StockFetcher Forums · General Discussion · buy the lvs 18 call and 12.5 put strangle now its 1$<< 1 2 >>Post Follow-up
MARY4MONEY
806 posts
msg #82026
Ignore MARY4MONEY
10/29/2009 12:47:48 PM

2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 18.0 $0.55 -- -$990.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 13.0 $0.55 -- -$715.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 12.0 $0.55 -- -$660.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 1.0 $0.55 -- -$55.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 20.0 $0.55 -- -$1,100.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 6.0 $0.55 -- -$330.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 14.0 $0.55 -- -$770.00
2009/10/29 Buy to Open LVS Nov 09 12.50 Put LVS 76.0 $0.55 -- -$4,180.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 4.0 $0.45 -- -$180.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 51.0 $0.45 -- -$2,295.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 40.0 $0.45 -- -$1,800.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 16.0 $0.45 -- -$720.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 14.0 $0.45 -- -$630.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 102.0 $0.45 -- -$4,590.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 69.0 $0.45 -- -$3,105.00
2009/10/29 Buy to Open LVS Nov 09 18.00 Call LVS 4.0 $0.45 -- -$180.00


Kevin_in_GA
4,546 posts
msg #82029
Ignore Kevin_in_GA
10/29/2009 1:13:02 PM

Just did this in my paper trading account (my learning vehicle). Bought 20 contracts of each.

M4M: Why these particular call and put strikes? What about the settings is advantageous over other strangles?

karennma
6,827 posts
msg #82030
Ignore karennma
modified
10/29/2009 1:41:52 PM

I can't buy anymore ....
I've got too many options going sour.


karennma
6,827 posts
msg #82045
Ignore karennma
10/29/2009 3:59:25 PM

56,000,000 traded!
a record!


karennma
6,827 posts
msg #82051
Ignore karennma
modified
10/29/2009 5:01:37 PM

nevermind.
figured it out.

The question is ... will the gain in your calls, offset the loss in your puts ...?


Kevin_in_GA
4,546 posts
msg #82125
Ignore Kevin_in_GA
modified
10/30/2009 11:12:38 AM

Answer - NO.

Down 45% from yesterday. Obviously the puts outweigh the calls here - were you expecting the price to drop???

Ahh, I see that you bought 300 calls and only 160 puts. That would have been important to state - not only the strike price but the relative volume for both sides.

Why these settings, M4M? What was your rationale? What learning does one take away from this - what would have been the better strangle?

I would like to learn here - hopefully you'll respond.

cjg123
7 posts
msg #82134
Ignore cjg123
10/30/2009 1:16:49 PM

Kevin, perhaps this extract from one of M4M's threads will help.

Check the "you can also use option pain value to sell options the last week of exp 10/9/2009 10:49:29 AM" thread. M4M uses the following example with RIMM.

let do another stock too to give you more examples of selling puts and calls using the option pain value--lets use rimm--its pain value is 70$---rimms price is 69.84$ that pretty cool- the 75 oct calls are 0.21 and the 65 puts are 0.18-- so we will buy 5100$ of each that would be 300 of the 65puts and 255 of the oct 75 calls--Activity Date Transaction Description Symbol Qty Fill Price Commission Net Amount
2009/10/09 Sell to Open RIMM Oct 09 75.00 Call RIMM -160.0 $0.20 -- $3,200.00
2009/10/09 Sell to Open RIMM Oct 09 65.00 Put RIMM -6.0 $0.17 -- $102.00


karennma
6,827 posts
msg #82135
Ignore karennma
10/30/2009 1:53:56 PM

Hey guys:
Pls note: "Buy to Open" is not the same as "Sell to Open".
Yesterday's strategy on LVS was a LONG strangle. (buying OTM calls n' puts).

The above referenced RIMM strategy was a SHORT strangle (selling OTM puts and Selling OTM calls).
On 10-09-09, when M4M sold the$75 RIMM calls (Sell to Open), he pocketed the $3,200.00 because RIMM never went up.
When M4M sold the RIMM $65 puts, he also kept the $102.because by the time RIMM went below $65 (10-27-09), the put was worthless, deeming the buyer of the put the loser, thus allowing M4M to keep the premium.


karennma
6,827 posts
msg #82136
Ignore karennma
10/30/2009 2:13:18 PM

Re:
"The question is ... will the gain in your calls, offset the loss in your puts ...?"

Kevin_in_GA
- Kevin_in_GA
10/30/2009 11:12:38 AM

Answer - NO.
=============================================================================================

Kevin:
M4M may have a gain on BOTH positions.
The PUTS don't expire until 11-18-09.
Today's only 10-30-09.
He's got plenty of "time" to realize a gain on the puts, thus making BOTH positions profitable.

machismo
115 posts
msg #82138
Ignore machismo
10/30/2009 2:24:29 PM

karennma thanks for suggesting optionhouse.com, I am using their virtual trading and its quite ok. Also my 25 LVS 12.5 puts are looking ok now that LVS is negative for the day.


StockFetcher Forums · General Discussion · buy the lvs 18 call and 12.5 put strangle now its 1$<< 1 2 >>Post Follow-up

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