GOOGL entry risk graph (2 days into the trade)


$GOOGL adjusted risk graph
 
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CostaKapo

Active member
164 12
So did you sell to open 570 call buy to open 580 call buy to open 580 put sell to open 600 put buy to open 620 put sell to open 640 put and buy to open 660 put?
 

lloydbee

Well-known member
275 17
Sorry about the images before, I moved them in my bucket and forgot the links would die.
My original trade was this.
SELL VERTICAL GOOGL 640/645 CALL
SELL VERTICAL GOOGL 520/515 PUT
BUY BUTTERFLY GOOGL 580/600/620 CALL
BUY BUTTERFLY GOOGL 550/570/590 PUT
 
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