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Matthew Whiz Buckley
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Matthew Buckley is the founder and CEO of Top Gun Options LLC and a Managing Partner at Wealth Creation Investing LLC. Matt was formerly the Managing Director of Strategy for PEAK6 Investments, L.P., one of the largest volatility arbitrage options trading firms in the country. He was the founder... More
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  • Advanced FFIV IC Trade Alert

    Strategic Mindset:Market Neutral with possibilities of Surges in Volatility.

    Target:FFIV trading @ $97.76

    Commit Criteria: FFIV Implied Volatility is overpriced relative to its forecast volatility of 8.57% over the trade period. We are looking for possible price movement but for it to stay within its $85.00 to $110.00 price range until the exit of this trade.

    Tactic: Opening 7 FFIV September 2012 Iron Condors (strikes [80/85/110/115]) for a $0.79 credit

    Tactical Employment of Iron Condor:

    - Buying to Open 7 FFIV Sep 2012 $115.00 Calls

    - Selling to Open 7 FFIV Sep 2012 $110.00 Calls

    - Selling to Open 7 FFIV Sep 2012 $85.00 Puts

    - Buying to Open 7 FFIV Sep 2012 $80.00 Puts

    - Net Credit: $79.00 per Iron Condor for a total of $553.00

    - Max Gain: $553.00

    - Max Risk: -$421.00 per Iron Condor for a total risk of -$2947.00

    Mid-Course Guidance:

    We will be watching for a price movement near the short strikes. As the short strikes are threatened we will adjust the Iron Condor as necessary.

    We don't want trade expectancy dropping below 2.00%. Based on this we have two price targets at which we need to consider an adjustment. FFIV trading below $90.48 and above $101.79 are triggers for adjustment.

    Profitability Target:

    We will wait for this Iron Condor to expire worthless taking the $553.00 credit as profit.

    Exit Tactic: We will wait for this Iron Condor to expire worthless, adjusting as necessary.

    Disclosure: I am short FFIV.

    Additional disclosure: We are looking to enter this position in our Advanced Model Portfolio at Top Gun Options

    Tags: FFIV
    Aug 30 4:01 PM | Link | Comment!
  • Advanced AAPL BPS Trade Alert

    Strategic Mindset:Flat to upward Bias

    Target:AAPL trading @ $665.32

    Commit Criteria: AAPL Implied Volatility is overpriced relative to its forecast volatility of 2.83% over the trade period. We are looking for flat to upward possible price movement but for it to stay above $645.00 until the exit of this trade.

    Tactic:Opening 5 AAPL September 2012 Bull Put Spreads (strikes [640/645]) for a $0.60 credit

    Tactical Employment of Bull Put Spread:

    - Selling to Open 5 AAPL Sep 2012 $645.00 Puts

    - Buying to Open 5 AAPL Sep 2012 $640.00 Puts

    - Net Credit: $60.00 per Bull Put Spread for a total of $300.00

    - Max Gain: $300.00

    - Max Risk: -$440.00 per Iron Condor for a total risk of -$2200.00

    Mid-Course Guidance:

    We will be watching for a price movement near the short strike. As the short strike is threatened we will adjust the Bull Put as necessary.

    Profitability Target:

    We will wait for this Bull Put to expire worthless taking the $300.00 credit as profit.

    Exit Tactic: We will wait for this Bull Put to expire worthless, adjusting as necessary.

    Disclosure: I am short AAPL.

    Additional disclosure: We are looking to enter this position in our Advanced Model Portfolio at Top Gun Options

    Tags: AAPL
    Aug 30 3:58 PM | Link | 4 Comments
  • Roberts Is An Idiot...Like A Fox

    Like most law abiding Americans I was absolutely stunned by the high court's decision on 'Obamacare' yesterday upholding the Individual Mandate.

    But something hit me last night as I was cleaning my musket and shining my pitchfork.

    Roberts did the right thing.

    No, I didn't hit my head this morning.

    Roberts is brilliant. He called the president out. And as this campaign season presses forward the Obama administration is going to realize that this decision was the worst thing that could've happened to them.

    Leading the 4 liberal justices' in the decision, the Chief Justice ruled that the Individual Mandate is constitutional.

    How?

    It's a tax.

    They did not rule Congress could do this based on the Commerce Clause, they ruled the law constitutional based on Congress' authority to tax under the Constitution. I have a whole different rant about that, but let me stay on point.

    First I want to refresh your memory:

    http://youtu.be/tQMkOScXctY

    http://youtu.be/ER96UJ2aazs

    Yup…those were their words.

    The president, Pelosi and Reid bent over backwards saying that the Individual Mandate was NOT A TAX.

    The highest court in our land disagreed. Roberts played this perfectly. He hit the ball back over the net. Your move Mr. President. Try to explain to the nation that it's not a tax…we're waiting…

    Don't hold your breath. But it's sure going to be fun to watch them try. Where I come from in south Jersey, it's called a lie.

    What does this have to do with the financial markets and trading?

    Everything.

    Small and large businesses will dump tens of millions of their employees onto the public dole and that dole just keeps getting larger. What could go wrong with the government running our nation's healthcare system?? Amtrak, The U.S. Post Office, Fannie, Freddie, Social Security, Medicare, Medicaid, Immigration, the TSA…my fingers are getting tired…

    This also means that one huge bomb in 'Taxmegeddon' or the 'Fiscal Cliff' is definitely going to explode on 1 January 2013. The largest tax increase in our nation's history. This, along with Bush tax cuts expiring (capital gains rate at 60%, personal income taxes go up 20%), trillions in automatic cuts that mainly hit the Department of Defense (DoD), and a host of other train wrecks which will dump us into an immediate recession. No I didn't say that, the independent Congressional Budget Office (CBO) said it for me.

    By the way, DoD cuts = an immediate increase in unemployment. Defense towns like Seattle and Fort Worth are going to get hammered. Just what they need.

    The VIX is down 10% today on this ridiculous relief rally that everything is great in the Euro Zone (SOLD!) so I am getting long volatility like you read about in 'I'm getting Way Long Vol' magazine.

    The talking heads are saying Merkel blinked. See how that goes over when she tries to sell that at home…

    So after yesterday's ruling and me climbing out of the ceiling this morning, I'm actually ok. I think it was a great outcome and will eventually lead to the end of this massive government encroachment on personal freedoms.

    Now back to making money on others stupidity.

    Tags: VXX, BBRY, NKE, AAPL, GOOG, GLD, Options
    Jun 29 2:24 PM | Link | 2 Comments
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