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I don't anticipate that there will be any rolling in this trade because there is not a lot of time between the short and long options, though they could be rolled to weeklies if someone wanted to do that.
As for exit points, it depends on risk tolerance, prediction of market direction, etc... If market were to go up the calls would go up and could be sold for a profit. At that point the puts would go down - if you believed that the market were going back down you might hold on to the puts and try to sell them for a higher price later. Or if not you might just sell both calendars at the same time. You can get an idea from the white line profile that I clicked through as the days go buy what the profit/loss would look like to help determine an exit point.
Decided to make an adjustment just now. Added 10 of the 131 put calendars for 52 cents. It lifts us the sagging midportion of the expiration graph and may help as the price is moving away from the 128 puts a bit.
Trade Update: Sold the 131 Put calendar for $0.46. Didn't like the wide spread quote in that option and decided to not take the risk of that losing more if market tanks further. That is a 6 cent loss on a 10 contract position. Remaining positions are the 125 and 128 put calendars, 135 call calendar.
Is there a potential exit/adjustment point in this trade? You didn't use the embed HTML video for this post.
ReplyDeleteI don't anticipate that there will be any rolling in this trade because there is not a lot of time between the short and long options, though they could be rolled to weeklies if someone wanted to do that.
ReplyDeleteAs for exit points, it depends on risk tolerance, prediction of market direction, etc... If market were to go up the calls would go up and could be sold for a profit. At that point the puts would go down - if you believed that the market were going back down you might hold on to the puts and try to sell them for a higher price later. Or if not you might just sell both calendars at the same time. You can get an idea from the white line profile that I clicked through as the days go buy what the profit/loss would look like to help determine an exit point.
Decided to make an adjustment just now. Added 10 of the 131 put calendars for 52 cents. It lifts us the sagging midportion of the expiration graph and may help as the price is moving away from the 128 puts a bit.
ReplyDeleteTrade Adjustment:
ReplyDeletehttp://screencast.com/t/KVjxYSuU6p
Still watching ES for the weekly downside price target of 1232.25
ReplyDeleteHope all is well!
Keith
thedailyeminitrader.com
Trade Update:
ReplyDeletehttp://screencast.com/t/XtWEEvHl
Trade Update:
ReplyDeleteSold the 131 Put calendar for $0.46. Didn't like the wide spread quote in that option and decided to not take the risk of that losing more if market tanks further. That is a 6 cent loss on a 10 contract position. Remaining positions are the 125 and 128 put calendars, 135 call calendar.