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.

Friday, June 15, 2012

Added To RUT And Apple Still Cooking

I added to my RUT position as planned. I added another butterfly centered at 750 PUTS with 50 wings. It gave me a bigger tent by moving the break evens out. I should hit my target within 7 to 14 days if we stay in the range within the tent. I will add another butterfly if the market rallies - GREEK ELECTIONS !!!!
Pic below shows what the position looks like now. The position is down 8%, which is expected as the market rallies. It needs a pullback to become profitable. A rally will allow me to make the position larger and earn more.






The Apple trade is still cooking. I'm in profit but haven't yet hit my target.


As with my daytrading, my option trades are pretty structured and easy to manage.





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6 comments:

  1. Marshall JungJune 15, 2012 at 8:55 AM

    EL, I might suggest that these types of trades are repeatable for the beginner in SPY ETF options. SPY has a very deep and liquid options chain that has smaller margin requirements and doesn't require a futures account. Just a suggestion. Thanks for the new blog!

    ReplyDelete
  2. MPJune 15, 2012 at 11:29 AM

    EL, is there a book you would recomend for option strategies?

    ReplyDelete
    Replies
    1. Electronic LocalJune 19, 2012 at 3:11 AM

      MP, sadly, there is not much out there on strategies. I'll try and start talking more about what I do as we get going.

      Delete
  3. AnonymousJune 16, 2012 at 9:29 AM

    Hi Tom, would you mind to explain a little bit what we see on your OptionsNet screen. It would be also very helpful to describe your different strategies and when you use then. Thanks, Jo

    ReplyDelete

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