Option Trading Tips Usa

Option trading tips usa

Option trading tips usa

Option Portfolio

Market Close January 19, 2017

P&L up $3

SymbolPositionPriceCloseP&L
GLW Short Iron Condor
GLW Feb17'17 $25 Call-30.480.473
GLW Feb17'17 $26 Call30.20.16-12
GLW Feb17'17 $23 Put-30.230.26-9
GLW Feb17'17 $22 Put30.130.221
Total-1.14-1.113
Grand Total3

How to Adjust a Losing Iron Condor?

January 25th, 2017

Looks like my pre-earnings Iron Condor strategy was indeed a bad idea.

GLW released their earnings before the market opened Tuesday 24th January to the surprise of analysts.

Core EPS turned out to be $0.50 on a predicted $0.44.

Option trading tips usa

The stock opened strong and rallied higher throughout the day to close the session up 5.7% to $26.18.

The stock is now outside the upper breakeven point of $25.38 and if it continues I will realise my max loss of $186 ($62 per contract).

What Options do I have to Adjust?

I have a few alternatives to consider as to how to manage this trade at this point:

  1. Do nothing and hope that the market pulls back from now until expiration
  2. Sell a higher strike put spread
  3. Sell a higher strike put spread in the next expiration
  4. Reverse the existing short call spread into a long call spread
  5. Close the short call and leave the long call to run
  6. Double down with another Iron Condor

In considering the above, I looked at the option prices at the close for the Feb 17th options:

Since the pop in stock price due to earnings, the uncertainty has since been remove and can be seen in much lower option prices.

Implied volatility has dropped to 18% so 2, 3 and 6 don’t look like bringing in much premium.

Robinhood Top 5 Option Trading Tips

Plus, putting on another Iron Condor in March would mean having to put it with narrow strikes in order to make it worthwhile but also means a lower chance of the stock staying between the bands.

Also to consider is the sentiment since the report, which was very favorable for the future outlook of the stock.

I would say that I am now bullish on the stock.

Pre-market activity also shows a strong open with the stock having traded $26.30 with an hour before the open.

Option trading tips usa

So what I’m going to do is go with #5 above; close out the short $25 call and leave the $26 long call open. The $25 calls closed at $1.32 but with the pre-market looking to open higher, I’m not sure what price to go with. Perhaps yesterday’s offer price of $1.35?

Iron Condor Pre-Earnings

January 19th, 2017

It's not always a good idea to take on short volatility strategies pre-earnings, but take a look at this Iron Condor setup for GLW.

B/SStrike C/P Price
 Sell$25Call0.48
Buy$26Call0.20
Sell$23Put0.23
Buy$22Put0.13
Total Credit$38

The stock has earnings out January 24th and the options expire February 17th.

Option trading tips usa

The implied volatility suggests there is some uncertainty leading into the announcement; IV is relatively high at 25% compared to historical vol of 15%.

Max profit on this is $38 per contract, which is the net credit received at the time of trade. Max loss is $62. At the current volatility level, there is a 69.27% chance of success with this trade.

Long 5 $12.50 Call Options

Trade Start: 25th October

Description.

Option Scans for 24th October

Option Prices for 24th October

Long 5 $15 Put Options

Trade Start: 24th October, 2016

Only 0.55 for these puts when they are 3 months out.

Option trading tips usa

The chart doesn't make it look like a good trade but there's plenty of time in this one. Earnings are out October 28th.

Option Scans for 21st October

Option Prices for 21st October

2016 Closed Position Summary

TradeOpenCloseDaysP&LTotal
COH Iron Condor25-Jan-165-Feb-161131.431.4
COH Adj Call Spread3-Feb-165-Feb-16255.586.9
CAT Short Call Spread28-Jan-1612-Feb-1615-22.564.4
COH Assignment8-Feb-1612-Feb-16474.6139
FCX Iron Butterfly28-Jan-1618-Feb-162135174
FSLR Iron Condor23-Feb-1626-Feb-163-26.2147.8
TGT Short Call Spread23-Feb-1626-Feb-163-66.681.2
EPD Put Bear Spread29-Feb-1618-Mar-1618-4041.2
SPY Iron Condor2-Mar-164-Mar-162-2219.2
RCL Put Spread24-Mar-1615-Apr-1622-143.5-124.3
MU Straddle30-Mar-161-Apr-162-50.6-174.9
RIG Put Spread30-Mar-1615-Apr-1616-56.7-231.6
VZ Long Call30-Mar-1615-Apr-1616-101.6-333.2
JWN Long Put30-Mar-1615-Apr-1616364.231
C Straddle31-Mar-1615-Apr-1615221.8252.8
EMC Long Put13-Apr-1620-May-1637-16092.8
ETE Long Call19-Apr-1620-May-1631168260.8
MRO Long Call19-Apr-1620-May-1631-75185.8
KEY Long Call20-Apr-1620-May-16306191.8
MS Long Put20-Apr-1620-May-1630-10091.8
VALE Long Put21-Apr-1620-May-1629360451.8
JNPR Long Put21-Apr-1620-May-1629-62389.8
KMI Long Call28-Apr-1620-May-1622-100289.8
IPHI Long Call29-Apr-1620-May-1621-55234.8
NG Long Call29-Apr-1620-May-1621-80154.8
MRO Short Call29-Apr-1620-May-162155209.8
CTL Long Put2-May-1620-May-1618212421.8
HIMX Long Call9-May-1613-May-164-55366.8
ETE Short Call10-May-1620-May-161055421.8
VIAV Long Call24-May-1617-Jun-1624-100321.8
CYH Long Strangle25-May-1617-Jun-1623-110211.8
HBI Long Strangle31-May-1617-Jun-1617-11596.8
ANF Long Put31-May-1617-Jun-1617-906.8
RF Long Call1-Jun-1617-Jun-1616-80-73.2
WLL Long Put8-Jun-1624-Jun-1616300226.8
ANF Covered Put17-Jun-1624-Jun-16760286.8
ATVI Put Spread2-Jun-1615-Jul-1643-126160.8
CY Long Call2-Jun-1615-Jul-1643-42118.8
GOGO Long Put6-Jun-1615-Jul-1639-124-5.2
VLO Long Put6-Jun-1615-Jul-1639-100-105.2
RBS Long Call8-Jun-1615-Jul-1637-120-225.2
PBI Long Call9-Jun-1615-Jul-1636-100-325.2
GGAL Long Call9-Jun-1615-Jul-163660-265.2
MT Long Call9-Jun-1615-Jul-1636-110-375.2
PLD Long Call9-Jun-1615-Jul-163690-285.2
VIAV Covered Call22-Jun-1622-Jul-1630258-27.2
BID Long Call11-Jul-169-Aug-162919501922.8
NLY Long Put8-Jul-1619-Aug-1642-901832.8
LGF Long Put8-Jul-1619-Aug-1642-1451687.8
CMCSA Long Call11-Jul-1619-Aug-1639-1001587.8
D Long Put26-Jul-1619-Aug-1624-1351452.8
PEG Long Put27-Jul-1619-Aug-16231401592.8
KR Long Call27-Jul-1619-Aug-1623-1501442.8
DB Long Put11-Aug-1616-Sep-1636-1501292.8
LOW Long Put11-Aug-1616-Sep-163610502342.8
FIT Long Call11-Aug-1616-Sep-1636-1262216.8
GT Long Call18-Aug-1616-Sep-16294502666.8
NUAN Long Put18-Aug-1616-Sep-1629-1402526.8
GFI Long Call13-Sep-1621-Oct-1638-1702356.8
EGO Long Call14-Sep-1621-Oct-1637-2002156.8
CCL Long Put19-Sep-1621-Oct-1632-1202036.8
BAC Long Butterfly27-Sep-1621-Oct-16241052022.8
DDD Long Put20-Sep-1627-Oct-1637-491987.8
JCP Long Call Spread23-Sep-1627-Oct-1634-471940.8
CNP Long Call26-Sep-1627-Oct-1631-1501790.8

2015 Closed Position Summary