December 4th, 2009. Posted by ThetaTrader
12/04/2009 – ThetaOptions IRA Portfolio – IWM Diagonal
As a quick two week short play, were entering (1) DEC/JAN diagonal. The goal is for the IWM to finish below 61 by OpEx & then we’ll be left with (1) free JAN 63 Caller to use against our JAN Short strangle. Therefore, we’re matching (1) contract per JAN Short Strangle; but of course we only have ONE! Read the rest of this entry »
November 30th, 2009. Posted by ThetaTrader
66.29 (+1.00)
03/05/2010 – ThetaOptions IRA Portfolio - IWM MAR Short Call Adjustment
The IRA is adjusting our IWM MAR short call by opening several verticals & a few APR/MAR diagonals. It turns out that we sold the MAR caller way too soon while the IWM bottoming out around 58; since then the small index has risen about 15% in 4-5 weeks. Hopefully the index meets strong resistance here & sells-off slightly into MAR OpEx. Read the rest of this entry »
November 30th, 2009. Posted by ThetaTrader
11/30/2009 – ThetaOptions IRA Portfolio – IWM Long Strangle
Today we’re going to open a LONG term “Strangle” on the IWM using our IRA Portfolio. This trade involves the opening of a “Deep In The Money” option CALLPUT LEAPs, along with the sell of monthly options near-the-money. We’ll track this trade separately against the front month positions, buy scoring this trade as a loss of the spread – premium we paid or $6 loss. Therefore we have 12 months to collect $6 to breakeven; and we need to roll our front month options safetly to the next month. Basically we’re performing a monthly ‘Double Diagonal’ against a long term In-The-Money LEAPs. Read the rest of this entry »