tag:blogger.com,1999:blog-973587304515257848.post5382851567860446740..comments2024-02-11T00:12:56.047-08:00Comments on IN THE MONEY TRADES: I have been busy this morning...Anonymoushttp://www.blogger.com/profile/02083421527404780093noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-973587304515257848.post-54525150162882078932010-01-25T09:17:10.354-08:002010-01-25T09:17:10.354-08:00So here is how I look at it, you made a small prof...So here is how I look at it, you made a small profit and learned something, what can be better than that? On your other point of having too much bias, I didn't feel that way. Hopefully my feeling doesn't influence you at all. I wasn't looking to change your mind. We both go with our gut and right now mine is telling me I think that was the top. If I'm wrong I can always chase it up with ATM options later. Just as I've heard you say before, I'm not afraid of missing a move. I'm not going to catch every one. I'll just kind of be in the wait and see mode here for a bit.Jason Haashttps://www.blogger.com/profile/08138027111150684908noreply@blogger.comtag:blogger.com,1999:blog-973587304515257848.post-57733583538343657942010-01-25T08:38:24.414-08:002010-01-25T08:38:24.414-08:00So the more I got to thinking about our email conv...So the more I got to thinking about our email conversation last night. I was able to realize that I have to much bias in my trading right now and I jumped back long the market way to fast. I think that you are correct that we have put in a top for now. And the market needs some time to digest the recent rally and the rest of the news that has recently hit the market. <br /><br />This morning I closed the call spread piece of the ISRG iron condor. The trade was basically a push, I did not get the pull back I was looking for. I do not want to fight this strong stock. <br /><br />I also closed out my FSLR trade as I fill that I jumped into this thing. So I used today's bounce to get out for a small profit of about $40. <br /><br />I also decided to take off my Dell puts as I went back to the analyzer and realized that even if this thing goes to my target of $16 they would only make me about $100. Just decided it really wasn't worth the tie up in capital.<br /><br />On top of all this, I decided to hedge up the rest of my position in case this downmove is not over. I am willing to spend a little money for some protection. I just don't want my trading to be too influenced by my bias. The market does not care what I think. I really think that you have take a step back sometimes and make sure you are playing in the same direction that the market is.<br /><br />So with that said. I bought a $65 put to turn the BRK.B naked into a vertical put spread. I bought a $60 put to turn my XOM position into a vertical put spread as well. So the only position that I have that is not hedged is the DRYS position. <br /><br />So I spent about $150 for some insurance on my positions and my plan is if there is further downside to possibly take these off for a profit or if not they will expire worthless in the next month or two. Some cheap piece of mind.Anonymoushttps://www.blogger.com/profile/02083421527404780093noreply@blogger.comtag:blogger.com,1999:blog-973587304515257848.post-6272153574530088212010-01-25T07:05:25.004-08:002010-01-25T07:05:25.004-08:00So I closed my VIX options out today for a small g...So I closed my VIX options out today for a small gain of only $50. One thing that I did not factor into the the model is the change in volatility which made my profit targets from the price slices that I chose very inflated.There was a drop of about 12% in volatility from Friday. Plugging this back into the model with the VIX at 25.33 I would had been up close to $400.<br /><br />Jason you actually pointed this out on Friday when I put the position on. But this was a good learning lesson. Not sure I understand exactly how these options move as the 27.5 put only gained .30 on a 2.12 point down move. I would had expected this thing to be up at least 2 points. So it is obvious that these options have different characteristics then that of equity options.<br /><br />I will def do more research before I try to play with VIX options again.Anonymoushttps://www.blogger.com/profile/02083421527404780093noreply@blogger.comtag:blogger.com,1999:blog-973587304515257848.post-8406328951302967022010-01-22T14:31:14.413-08:002010-01-22T14:31:14.413-08:00I did the opposite today, which was nothing. I onl...I did the opposite today, which was nothing. I only have a few positions and I'm willing to die by them so I didn't even tune in today. I agree with the IWO thesis on VIX, the rate of change isn't sustainable. I also like your concept of just adding more puts if VIX does keep rising. If people aren't even willing to get through earnings season then the top is in.Jason Haashttps://www.blogger.com/profile/08138027111150684908noreply@blogger.com