I think the homework was to place an option on SPY. I'm waiting to see
if Thursday's weeklies are better than today since the stock is
falling - hoping to get a Put in after tomorrow's numbers.
I did play with AAPL - obviously not an ETF but has weeklies and is
still great for learning:
Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50
premium
APR 58%
Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50
premium
I placed the BTC on Tuesday morning when the premiums were around
$2.50. I didn't think $1.50 limit would get filled but I thought just
in case it dropped, I wanted to grab it. So I placed my limit order
and left for the day. I was pleasantly surprised last night to see
that it had filled.
Since the price of Aapl had fallen so dramatically, I decided to place
a PUT last night (limit $3.05) to fill at the market open today
because I thought the price might possibly rise quickly after opening
(in fact, it has gone down :(. I did decide that I would be happy to
buy it at $660.
Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35
APR 116%
I'm waiting for an opportunity to BTC.
Theresa
Laurie Frederiksen on
Thanks for sharing your trades Theresa. I was also thinking it might finally be time to look at AAPL puts tomorrow.
I just sold COH 52.50 Puts this morning. I had a GTC cancelled order on them for $1.55 that I placed a while ago. It was way too high until the recent price drop. They're already down to $1.05 so I'm pretty happy about that.
I've been having better luck with GTC orders than with Day only limit orders. For some reason, it seems like there are slight price anomalies when the market opens and my GTC orders catch them. Of course, I haven't done this enough to make this anything other than a tiny anecdotal observation.
Maybe if you do any Puts on AAPL tomorrow, you can share them and we can all track it on the COOL Club homepage.
Anybody else looking at Puts on anything? SPY's?
Laurie Frederiksen Invest with your friends! www.bivio.com
I think the homework was to place an option on SPY. I'm waiting to see if Thursday's weeklies are better than today since the stock is falling - hoping to get a Put in after tomorrow's numbers.
I did play with AAPL - obviously not an ETF but has weeklies and is still great for learning:
Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50 premium
APR 58%
Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50 premium
I placed the BTC on Tuesday morning when the premiums were around $2.50. I didn't think $1.50 limit would get filled but I thought just in case it dropped, I wanted to grab it. So I placed my limit order and left for the day. I was pleasantly surprised last night to see that it had filled.
Since the price of Aapl had fallen so dramatically, I decided to place a PUT last night (limit $3.05) to fill at the market open today because I thought the price might possibly rise quickly after opening (in fact, it has gone down :(. I did decide that I would be happy to buy it at $660.
Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35
APR 116%
I'm waiting for an opportunity to BTC.
Theresa
Paul Madison on
Woohoo,
Way to go Theresa!
You are getting greedy now picking up 3 one hundred dollar bills at a time! Yes you calculated the APR perfectly. And if you could do the exact same thing every day of the year, you would actually get a 146% return on your money, wouldn't that be sweet.
APRs do in fact get big when we have one day turn arounds, STO one day and turn around and BTC the next.
Congrats and keep up the good work and thanks for posting!
Paul
On Sep 26, 2012, at 12:31 PM, Theresa H wrote:
> I think the homework was to place an option on SPY. I'm waiting to see if Thursday's weeklies are better than today since the stock is falling - hoping to get a Put in after tomorrow's numbers.
>
> I did play with AAPL - obviously not an ETF but has weeklies and is still great for learning:
>
> Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50 premium
> APR 58%
> Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50 premium
>
> $450 - $150 = $300 - $29.97 (commissions & fees) = $270.03 APR 146% (not sure if i calculated apr correctly)
>
> I placed the BTC on Tuesday morning when the premiums were around $2.50. I didn't think $1.50 limit would get filled but I thought just in case it dropped, I wanted to grab it. So I placed my limit order and left for the day. I was pleasantly surprised last night to see that it had filled.
>
> Since the price of Aapl had fallen so dramatically, I decided to place a PUT last night (limit $3.05) to fill at the market open today because I thought the price might possibly rise quickly after opening (in fact, it has gone down :(. I did decide that I would be happy to buy it at $660.
>
> Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35
> APR 116%
> I'm waiting for an opportunity to BTC.
>
> Theresa
>
Sharon McAllister on
Yesterday I sold COH Oct 55 puts for $1.80 when the price of the underlying was trading at $55.18. Today I sold QSII Oct 17.50 puts for $.55 when the price of the underlying was trading at $17.96. These are not investment recommendations. Please do your own due diligence!
As for AAPL puts, 1 AAPL contract represents far too much risk for me with respect to the position size I like to target for each position I hold. One AAPL put trade would ruin the work I've put into keeping my portfolio diversified so I do not have what I consider to be too much of any one thing in my portfolio. I mention this because not everyone has account sizes that can trade AAPL unless they take on significant risk by tying up a large percentage of their investable asset-base in one position. Each of us has differing amounts we manage and work with: what's right for one person cannot be applied universally.
I learned a big lesson in August, 2011 --> everything you sell a put on can actually be put to you no matter how far out of the money the trade was at the time you sold the put --- no matter how small the delta was at the time you put on the trade.
Laurie, like you, I've noticed that the first part of a trading day can be a bit wild before prices settle, which may explain the success you've had with GTC orders.
Sharon
On Wed, Sep 26, 2012 at 12:20 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Thanks for sharing your trades Theresa. I was also thinking it might finally be time to look at AAPL puts tomorrow.
I just sold COH 52.50 Puts this morning. I had a GTC cancelled order on them for $1.55 that I placed a while ago. It was way too high until the recent price drop. They're already down to $1.05 so I'm pretty happy about that.
I've been having better luck with GTC orders than with Day only limit orders. For some reason, it seems like there are slight price anomalies when the market opens and my GTC orders catch them. Of course, I haven't done this enough to make this anything other than a tiny anecdotal observation.
Maybe if you do any Puts on AAPL tomorrow, you can share them and we can all track it on the COOL Club homepage.
Anybody else looking at Puts on anything? SPY's?
Laurie Frederiksen Invest with your friends! www.bivio.com
I think the homework was to place an option on SPY. I'm waiting to see if Thursday's weeklies are better than today since the stock is falling - hoping to get a Put in after tomorrow's numbers.
I did play with AAPL - obviously not an ETF but has weeklies and is still great for learning:
Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50 premium
APR 58%
Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50 premium
I placed the BTC on Tuesday morning when the premiums were around $2.50. I didn't think $1.50 limit would get filled but I thought just in case it dropped, I wanted to grab it. So I placed my limit order and left for the day. I was pleasantly surprised last night to see that it had filled.
Since the price of Aapl had fallen so dramatically, I decided to place a PUT last night (limit $3.05) to fill at the market open today because I thought the price might possibly rise quickly after opening (in fact, it has gone down :(. I did decide that I would be happy to buy it at $660.
Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35
APR 116%
I'm waiting for an opportunity to BTC.
Theresa
Theresa H on
Sharon is absolutely right - AAPL is a lot of money to put on the line for 1 stock (depending, of course, on your financial situation). I ONLY use AAPL in the Virtual Trader as a learning tool - it's been a great way for me to get more comfortable & familiar with analyzing & placing calls & puts as I wait for good SPY options. I only own 7 shares of Aapl personally so unless they eventually do mini shares (and I buy 3 more shares,) I won't be doing Aapl options in real life. I have also been playing with COH, ALGN, SPY, ORLY, IWM, but since I started learning on the VT, Aapl has given me the most practice and I do enjoy following the company.
Theresa
On Sep 26, 2012, at 2:44 PM, Sharon McAllister wrote:
Yesterday I sold COH Oct 55 puts for $1.80 when the price of the underlying was trading at $55.18. Today I sold QSII Oct 17.50 puts for $.55 when the price of the underlying was trading at $17.96. These are not investment recommendations. Please do your own due diligence!
As for AAPL puts, 1 AAPL contract represents far too much risk for me with respect to the position size I like to target for each position I hold. One AAPL put trade would ruin the work I've put into keeping my portfolio diversified so I do not have what I consider to be too much of any one thing in my portfolio. I mention this because not everyone has account sizes that can trade AAPL unless they take on significant risk by tying up a large percentage of their investable asset-base in one position. Each of us has differing amounts we manage and work with: what's right for one person cannot be applied universally.
I learned a big lesson in August, 2011 --> everything you sell a put on can actually be put to you no matter how far out of the money the trade was at the time you sold the put --- no matter how small the delta was at the time you put on the trade.
Laurie, like you, I've noticed that the first part of a trading day can be a bit wild before prices settle, which may explain the success you've had with GTC orders.
Sharon
On Wed, Sep 26, 2012 at 12:20 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Thanks for sharing your trades Theresa. I was also thinking it might finally be time to look at AAPL puts tomorrow.
I just sold COH 52.50 Puts this morning. I had a GTC cancelled order on them for $1.55 that I placed a while ago. It was way too high until the recent price drop. They're already down to $1.05 so I'm pretty happy about that.
I've been having better luck with GTC orders than with Day only limit orders. For some reason, it seems like there are slight price anomalies when the market opens and my GTC orders catch them. Of course, I haven't done this enough to make this anything other than a tiny anecdotal observation.
Maybe if you do any Puts on AAPL tomorrow, you can share them and we can all track it on the COOL Club homepage.
Anybody else looking at Puts on anything? SPY's?
Laurie Frederiksen Invest with your friends! www.bivio.com
I think the homework was to place an option on SPY. I'm waiting to see if Thursday's weeklies are better than today since the stock is falling - hoping to get a Put in after tomorrow's numbers.
I did play with AAPL - obviously not an ETF but has weeklies and is still great for learning:
Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50 premium APR 58% Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50 premium
I placed the BTC on Tuesday morning when the premiums were around $2.50. I didn't think $1.50 limit would get filled but I thought just in case it dropped, I wanted to grab it. So I placed my limit order and left for the day. I was pleasantly surprised last night to see that it had filled.
Since the price of Aapl had fallen so dramatically, I decided to place a PUT last night (limit $3.05) to fill at the market open today because I thought the price might possibly rise quickly after opening (in fact, it has gone down :(. I did decide that I would be happy to buy it at $660.
Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35 APR 116% I'm waiting for an opportunity to BTC.
Theresa
Sharon McAllister on
Hi Paul,
Congratulations on beating me on the COH Oct 55P premium. I'll need to work harder on the BTC to catch you. <grin>
Yesterday I sold COH Oct 55 puts for $1.80 when the price of the underlying was trading at $55.18. Today I sold QSII Oct 17.50 puts for $.55 when the price of the underlying was trading at $17.96. These are not investment recommendations. Please do your own due diligence!
As for AAPL puts, 1 AAPL contract represents far too much risk for me with respect to the position size I like to target for each position I hold. One AAPL put trade would ruin the work I've put into keeping my portfolio diversified so I do not have what I consider to be too much of any one thing in my portfolio. I mention this because not everyone has account sizes that can trade AAPL unless they take on significant risk by tying up a large percentage of their investable asset-base in one position. Each of us has differing amounts we manage and work with: what's right for one person cannot be applied universally.
I learned a big lesson in August, 2011 --> everything you sell a put on can actually be put to you no matter how far out of the money the trade was at the time you sold the put --- no matter how small the delta was at the time you put on the trade.
Laurie, like you, I've noticed that the first part of a trading day can be a bit wild before prices settle, which may explain the success you've had with GTC orders.
Sharon
On Wed, Sep 26, 2012 at 12:20 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Thanks for sharing your trades Theresa. I was also thinking it might finally be time to look at AAPL puts tomorrow.
I just sold COH 52.50 Puts this morning. I had a GTC cancelled order on them for $1.55 that I placed a while ago. It was way too high until the recent price drop. They're already down to $1.05 so I'm pretty happy about that.
I've been having better luck with GTC orders than with Day only limit orders. For some reason, it seems like there are slight price anomalies when the market opens and my GTC orders catch them. Of course, I haven't done this enough to make this anything other than a tiny anecdotal observation.
Maybe if you do any Puts on AAPL tomorrow, you can share them and we can all track it on the COOL Club homepage.
Anybody else looking at Puts on anything? SPY's?
Laurie Frederiksen Invest with your friends! www.bivio.com
I think the homework was to place an option on SPY. I'm waiting to see if Thursday's weeklies are better than today since the stock is falling - hoping to get a Put in after tomorrow's numbers.
I did play with AAPL - obviously not an ETF but has weeklies and is still great for learning:
Sept 24 SELL TO OPEN Aapl Sept Wk4 675 PUT 1 contract $4.50 premium
APR 58%
Sept 25 BUY TO CLOSE Aapl Sept Wk 4 675 PUT 1 contract $1.50 premium
I placed the BTC on Tuesday morning when the premiums were around $2.50. I didn't think $1.50 limit would get filled but I thought just in case it dropped, I wanted to grab it. So I placed my limit order and left for the day. I was pleasantly surprised last night to see that it had filled.
Since the price of Aapl had fallen so dramatically, I decided to place a PUT last night (limit $3.05) to fill at the market open today because I thought the price might possibly rise quickly after opening (in fact, it has gone down :(. I did decide that I would be happy to buy it at $660.
Sept 25 SELL TO OPEN AAPL Sept Wk 4 660 PUT 1 contract $4.35
APR 116%
I'm waiting for an opportunity to BTC.
I compare the model option value to the actual bid price to see how the
market volatility compares. I like to see the actual price equal or greater
than the model.