You are looking at posts that were written in the month of October in the year 2006.
| YTD Performance |
||
Wins |
Losses |
Win% |
7 |
1 |
87.5% |
| Life Time Performance |
||
7 |
1 |
87.5% |
| YTD Return: | 20.45% |
|
| YTD Annualized: | 47.24% |
|
| Life Time Return: | 20.45% |
|
| Since: 6/7/2006 | ||
| Updated: 11/10/2006 | ||
Posted on October 31st, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Opened Online Option Trades.
Option Trading Mathematics (how to read?)
We added to our Dec position. Poor risk/reward ratio but very low risk.
1275/1300 - 1475/1500 x5
Max option trading reward : $650 if 1300 - 1475
option trading risk : -$3268 if below 1300 (4.47%) or -$4665 if above 1475 (3.33%)
Max option trading risk : -$12500 if below 1275 or above 1500 (2.36%)
Expected Value: $297.88
Posted on October 30th, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Update Analysis.
The last two down days helped our position. Our portfolio’s EV is now positive for the month of Nov. The risk EV is below the max allowed by the strategy. However, it is not below enough for us to establish a position for Dec without going over the allowed risk threshold.
From a technical point of view, it is also not a good time to establish a new position. The risk and reward ratio is poor because the 3 month up move has removed much of the volatility in the market. Additionally, the high slope of the upwards trend would require us to establish a stike price that is far out of the money, resulting in very little reward on the upside. On the down side, there is very little support as many of the short sellers have been forced out of the market to cover their positions.
Posted on October 23rd, 2006 by PokerOption.
Categories: Closed online option trades (Performance).
The best case scenario for Nov will not happen as it took all but one trading day for the market to penetrate 1375. The closing trade was buying the Nov 1375 at 16.2 and selling the Nov 1400 at 4.6.
Posted on October 20th, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Closed online option trades (Performance).
Both of the Oct options expired when the market opened this morning for a total profit of $1090. This marks the fourth straight month of profit and our portfolio’s winning percentage of 100% stays in tact. Our positions are now 7 for 7. This brings our total realized gain to $2900. Looking forward:
There are 3 likely outcomes for our Nov position.
The current EV of the Nov position is -472.35. Yikes!
The delta is -76.74.
The combination of high risk in our portfolio and low volatility will likely prevent us from establishing a Dec position until one or both factors improve.
Posted on October 19th, 2006 by PokerOption.
Categories: F.A.Q..
Q: Cash-based or Future-based?
A: Cash based - this means our option do not have any physical entity underlying to option contract. When this type of option is exercised or assigned, the settlement is done with cash only.
Q: European or American Exercise?
A: European exercise - this means that the option may only be exercised on it’s expiration day. This is different than American exercise options, where the options may be exercised at any time.
Posted on October 19th, 2006 by PokerOption.
Categories: F.A.Q., Make a Fortune Option Trading System, Update Analysis.
The expiration date for all listed stock options in the U.S. is the third Friday of the expiration month.
So as long as the S&P does not move up 8+ points tomorrow, our Oct options will expire worthless and the portfolio’s realized gains will increase by $1090.
Looking forward, our Nov position is still very much at risk. We will take a minor loss if the S&P index advances beyond 1375; a major loss if it advances beyond 1400.
Next week we will also decide if we will establish a Dec position. Option premiums are very low right now because volatility is low. volatility is low because the market, for the most part, has been moving in one direction, up. So it may be difficult to find positions that offer enough reward to justify the risk.
Posted on October 17th, 2006 by PokerOption.
Categories: F.A.Q..
Effective concurrently with the October 2006 expiration, the threshold for automatic exercise and assignment of option contracts is reduced to $.05. This is a reduction from the previous threshold of $.25.
In other words, options that are in-the-money at 4:00 p.m. EST on the Friday preceding monthly expiration by an amount equal to or greater that $.05 will be exercised automatically. For example, if a customer has an account which contains a long equity option position which is in-the-money by at least $.05, the position will be automatically exercised. Conversely, if a customer has an account which contains a short equity option position which is in-the-money by at least $.05, the position is likely to be automatically assigned by the options Clearing Corporation (”OCC”).
This change in option expiration exercise procedures was put into effect by the OCC with the approval of the Securities & Exchange Commission and is standard practice throughout the industry.
Posted on October 14th, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Update Analysis.
Three straight weeks of impressive gains have left us with very little breathing room (9 points with one week to go before the Oct options expire). Additionally the Nov 1375 call is on life support. Only a market correction next week can save it from becoming a losing position. Unfortunantly with the strong up trend, this is not likely to happen.
Posted on October 9th, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Update Analysis.
delta : -107.17
theta : 141.46
Posted on October 5th, 2006 by PokerOption.
Categories: Make a Fortune Option Trading System, Update Analysis.
What a great day for the market and what a bad day for our portfolio. We started today with 13 trading day before our Oct options expire with 41 point cushion. With the 16 point rise, we are left with 25 points for 12 trading days. This is very similar to our situation on Sep 1st:
The Sep option 1325/1350 on the call side has been under pressure all month. We started this week at 1295, about a 30 point cushion. Unfortunately the S&P index moved up 15 points and is now sitting at 1310. That leaves use with only 15 points of breathing room. The only consolation is that there are only 9 trading day left till the Sept options expire.
Hopefully we will have the same happy ending.
Unlike Sep, however, our position for the following month is not as promising. One of our Nov position also has a 1375 strike price. So unless the market corrects, we will likely suffer some loss. *knock on wood*
