trading weekly options for a living...

WklyOptions

Well-known member
269 24
FAS $106.41 - Time to adjust campaign...

Hi, T2W traders,


Current Positions:

Short (-4) FAS Sep1(5th) $106 Weekly Call @ (+$2.21)
($2.11-$2.40)

Long (+4) FAS Oct(18th) $94 Call @ (-$6.83)
($12.65-$14.95) (y)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$9.76)

Current Cost Basis: (-$12.20) :whistling

...

Plan:

(6) Look to roll up the Long (+4) FAS Oct(20th) $94 Call if - FAS starts to indicate bearish weakness in the lower time-frames. :smart:

Hi, T2W traders,

FAS now hovering at $106.40 - $106.45. S&P 500 had just closed > 2000 yesterday and markets at taking a breather (lower volume today).

However - the lower time-frames indicate some bearish momentum building. Hence time to adjust this FAS campaign:

Sold to Close (-4) FAS Oct(18th) $94 Call

Bought to Open (+4) FAS Oct(18th) $105 Call

@ Net Credit (+$8.10) (y)

Current positions:

Short (-4) FAS Aug5(29th) $106 Weekly Call @ (+$2.21)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$12.20) :whistling

Current Cost Basis: (-$4.10) :clap:

Chart & Position Analysis:

FAS longer-term continues to indicate bullish trend & momentum bias.

Plan:
(1) HOLD positions.
(2) Look to adjust out of the Short (-4) FAS Aug5(29th) $106 Weekly Call leg tomorrow.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS campaign - mistyped error last post on Current Position (Short Leg)...

...

Current positions:

Short (-4) FAS Aug5(29th) $106 Weekly Call @ (+$2.21)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$12.20) :whistling

Current Cost Basis: (-$4.10) :clap:

...

Hi, T2W traders,

The immediate last post had an incorrectly typed Short Leg for the Current Positions portion. The CORRECTED Current Position is shown here:

...

Current positions:

Short (-4) FAS Sep1(5th) $106 Weekly Call @ (+$2.21) [mis-typed as Aug5(29th)]

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$12.20) :whistling

Current Cost Basis: (-$4.10) :clap:

...

All else is accurate.

Have a great weekend!

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS $108.25 - time to roll out and up...

Current positions:

Short (-4) FAS Sep1(5th) $106 Weekly Call @ (+$2.21) [mis-typed as Aug5(29th)]

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$12.20) :whistling

Current Cost Basis: (-$4.10) :clap:

...

All else is accurate.

Have a great weekend!

Regards,

WklyOptions

Hi, T2W traders,

FAS continues to move up slowly but consistently = now at $108.25 zone. Time to roll out and up on the short weekly call leg:

Bought to Close (+4) FAS Sep1(5th) $106 Weekly Call @ (-$2.97)

Sold to Close (-4) FAS Sep2(12th) $108.50 Weekly Call @ (+$1.70)

@ Net Debit (-$1.27)

Current Positions:

Short (-4) FAS Sep2(12th) $108.50 Weekly Call @ (+$1.70)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$4.10)

Current Cost Basis: (-$5.37)

Chart & Position Analysis:

FAS continues to indicate longer-term bullish trend and momentum bias. Currently the net FAS spread position is slightly bullish with delta (+14) per spread.

Plan:
(1) HOLD positions.
(2) Extract the extrinsic time value of the short (-4) FAS Sep2(12th) $108.50 Weekly Call option.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS at $105.38 - tested support at $105 - time to adjust...

Current Positions:

Short (-4) FAS Sep2(12th) $108.50 Weekly Call @ (+$1.70)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$4.10)

Current Cost Basis: (-$5.37)

Hi, T2W traders,

FAS tested short-term support at $105 this morning. It looks like possible trading range between $105 and $108 - IF it can hold at $105.

Time to adjust the spread:

FAS $105.38

Bought to Close (+4) FAS Sep2(12th) $108.50 Weekly Call @ (-$0.34)

Sold to Open (-4) FAS Sep(20th) $105 Call @ (+$2.50)

@ Net Credit (+$2.16)

Current Positions:

Short (-4) FAS Sep(20th) $105 Call @ (+$2.50)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$5.37)

Current Cost Basis: (-$3.21)

Chart & Position Analysis:

FAS and the general market is showing a topping/consolidation pattern in the short-term time frames.

The current FAS calendar call spread position is a market-neutral bias.

Plan:
(1) HOLD positions.
(2) Look to buy back the short FAS Sep(20th) $105 Call if Ask < ($0.20).
(3) Look to adjust if FAS > $107.25.

Regards,

WklyOptions
 

CostaKapo

Active member
164 12
I enjoy your posts keep it up
 

WklyOptions

Well-known member
269 24
FAS campaign - Adjusted position with a Roll Up & Out...

Current Positions:

Short (-4) FAS Sep(20th) $105 Call @ (+$2.50)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$5.37)

Current Cost Basis: (-$3.21)

Chart & Position Analysis:
...

Plan:

(3) Look to adjust if FAS > $107.25.

Hi, T2W traders,

FAS started its bullish move once again after a pause in the $105 - $107 zone. Towards the market close - the FAS campaign was adjusted by rolling out and up the short weekly call leg as shown:

Bought to Close (+4) FAS Sep(20th) $105 Call @ (-$2.89)

Sold to Open (-4) FAS Sep4(26th) $107 Call @ (+$2.69)

@ Net Debit (-$0.20) per spread

Current Positions:

Short (-4) FAS Sep4(26th) $107 Call @ (+$2.69)
($2.51-$3.05)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)
($4.15-$5.05)

Initial Cost Basis: (-$4.62) per spread - initiated 8/8/2014

Previous Cost Basis: (-$3.21) per spread

Current Cost Basis: (-$3.41) per spread

Position & Chart Analysis:

FAS resumed its upside move again today - hitting the $107+ zone. This level was one of the Planned Adjustments described in earlier entries. It is always best to follow the Plan. :smart:

The FAS adjustment was to roll out and up the short weekly call leg. At this time the previous calendar spread is now rolled into a bullish diagonal call spread in alignment with the immediate recent FAS price action. (y)

Plan:
(1) HOLD positions.
(2) Extract extrinsic time value of the Short (-4) FAS Sep4(26th) $107 Call option.
(3) Look to Adjust if FAS > $109 zone.
(4) Look to Buy to Close IF - FAS Sep4(26th) $107 Call Ask < ($0.30).

Nothing to do now - just let it continue to unfold however it will move! :sleep: (y)

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS @ $110.80+ = time to adjust again...

Current Positions:

Short (-4) FAS Sep4(26th) $107 Call @ (+$2.69)
($2.51-$3.05)

Long (+4) FAS Oct(18th) $105 Call @ (-$5.77)
($4.15-$5.05)

Initial Cost Basis: (-$4.62) per spread - initiated 8/8/2014

Previous Cost Basis: (-$3.21) per spread

Current Cost Basis: (-$3.41) per spread


Plan:

(3) Look to Adjust if FAS > $109 zone.

Hi, T2W traders,

The FAS price action remained strongly bullish today - and it headed straight over the $109 zone - actually well into the $110+ levels. At this point - the net position delta was no longer positive - meaning my position would be going against the ongoing trend. (n)

So - it was time to adjust and roll positions again!

Adjustments: (y)

Bought to Close (+4) FAS Sep4(26th) $107 Call @ (-$4.79)

Sold to Open (-4) FAS Sep4(26th) $111 Call @ (+$1.99)

Bought to Open (+4) FAS Sep4(26th) $113 Call @ (-$1.02)

Sold to Close (-4) FAS Oct(18th) $105 Call @ (+$7.82)

Bought to Open (+4) FAS Oct(18th) $115 Call @ (-$2.15)

@ Net Credit (+$1.85)

Current Positions: :whistling

Short (-4) FAS Sep4(26th) $111 Call @ (+$1.99)
($1.95-$2.08)

Long (+4) FAS Sep4(26th) $113 Call @ (-$1.02)
($1.06-$1.16)

Long (+4) FAS Oct(18th) $115 Call @ (-$2.15)
($2.02-$2.21)

Initial Cost Basis: (-$4.62) per spread - initiated 8/8/2014

Previous Cost Basis: (-$3.41) per spread

Current Cost Basis: (-$1.56) per spread :cool:

Chart & Position Analysis:

The FAS price action remained strongly bullish in trend and momentum bias. Since FAS kept going through the short call strike levels - it required multiple adjustments to prevent the diagonal call spread from becoming net negative delta - which would be a losing proposition in a rising trend! :confused::confused:

This current adjustment had the following unique additions:

(1) The Oct long call was deep in-the-money. It was rolled up to become out-of-the-money to generate some realized profits to help offset the necessary adjustments.

(2) The short Sep4(26th) $111 Call is effectively at-the-money which was intentionally done to lock up and exploit the maximum extrinsic time value on a weekly option.

(3) A long Sep4(26th) $113 Call was added - to protect the entire spread position from being adversely impacted by a rising trend in FAS.

Now the combined 3-legged spread has a net delta of (+19) per spread. So - if FAS continues to head up - the position will actually increase in value.

If FAS declines - then short front week at-the-money calls will be maintained to further reduce cost basis.

As T2W traders can see - the Current Cost Basis is now only at (-$1.56). So it will be pretty "easy" for this position to become break-even or profitable in the next couple of weeks (as long as FAS continues to have some volatility especially).

Ok- any questions on the above adjustments and the new 3-leg spread here? :idea: :confused:

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS $104.90 - time to adjust short weekly call legs

Current Positions: :whistling

Short (-4) FAS Sep4(26th) $111 Call @ (+$1.99)
($1.95-$2.08)

Long (+4) FAS Sep4(26th) $113 Call @ (-$1.02)
($1.06-$1.16)

Long (+4) FAS Oct(18th) $115 Call @ (-$2.15)
($2.02-$2.21)

Initial Cost Basis: (-$4.62) per spread - initiated 8/8/2014

Previous Cost Basis: (-$3.41) per spread

Current Cost Basis: (-$1.56) per spread :cool:

T2W traders,

Today FAS move down hard again ending at $104.90.

Adjustment made today:

Sold to Open (-4) FAS Sep4(26th) $105 Call @ (+$1.44)

Bought to Open (+4) FAS Sep4(26th) $107 Call @ (-$0.61)

Bought to Close (+4) FAS Sep4(26th) $111 Call @ (-$0.09) :sneaky:

@ Net Credit (+$0.74) (y)

Current Positions:

Short (-4) FAS Sep4(26th) $105 Call @ (+$1.44)
($1.40-$1.53)

Long (+4) FAS Sep4(26th) $107 Call @ (-$0.61)
($0.58-$0.64)

Long (+4) FAS Sep4(26th) $113 Call @ (-$1.02)
($0.00-$0.19)

Long (+4) FAS Oct(18th) $115 Call @ (-$2.15)
($0.43-$0.49)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$1.56)

Current Cost Basis: (-$0.82) (y)

Chart & Position Analysis:

FAS has been in a strong downside move for the past three (3) trading days. The shorter-term time frames continue to indicate bearish trend and momentum bias.

Key Support is at $103.60 to $105. A close < $105 for 3 or more days will imply greater price erosion for FAS. Below the $103.60 zone - the next Key Support is in the $98 - $100 zone. :whistling

Plan:
(1) HOLD positions.
(2) Extract extrinsic time value of the Short (-4) FAS Sep4(26th) $105 Call leg.
(3) Look to adjust if FAS < $103 or if FAS > $106.50.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
FAS = $101.96 - time to Adjust and roll again!

Current Positions:

Short (-4) FAS Sep4(26th) $105 Call @ (+$1.44)
($1.40-$1.53)

Long (+4) FAS Sep4(26th) $107 Call @ (-$0.61)
($0.58-$0.64)

Long (+4) FAS Sep4(26th) $113 Call @ (-$1.02)
($0.00-$0.19)

Long (+4) FAS Oct(18th) $115 Call @ (-$2.15)
($0.43-$0.49)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$1.56)

Current Cost Basis: (-$0.82) (y)

Hi, T2W,

FAS continued lower today - taking out the Key Support at $103. Next stop? Probably in the $98 - $100 zone. Time to Adjust again b/c the front week short call leg has time value only 10% of the initial credit.

Adjustment:

Bought to Close (+4) FAS Sep4(26th) $105 Call @ (-$0.17)

Sold to Open (-4) FAS Oct1(3rd) $102.5 Call @ (+$2.05)

Bought to Open (+4) FAS Oct1(3rd) $104.5 Call @ (-$1.17)

@ Net Credit (+$0.71)

Current Positions:

Long (+4) FAS Sep4(26th) $107 Call @ (-$0.61)

Long (+4) FAS Sep4(26th) $113 Call @ (-$1.13)

Short (-4) FAS Oct1(3rd) $102.5 Call @ (+$2.05)
($1.92-$2.30)

Long (+4) FAS Oct1(3rd) $104.5 Call @ (-$1.17)
($1.07-$1.22)

Long (+4) FAS Oct(18th) $115 Call @ (-$2.15)
($0.19-$0.43)

Initial Cost Basis: (-$4.62)

Previous Cost Basis: (-$0.82)

Current Cost Basis: (-$0.11) :clap:

Chart & Position Analysis:

The FAS time frames have remained decidedly bearish in trend and momentum bias. The next Key Support is in the $98 - $100 zone.

The current FAS campaign is near Break-Even at this time.

Plan:
(1) HOLD positions.
(2) Extract extrinsic time value of the Short (-4) FAS Oct1(3rd) $102.5 Call leg.
(3) Look to roll down the Long call legs - IF and WHEN - FAS begins to indicate consolidation in the lower time frames - at the Key Support price zone.

Regards,

WklyOptions
 

CostaKapo

Active member
164 12
Good posts, I employ a similar strategy only with the bull put spread. I will continue to read.
 

WklyOptions

Well-known member
269 24
Good posts, I employ a similar strategy only with the bull put spread. I will continue to read.

Hi, CostaKapo,

Thx! I hope that the regularity and structured approach and adjustments will help some of the T2W traders that are trying to trade "intuitively".

Unfortunately - too many retail traders think and believe that they are using "discretionary/intuitive" trading. However, in fact, all they are really doing is trading in an "unorganized, unfocused" manner. And - many do not have any idea (even worse, a commitment and belief) of the trading EDGE(s) they are trying to trade. Too much "faith" in their guessing and hoping trading process! (n) :whistling

In any case - I enjoy sharing my trading style and adjustments. So - will continue to do as such.

As you are also an options trader - for us, there is really no FEAR of any black swan events or being on the "wrong" side of the price trend. As long as we have locked up maximum risk of loss, and we can adjust around the core position and trend - we KNOW with certainty that it is a matter of time before the options positions will be in a risk-free zero cost basis profile. :clap:

I appreciate your input - and also enjoy reading your posts elsewhere! Especially on the options trading and hedge fund posts. (y)

Best regards,

WklyOptions
 

CostaKapo

Active member
164 12
Hi, CostaKapo,

Thx! I hope that the regularity and structured approach and adjustments will help some of the T2W traders that are trying to trade "intuitively".

Unfortunately - too many retail traders think and believe that they are using "discretionary/intuitive" trading. However, in fact, all they are really doing is trading in an "unorganized, unfocused" manner. And - many do not have any idea (even worse, a commitment and belief) of the trading EDGE(s) they are trying to trade. Too much "faith" in their guessing and hoping trading process! (n) :whistling

In any case - I enjoy sharing my trading style and adjustments. So - will continue to do as such.

As you are also an options trader - for us, there is really no FEAR of any black swan events or being on the "wrong" side of the price trend. As long as we have locked up maximum risk of loss, and we can adjust around the core position and trend - we KNOW with certainty that it is a matter of time before the options positions will be in a risk-free zero cost basis profile. :clap:

I appreciate your input - and also enjoy reading your posts elsewhere! Especially on the options trading and hedge fund posts. (y)

Best regards,

WklyOptions

I agree. Using spreads and locking in the risk/reward at the time of the trade is a good structured way to go. What I see all too often for retail traders is they DO need to fear the black swan event because they are constantly risking 50%-95% of their available capital for every trade!

I currently will only have at max 20% of my available capital in play at any given time, so that given a "Black Swan" (2sd OTM) I wont be crushed. I adjust delta .30 in my positions, and if I collect 85% of the original premium I exit the play and put my capital back to use in the next play.
 

CostaKapo

Active member
164 12
Do you utilize the website profit.ly to verify trades. It is a cool little social network website for traders.
 

WklyOptions

Well-known member
269 24
Do you utilize the website profit.ly to verify trades. It is a cool little social network website for traders.

Hi, CostaKapo,

No - I do not use Profit.Ly - I've looked at that years ago.

It is a good social network website for traders as you said - but mostly it is for stock traders and highly speculative trading esp along the short-side of the trend.

Also - Profit.Ly is not a trade verification website nor is it licensed to conduct such processes. Like you indicated - it is mostly a social site for "playing" and "talking" about trading.

It is the job of every professional trader (and hopefully T2W traders as well) to go out and "verify" his/her own trading EDGE(s). And then further verify Closed Trades in blocks of 20-30 trades. Calculate, study, think! Did the EDGE(s) hold up? Or were there any/many trader "errors" and "variance/deviation" from the Trading Plan?

Profitable trading requires ongoing focus, thinking, and reviews/analysis, in the process itself. Unfortunately too many retail traders are more focused on the "status quo" and just staying in their comfort zone. Little do they know that it is all too common in retail trading that they can get very comfortable while getting very poor trading performance (and all other aspects of life in general if adopting the same "comfort" philosophy in life).

But - that line of discussion will be raised again in a different Home Trader thread soon.

Regards,

WklyOptions
 

CostaKapo

Active member
164 12
Hi, CostaKapo,

No - I do not use Profit.Ly - I've looked at that years ago.

It is a good social network website for traders as you said - but mostly it is for stock traders and highly speculative trading esp along the short-side of the trend.

Also - Profit.Ly is not a trade verification website nor is it licensed to conduct such processes. Like you indicated - it is mostly a social site for "playing" and "talking" about trading.

It is the job of every professional trader (and hopefully T2W traders as well) to go out and "verify" his/her own trading EDGE(s). And then further verify Closed Trades in blocks of 20-30 trades. Calculate, study, think! Did the EDGE(s) hold up? Or were there any/many trader "errors" and "variance/deviation" from the Trading Plan?

Profitable trading requires ongoing focus, thinking, and reviews/analysis, in the process itself. Unfortunately too many retail traders are more focused on the "status quo" and just staying in their comfort zone. Little do they know that it is all too common in retail trading that they can get very comfortable while getting very poor trading performance (and all other aspects of life in general if adopting the same "comfort" philosophy in life).

But - that line of discussion will be raised again in a different Home Trader thread soon.

Regards,

WklyOptions

Do you have a website or just forums?
 
 
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