ASML – a trade management update.

I originally put on a diagonal trade with multiple strikes in ASML on 6/17/2010.  See that trade CLIICK HERE: Then, on 6/24/2010 I posted an update in which I bought calls as upside protection, CLICK HERE: I originally put on the trade with ASML trading around $30.30.  ASML quickly moved up to a high of… Continue Reading

Guest Post

I am honored that Mark Sebastian at Option911 blog asked me to do a guest post again. Please see his site for an article on using puts and put backspreads to protect a long stock portfolio. www.option911.com. Continue Reading

ASML update

On 6/17/2010 I put on two diagonal spreads in ASML.  (Click here to see the original post.) Unfortunately, I put on the post right at the bottom price for the day.  Subsequently, ASML moved up the next two days to a high of $31.41 and past our upside breakeven point.  I didn’t like this large… Continue Reading

ASML – ASML holding NV ADS – Trading Horizontal Skew

As you have probably already have seen in my trade postings (for educational purposes only, not trade recommendations) that I like to try to start every trade with a slight advantage based on Volatility.  I always like to try to sell higher Vol options and buy lower Vol options to hedge. Today, I ‘m trading… Continue Reading

V – update – trade management, a favorable roll

As you know from my previous post and update on the V trade (Click here to see), we’ve taken off 3 of the 10 contracts for a profit.  Since then, the underlying has moved up and away from our profit zone.  (Trade was entered with V at $74.20 on 5/21/2010 and moved as high as… Continue Reading

APC update – profitable diagonal spread

APC is down an additional $1.30 today.  I just took off an additional 5 contracts for a credit of $2.90.  Yesterday I took off 10 contracts for a credit of $2.80. This is a good example of how I exit this type of trade.  It’s very tempting to look at the profit at expiration and… Continue Reading

AUXL – how to take a max loss on an Iron Condor

On 29-Apr-2010 I posted a trade on AUXL CLICK HERE to see it. Here’s how this trade played out: The underlying moved sideways which was desirable however, the IV never went down.  In fact, it went up and I was holding the condor waiting for time decay or a IV decrease. I had a very… Continue Reading

APC: Wow, quick results…

…but sometimes profit comes too quick… With calendar and diagonal spreads when the underlying moves to the short strike too quickly you don’t maximize your profits.  In a perfect world these ‘time spreads’ would move to the short strike on expiration day! APC is down 6% as I’m writing at $41.97, and has blown past… Continue Reading

Skew trade in APC

Today I was scanning for  “exploding IV30’s’” in LiveVol Pro and came across APC, Anadarko Petroleum.  Headlines said that they were being investigated in their involvement in the BP oil spill causing IV to increase.  You can see the Skew chart below showing the Jun options inflated over the back months and a pretty steep… Continue Reading

V (Visa Inc.) Chart appears broken, it’s skew is inviting…

  At the bottom is an update to the trade…  Below is my ‘guest post’ that was previously posted on Mark Sebastians’s blog www.option911.com. I was reading Stock Twits and a tweet got my attention about Visa…  Then I looked at the chart in Thinkorswim: (click any picture to enlarge) Then I checked out the… Continue Reading