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.

Thursday, June 28, 2012

Double Diagonal

I have a new AAPL trade today. I bought an AAPL Double Diagonal for 20.20. I'm looking to earn 10% on my Reg-T margin. You can see the numbers on the pic below. This is not a directional play but an earnings play. This is not my favourite strategy, but in a range bound market it can do OK. It will take a while as you can see from the Theta (premium erosion) number at the bottom of the pic.


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2 comments:

  1. AnonymousJune 30, 2012 at 5:51 PM

    Can you show us the analysis you did to choose the underlying asset?

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    Replies
    1. Electronic LocalJuly 9, 2012 at 9:21 PM

      Anon, I don't do many DDs as they are usually adjusted with butterflys and I might as well do the butterfly in the first place. Bad analysis as I expected a more sideways market and ignored Earnings Season.

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