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.

Tuesday, August 14, 2012

Monday's Trades

I had a busy Monday. Firstly, I put on a Directional Iron Condor trade in the SPX. It was biased a little on the downside as I think the market will back down or go sideways. When I take profit depends on how fast the market is moving and what adjustments I need to make.

As you can see, the position went into a small profit fairly quickly as the market moved down after I put the trade on. It's about a $15,500 Reg-T margin and I can earn between 10% and 30% during the next month based on the $4,600 credit I took in when I put the trade on.
None of yesterday's trades were triggered. Markets seemed to be inside the previous day's range. I'm looking at them again today.
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2 comments:

  1. Rdftrd1August 14, 2012 at 10:58 AM

    Tom, do you find these trades more difficult to price\\profit from given VIX at 14?

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  2. Electronic LocalAugust 22, 2012 at 10:29 PM

    Rdftrd1, whenever the environment is different to normal, it's harder as I have to do things a bit differently. Low vol means I earn less per $1 invested. I'm looking more at weeklies as the lower vol has less of an impact but weeklies have other challenges - much less forgiving.

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