Tuesday, June 5, 2012

6/5/12

Options strategy:

Put in the maximum exposure that i have had till now. Around $7000 in the market. Closed around $30 down. Now that i am getting commissions charged, i paid $60 in commissions to set up the trade. Now i need really good performance as 2% will be lost every week on commissions itself. I will be transferring more money to the account soon so that the commissions (which are more like fixed costs) become a smaller and smaller percentage of the returns.

Market assessment:

Markets rose from a belly flop last month. I am sure you must have heard "sell in may and go away" ... many people seem to have done that. AAPL was down while the market was up. I think i should have brought AAPL options today while they were cheap. I will try again tomorrow. It is a nice play right now with VIX high but not very high.

FB continues to fall. There will be buying at $24 for me. Maybe sell puts at $15 as I dont think it will go down that much in the short run. The next earnings will be key and FB-VIX will rise. It may make sense to go long on properly designed FB options, with less delta and high vega.

2 comments:

  1. Just discovered your blog today looking for AAPL option trade suggestions. Looks like you have good info and I'll follow you. Thanks for sharing.

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  2. Thanks Josh. I trade AAPL options and SPY options - the two most liquid ones. I keep writing everyday or every other day.

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