EL TRADES OPTIONS

This blog will show my longer term Swing trades using OPTIONS. I use specific income producing option strategies with a DIRECTIONAL BIAS. Having a directional bias is critical in earning more, even from what are generally called income trades such as butterflies and condors. The aim of my strategies is to give me more than a 66% edge and to provide a greater than 80% win rate within that edge. The blog shows you the trades I make and how I manage them. For my directional bias, I use the same EL methodology as I employ in my day trading that you have seen for years in the original ElectronicLocal blog. Read the disclaimer.

Monday, June 18, 2012

AAPL and Europe

I took my profit at 11% on my AAPL position, as was set in my trading plan. Pic below shows how it looked on Friday when the trade was made.




The Greeks voted but things seem far from over. The guy that failed to form a coalition government in May now has to try again. A tough ask. Maybe I'll have an opportunity to add another butterfly to my RUT position if the market can rally a little more. As of writing early in the morning London time, ES is trading at 1343.00. I need the equivalent RUT price to be higher before I can add.
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5 comments:

  1. AnonymousJune 18, 2012 at 6:03 AM

    EL - Have you done any work placing 2 narrower b'flys on each side of current price? Theory would be that you expect a move, but unsure of direction. Kind of a straddle strategy without as much theta risk.

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    Replies
    1. Electronic LocalJune 19, 2012 at 3:25 AM

      Anon 6:03, I usually have a fairly clear directional bias and manage the trade even if it goes against me. The current RUT trade is an example. I'll be posting about it tomorrow. I am not a fan of narrow BFlies. Theta is not a risk for me. I want it. Vega on the other hand ....

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  2. AnonymousJune 18, 2012 at 6:47 PM

    Hi Tom
    Do you ever put on directional calendars instead of butterflies?
    Thanks
    John

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    Replies
    1. Electronic LocalJune 19, 2012 at 3:28 AM

      John, I mainly use calendars as an adjustment against my vega. I haven't found calendars to earn me as much as butterflies. My favourite trade is one I haven't shown in the blog yet: a directional ratio broken wing butterfly - a very interesting spread with lots of possibilities in both risk mitigation and profitability.

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    2. AnonymousJune 19, 2012 at 8:53 PM

      Looking forward to your post on the bwb

      Delete

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