Option Trading Tips Usa

Option trading tips usa

Option trading tips usa

Option Portfolio

Market Close January 19, 2017

P&L up $3

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
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
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


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

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