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  • How To Profit From Sideways Markets - An Options Strategy (Part 1) [View article]
    The trade has deltas of ~25 when I was writing the article. For that kind of delta, I'm adjusting when RUT is touching the sort strikes. Since you got relatively big credit, you can afford to give up some of the gains.
    Jan 13, 2012. 01:22 PM | Likes Like |Link to Comment
  • An Ingenious Way To Profit From JPMorgan's Earnings Prior To Their Release [View article]
    My recommended strategy is not to hold through earnings. JPM case like many other cases confirm it - most of the time, the post-earnings move is not enough to compensate for IV collapse.
    Jan 13, 2012. 11:42 AM | Likes Like |Link to Comment
  • Trading Weekly Options With The SPDR Gold Trust And Others [View article]
    CRM 95/100/105/110 is worth 2.15 now - that's 135% profit potential for 7-8% move by expiration, breakevens are about 3% and would probably produce 30-40% after 2-3% move. Sounds like an excellent risk/reward to me.
    Jan 13, 2012. 11:35 AM | Likes Like |Link to Comment
  • Trading Weekly Options With The SPDR Gold Trust And Others [View article]
    Kevin, you said "Salesforce.com (CRM) - not cheap to trade, but a very volatile stock. High ROI."

    Not cheap to trade - you mean because of $5 spreads instead of $1, right? But it would be also much less commissions consuming. If you allocate for example $1,000 per trade, wouldn't it better to buy 2 contracts of CRM instead of 5 contracts of GLD, assuming similar ROI?
    Jan 13, 2012. 10:59 AM | Likes Like |Link to Comment
  • How To Strangle Citi, Wells Fargo Ahead Of Earnings [View article]
    It's not covered in stone. I like to have a mix of straddles, strangles and RICs.
    Jan 13, 2012. 10:37 AM | Likes Like |Link to Comment
  • How To Profit From Sideways Markets - An Options Strategy (Part 1) [View article]
    Did you take the original trade I suggested? How much credit did you get and what is it worth today?

    P.S. I waited till now, just entered 700/710/810/820 for 3.70 credit.
    Jan 13, 2012. 10:33 AM | Likes Like |Link to Comment
  • Should You Buy Google Straddle Ahead Of Earnings? [View article]
    Eiso,

    I actually described this strategy in one of my articles - http://seekingalpha.co...

    Did you play this in July 2011?

    With strikes about 10% from the price, what is the approximate credit on the whole condor? Probably around 0.50-0.60? So for GOOG, you would make 10-12% 8 out 10 times but lose 100% 2 times.
    Jan 13, 2012. 09:10 AM | Likes Like |Link to Comment
  • Pre-Earnings Strangle Trades For These 4 Tech Stocks [View article]
    Oscar,

    You will get IV increase but it will be very mild. Also the gains will be smaller if the stock moves due to lower gamma. But theta will definitely be lower.

    Selling straddle is too risky plus it requires high margin. Even if you make a gain, return on margin will not be high but if the stock makes a big move, the loss might be significant. Doing an iron condor will reduce risk.
    Jan 13, 2012. 08:58 AM | 2 Likes Like |Link to Comment
  • Trading Weekly Options With The SPDR Gold Trust And Others [View article]
    That's 50%, great return. 0.59 was for the trade like the one in the example, with longs 3 points apart? Today similar trade (157/158/161/162) has a mid of 0.59 as well. Usually how much you pay above the mid?
    Jan 12, 2012. 11:00 PM | Likes Like |Link to Comment
  • Should You Buy Google Straddle Ahead Of Earnings? [View article]
    I exited when GOOG was close to 620. My entry was 4.70 and exit 5.35. The trade is now delta negative, if the stock goes back to 620 or below, it will make decent money. If it goes higher, it will lose.
    Jan 12, 2012. 10:53 PM | Likes Like |Link to Comment
  • How To Strangle Citi, Wells Fargo Ahead Of Earnings [View article]
    chautrader, strangle will gain more if the stock moves, but straddle is more conservative because of smaller theta.
    Jan 12, 2012. 10:51 PM | Likes Like |Link to Comment
  • Trading Weekly Options With The SPDR Gold Trust And Others [View article]
    Kevin, you mentioned high, average and below average ROI - could you give us an idea about some numbers? Also you mentioned that for GLD you aim for 30-50%. In your example, 50% is the maximum possible gain, and to realize it, you typically would have to hold to expiration. For example, today GLD closed above $160 but 157/158 spread is still worth 0.95 - that's the mid, to sell it you probably will have to give up few cents,so 0.91-0.92 is more likely.

    I'm just trying to understand the practical aspects - some examples of your real trades might help.

    Thanks a lot!
    Jan 12, 2012. 10:27 PM | Likes Like |Link to Comment
  • Should You Buy Google Straddle Ahead Of Earnings? [View article]
    The returns in the table assume closing both legs at the same time. Since this is a straddle and most of the time Google report one day before expiration, one of the legs most probably will be worthless.
    Jan 12, 2012. 10:06 PM | Likes Like |Link to Comment
  • Is Apple Going To $700, Or Maybe $260? [View article]
    I guess I should write an article "Why you should short Netflix ahead of earnings" and then ask for political asylum somewhere they cannot find me..
    Jan 12, 2012. 07:36 PM | Likes Like |Link to Comment
  • Pre-Earnings Strangle Trades For These 4 Tech Stocks [View article]
    optionslam and http://bit.ly/yDiUsD
    Jan 12, 2012. 04:06 PM | Likes Like |Link to Comment
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