Theta Positive - Option Trading

What worked in July / What did not

I realize I am a bit absent from the blogosphere  - Great summer in NY, tonight I gave a presentation at the ISE "How to become a professional trader", clean the house for a old time friend coming over from Holland next week, working on a new website - those are the little tidbits which have kept me busy.

I just finished my July administration so here is my monthly what worked and what did not work post.

Worked
Earning trade: AA
Long Term Calendar: AA
Directional vertical: AAPL, AMZN, AU, AXE, BA, FCX, FSLR, GMCR, KO, LLL, MT, VPRT
Calendar: CL, RUT, XSP
Double Diagonal: DIA, IWM
Iron Condor: NDX. RUT
Butterfly: RUT
Pairs trade: FDX/UPS
Directional; TLT

Did not work
Directional vertical: BHP, BTU, CAT, DE, KOL, SNDA
Speculative straddle: BGZ, FAZ
Cash Cover Puts: PCU

BHP run away from me - should have kept it  tighter

All in all July was a good month - I did not hit it out side the park - but close to a 2nd base run - 12 times July would satisfy my appetite.

Market Comments July 19th

Download 2009-07-19_2018

Market Comments July 16th

Download 2009-07-16_0832

Market Comments July 15th

Download 2009-07-15_0828

Market Comments July 14th

Download 2009-07-14_0837

Market Comment July 12th

Part 1
Download 2009-07-12_2106_part_I

Part 2

Download 2009-07-12_2111_part_II

part 3
Download 2009-07-12_2116_part_iii

Morning Report July 10th

I reduced my portfolio delta again around 3pm - for the second time the market could not break Wednesday high.  Download 2009-07-10_0708

Morning Report July 9th

I am having computer problems - have to resort back to a written market update;

a couple of point of interest;

• The Standard Deviation moves have not changed much 1sd Rut 11, 1sd SPX 17 pnts.
• Yesterday volume action on the SPY - volume size reducing during 'sell off' and volume size picking up while market returned to open levels.
• Yesterday Intra day VIX while market retest low of morning VIX was off its mornings high - always a tell tail of what the big boys and girls are doing.

I had a AA earnings play to share;
a 9 July Straddle combined with a 9/10 dbl calendar. The main reason to enter the trade was a raised IV in July. JUL IV is priced 50 points above AUG IV. That will have to balance out during the hours of trading. Currently it seems that the straddle will be a loss and the DBL CAl seems to be doing just fine.

Now @ 8:50AM EST the markets are testing Yesterday high - Always an interesting point to watch carefully.

I am running to the limits of my current computer to do the vdx stuff - So Newegg can expect an order anytime soon.

Morning Report July 8th

Download 2009-07-08_0725


Trade @ your own risk - get educated before you start

Morning Report July 7th

Download 2009-07-07_0832


Video Report - with a Market overview for non-directional traders (educational only) - Trade at your own risk.