ThetaOptions

224.38 (+1.24)

03/09/2010 – ThetaOptions Margin Portfolio - Apple July10 Strangle Adjusted

The (MP) has decided to adjust this spread into a bullish back/ratio.  Later on we’ll change it into a spread butterfly with the sweet spot between 250-260.  Hopefully APPLE finishes near 260 by JULY.

Filled Order:

BOT +1 VERTICAL AAPL 100 JUL 10 230/250 CALL @7.00 debit

Position: Delta neutral w positive Theta

Trade Note: We collected $618 to init the trade, now we’re spending $7 for the bullish adjustment.

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 »

438.48 (-4.75)

02/09/2010 – ThetaOptions Margin Portfolio – BIDU CLOSED – Profit $465

We finally were able to buy back the FEB short caller.  And just in a nick of time before earnings tonight.  There’s really no sense chances $35 on $4000 in margin. Read the rest of this entry »

59.60 (-0.33)

03/19/2010 – ThetaOptions IRA Portfolio – US Steel FEB/APR Calendar Closed – Profit $200

The IRA closed down the last portion of our original FEB/APR Diagonal today for $50 credit.  It turns out hat our move to lower the APR $60 strike to to $50 using a Calendar spread completely back fired on us as we painfully watch US Steel climb all the way back to $60 on APR OpEX.  We would have made another $300 had we NOT converted our original spread into a 50/50 Strike Calendar Spread .  However, we still manage to make a nice 40% profit on this trade. I still can’t believe the stock went from $65 to $43 back to $60 after their disappointing earnings call….we might need to place another bearish spread on them! Read the rest of this entry »