Opportunity To Get Long Volatility On Market Rally [View article]
Christopher -
I could not agree more.
Vol is historically cheap at these levels.
Time to become the house and start selling some hurricane insurance while the sun is shinning. If anyone thinks vol is going to stay down here with an election between a socialist and a capitlaist, a war in Syria/Iran/Israel, and a coming fiscal cliff, I've got a bridge to sell you that Ted Kennedy liked to use.
When vol is cheap you buy it. When vol is expensive you sell it.
I'm getting long vol like you read about in 'Getting Long on Vol' monthly.
Advanced VXX Iron Condor Trade Alert [View article]
Thanks for all your comments and questions, I will look to knock these out as soon as possible.
Suzerain -
I strongly disagree. There's a 'simple reason' you have posted this comment -
You obviously do not monitor your positions or have stops/limit orders on your trades. At Top Gun Options we close one spread in our iron condors if it looks like we're going to lose 50% of the credit we collected on that leg. And based on our trading SOP (standard operating procedures) we usually make this decision long before we get close to 50% loss. We can either roll the spread up/down and/or out, in addition to closing the profitable spread and/or rolling that up/down for additional credit.
Iron condor's are not 'set it and forget it' trades. If you're letting a 'spike' wipe out your profit for the entire year you're simply not managing it right in my opinion.
We employ the iron condor only in certain market conditions and only on certain symbols based on our experience. Our Primary Model Portfolio is up over 40% in the past 3 months - 3 months that have seen some large market swings and events.
Advanced Salesforce Iron Condor Trade Alert [View article]
There are a couple ways we manage iron condors at Top Gun Options.
1. We know our max risk before going into the trade so we know if we do nothing, how much we can potentially lose.
2. At Top Gun Options, one of our trading rules of engagement is that we will close the losing spread in an iron condor if we lose 50% of the premium collected.
3. Finally, we can roll up or down the profitable leg, while doing the same with the unprofitable leg. With an iron condor we want to split the uprights, but if we shank it towards one of the uprights, we can simply move the uprights...something I think kicker's at FSU wish they could do ;)
Time To Defriend Facebook (FB) [View instapost]
W
Advanced AAPL BPS Trade Alert [View instapost]
We have various risk management criteria at Top Gun Options and the contract size reflects that.
Adjusting contract size obviously will impact the risk vs reward ratio. This was also a weekly trade. 4 days.
Thanks!
W
Advanced AAPL BPS Trade Alert [View instapost]
We're selling a Bull Put Spread which technically makes us short since we sold the spread.
Hope this helps.
W
4 Charts Bears Do Not Want To See [View article]
Not one.
Whiz
Opportunity To Get Long Volatility On Market Rally [View article]
I could not agree more.
Vol is historically cheap at these levels.
Time to become the house and start selling some hurricane insurance while the sun is shinning. If anyone thinks vol is going to stay down here with an election between a socialist and a capitlaist, a war in Syria/Iran/Israel, and a coming fiscal cliff, I've got a bridge to sell you that Ted Kennedy liked to use.
When vol is cheap you buy it. When vol is expensive you sell it.
I'm getting long vol like you read about in 'Getting Long on Vol' monthly.
Whiz
Getting Hungry On Chipotle [View article]
The Top Gun Options Primary Model Portfolio (PMP) is up over 70% since I became the PM on 1 March.
In May, the worst month in 2 years in the market, the PMP was up 32%.
You can take a test flight here and see for yourself:
http://bit.ly/LOIz1t
Whiz
Getting Hungry On Chipotle [View article]
Care to expand a little on your sophomoric driveby?
W
Getting Hungry On Chipotle [View article]
It's a proprietary tool we use at Top Gun Options.
You can give it a test flight here: http://bit.ly/LOIz1t
Whiz
Advanced VXX Iron Condor Trade Alert [View article]
Suzerain -
I strongly disagree. There's a 'simple reason' you have posted this comment -
You obviously do not monitor your positions or have stops/limit orders on your trades. At Top Gun Options we close one spread in our iron condors if it looks like we're going to lose 50% of the credit we collected on that leg. And based on our trading SOP (standard operating procedures) we usually make this decision long before we get close to 50% loss. We can either roll the spread up/down and/or out, in addition to closing the profitable spread and/or rolling that up/down for additional credit.
Iron condor's are not 'set it and forget it' trades. If you're letting a 'spike' wipe out your profit for the entire year you're simply not managing it right in my opinion.
We employ the iron condor only in certain market conditions and only on certain symbols based on our experience. Our Primary Model Portfolio is up over 40% in the past 3 months - 3 months that have seen some large market swings and events.
Best of luck.
Cheers,
Whiz
Advanced Salesforce Iron Condor Trade Alert [View article]
1. We know our max risk before going into the trade so we know if we do nothing, how much we can potentially lose.
2. At Top Gun Options, one of our trading rules of engagement is that we will close the losing spread in an iron condor if we lose 50% of the premium collected.
3. Finally, we can roll up or down the profitable leg, while doing the same with the unprofitable leg. With an iron condor we want to split the uprights, but if we shank it towards one of the uprights, we can simply move the uprights...something I think kicker's at FSU wish they could do ;)
Cheers,
Whiz
Primary Trade Alert On Green Mountain Coffee Roasters [View article]
My column is meant to teach people about potential rewards and risks with options.
Cheers,
Whiz
Advanced Salesforce Iron Condor Trade Alert [View article]
W
Advanced Salesforce Iron Condor Trade Alert [View article]
W
Selling Options On MGM Resorts [View article]
Agreed - when you post an article the wizard only allows you to put long or short, it's built for stocks, not options. They're working on this.
You're right, at Top Gun Options we're long MGM and using cash secured puts and if assigned, covered calls, to generate consistent income.
Cheers,
Whiz
Advanced Trade Alert Bull Put Spread On VXX [View article]
This spread could be bought back right now for .14, a profit of .17.
That's a fairly nice return in a week.
W