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, October 10, 2012

Taking my Profit

The pic below shows a trade I have on: a double butterfly. You can see details of the trade on the pic. There was a long call as part of the trade but I have taken profit on it. The position is showing a profit of almost 10%. The problem is SPX is more difficult to get fills in than RUT and I can't get out without giving some profit back.

While ETFs are easier to get fills in, the commissions are too high. The problem with SPX is that it's still pit traded and has high volume - usually from big players. My small size seems to be ignored. I don't seem to have the same problem with the RUT. While I'm an ex local, getting rid of the pits couldn't happen soon enough for me. Even with the technological aids that didn't exist when I was in the pit, pit traded instruments are a lot less efficient for retail traders than the electronic traded instruments.


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