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.

Wednesday, September 19, 2012

State of Play

Here are a couple of the positions I have on at the moment: a butterfly and an Iron Condor. These, I guess, are bread and butter trades. I'm looking at putting on some bear cll vertical spreads now that there is some topping indications. AAPL is quite hard at this level in case it does break the psychological $700 convincingly. But somehow I think it's all in the price unless iTV or a mini iPad rear their heads.



Below is a learning trade, for me, at least. I trade Calendars badly. I think it's because I never liked trading them on the floor and I usually only made markets in the front month where the volume was in those days.

This SLV position started off as a -10/+10 calendar that went negative. I wrapped it in a butterfly which I do like to trade so I could get to break even on the trade. The way I trade calendars at the moment is to require almost instant gratification. This one went negative too quickly so I did the butterfly adjustment. It's a tiny position as I'm still trying to find a better way of trading calendars but I'm showing the trade as an example of the adjustment.


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