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, July 26, 2012

Updates AAPL and SPX

I scratched my AAPL trade (broke even except for commish). My idea of a better reception for the quarterly news was wrong. What was good that even when I wasn't right, I didn't lose on the trade. Options are a great vehicle.


The SPX trade is still open. As you can see from the risk graph below, I'm almost at my 10% profit, but not quite. I've been in the trade since July 17 and would like to get out now, so I might accept 8% rather than 10%. I'll see how the day progresses.






I'm planning on putting on a major RUT butterfly today or tomorrow. Major due to its size and type. I'm going to scale into the position if the market co-operates. More details when the first leg is on.


Meanwhile, I'm heading to the beach this morning as it's going to be a scorcher here in France. More vistors arriving here tomorrow. I'm only day trading when I have time and letting Flo, my algo, do the daytrading most of the summer and these option trades only need looking at once a day. Freedom!
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2 comments:

  1. Marshall JungJuly 26, 2012 at 6:37 AM

    Thanks for the updates EL. I follow along every day. I've been implementing these types of RUT butterflies with SPY options for some time and they work well for me. I've also used put verticals to "catch the knife" in particular stocks that I like to own long term for dividends or to sell premium against. Options are a wonderful tool that far too few people use effectively, but maybe it's better that they stay a bit of a mystery!

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  2. Electronic LocalAugust 2, 2012 at 7:48 AM

    Marshall,thanks. Good to hear from you. I'll show more verticals from next week onwards.

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