Trading Update 7-10-2014

Still have my strangle on in (NYSE:X). Initially sold the October17 40 Put/50 Call. Now Ive gone inverted (39Call/40Put) as the stock is trading at $35.54. I still have about 10 days until expiration and the iv rank is still very high ( at 100). Earnings are coming up in (NYSE:X) at the end of this month so iv rank may remain high until then. If (NYSE:X) rallies to between 39 and 40 at expiration, my trade will be a winner. If not, I may roll the trade and turn it into an earnings trade

Sold a put spread in (NYSEARCA:TBT) (-52Put/+50Put) for $0.5. It tanked after I sold it. Iv Rank is at 68 but bonds have been really rallying hard recently. This is an inverse ETF. If if keeps tanking, I could sell a call spread above the ETF price (for no extra buying power). Then you turn the trade into an iron condor. But for now duration is a traders friend as we wait for the volatilty to come out of the options so we can get paid.. The put spread expires on 21/11/2014

Finally did an earnings play in (NYSE:YUM). Iv rank was high at 76. I was bullish for the earnings so I sold the October 31 (67/66 Put Spread for $0.24)

If stock stays above $67 tomorrow and volatilty comes out of the put options (usually happens after earnings) – the trade will be a winner…

Until tomorrow..

About Individual Trader

Helping You Navigate The Markets For Profit
This entry was posted in Uncategorized and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s