65.23 (+0.90)

05/26/2010 – ThetaOptions IRA Portfolio – IWM Bullish DEC Hedge

The IRA is opening a bullish year end hedge on the Russell Small Cap IWM ETF. We’re placing a DEC Bull Call spread & selling a wide Bull PUT spread to help fund this position. We’re committed to buying the IWM at $50 per shares, that’s about 22% discount from today’s current price of $65. Our actual price would be about $52 per share. Read the rest of this entry »

<<JAN Short Strangle

Next Trade>>

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 »

67.92 (-0.26)

03/30/2010 – ThetaOptions IRA Portfolio - IWM MAR QTR Closing orders

With one day left to go before the MAR Qtr options expire, the IRA portfolio has decided to close out the BEAR Call spread now & to roll (2) of our original MAR/APR 67/69 diagonals into a FREE 69/70 bull call spread for APR.  We cashed out our other diagonal for about 0.35 profit, but we used that to buy back the short put leverage against our LEAP. So all our effort to desperately  free our MAR 62 short caller has paid off on 3/5. Basically we’ve removed the short call & gained 400 points in delta after today.  The best part now, is that we have (2) APR bull call spread & we’ll probably initiated (1) PUT back/ratio in-order to capture $1 or so profit over the next 3 weeks.  In addition, our LEAP put is ATM (at-the-money) now, so we can close the entire trade now or roll the LEAP PUT up (5) strikes for 1/2 the cost, thereby widening our original 45/70 strangle spread of $31 debit. This would give us a $30 spread for $33.50 debit; that means we only need to collect $3.5, which we’re pretty close too already.  Read the rest of this entry »

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 »