TM – 73.90 (-4.30)

02/03/2010 – ThetaOptions Margin Portfolio - Toyota MAR PUT Initiated

Obviously Toyota stock has been sliding down hill without any signs of braking, could it be the decelerator is stuck on this stock.  We feel that the stock might bottom out around 65-70 over the next few weeks & then hopefully rebound by Mar OpEx, therefore the MP is entering into a MAR bullish position on them by selling some PUTs. Read the rest of this entry »

AMED – 58.20 (+ 1.15)

02/02/2010 – ThetaOptions IRA Portfolio - AMED FEB/JUN Diagonal Initiated

AMED is slowly gaining momentum and may rec’d a higher guidance later this month (after Feb OpEx date), we feel that now is time for the IRA portfolio to enter into a conservative diagonal spread on them.  The spread will cost us $500 in margin per contract, but we should have lots of different possibilities for future adjustments. Read the rest of this entry »

ADSK – 23.08 (+0.12)

02/05/2010 – ThetaOptions Margin Portfolio – ADSK Naked PUT Added

In order to reduce our cost basis to ZERO, the (MP) is selling another JULY PUT on ADSK.  This will increase our margin a bit, but we really want to keep our out-of-pocket cost down if we’re committed to buying them in JULY. Read the rest of this entry »

AAPL – 200.72 (-0.40)

01/29/2010 – ThetaOptions Margin Portfolio - Apple July10 Strangle Initiated

We would like to dedicate this trade to a friend of ours in-order to illustrate how a small amount of margin can make a big difference in annual returns. Our friend has 70K siting in a traditional savings account making about 2.2% year.  Therefore he expects to make $1540 this year. However, if he were to transfer $3500 from he’s savings acct to open a ThinkOrSwim acct & actually choose to participate in the following trade, then he would have the potential to double his interest for the current year…..here’s how. Read the rest of this entry »

DOW – 194 @ 10,530

01/20/2010 – ThetaOptions – Making Money in a down Market.

We would like to take this time to illustrate how our TWO portfolios are holding up during a 200 point down day on the DOW. The following two images are snap-shots of our current positions within the (MP) an IRA along with a BETA weight pegged to the DIA index (The DIA is an ETF that is 1/10 the price of DOW Jones Index). Please click on the multi-page links to follow this post.

Current DOW Price: DOW – 194 @ 10,530 - 1:30 est

IRA Portfolio: The IRA Portfolio is UP $85 with DIA beta weight of -5.62 & Theta value of 10.28

Margin Portfolio: The (MP) is up $25 today and has a DIA beta weight of -5.66

Currently the (MP) is using $11,000 of margin or 20% of our total Portfolio size.

Delta Neutral (DIA):

Overall both Portfolios are fairly delta neutral with regard to the DIA Beta Weight & our Theta decay is positive.

CAT – 51.42 (+0.02)

02/05/2010 – ThetaOptions IRA Portfolio - CAT Diagonal CLOSED - Profit $92

We decided to cash out the CAT diagonal this morning.  The IRA managed to make $92 from $500 risk within (15) days.  That’s 18% return on investment in a IRA account within (15) days.  We think that’s a pretty good return. Read the rest of this entry »

01/19/2010 – ThetaOptions Margin Portfolio – BIDU FEB Short Adjusted

Bidu had a nice little pull back this morning, as a result the (MP) has decided to buy back ONE of the FEB short callers. Read the rest of this entry »

X – 47.06 (-0.94)

02/03/2010 – ThetaOptions IRA Portfolio – US Steel FEB/APR Converted to Calendar

Wow, what a nice little play we had on US Steel a few weeks ago.  Although the stock actually dropped a little to far; it would be really nice if they had stalled out around $55.  While we could take our chances & wait another (2) weeks for that to happen, the IRA has decided to morph the spread into a safe little Calendar spread for about 0.25 debit. Please remember that we took $175 credit we we initiated this trade, so by giving up $25 our total profit is still $150 no matter what happens to the stock. Read the rest of this entry »