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Calendar spread Archives - Options Trading Strategies for Consistent Income - OptionPundit

Ms Vega is Here to Stay

By | General, Option Trading | 3 Comments

Pls allow me introduce you to Ms Vega. Ms Vega is my personification for Implied Volatility.  As of this writing, there is almost 3% IV difference for SPY ATM options, VIX is at 24, VIX Oct futures are at 30, a 25% difference!! Though nothing is certain in the markets, this skew does indicate that market participants are “unusually uncertain”. Stock markets are an interesting place as Market participants tend to have a short memory. With a few percent market rally, bears turn into bull and vice versa and most often the reason is “when the facts change, I change…

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OPNewsletter Jul 2010 Up +8.3%

By | Butterfly spread, Calendar spread, Double Diagonal, Iron Condor, OP Newsletter, Option Trading, Option Trading Strategy, Past Performance, US Market | No Comments

We are on track for our 28th positive month of OPNewsletter phase-2, as of last Friday close OPNewsletter Jul 2010 portfolio is up +8.3% on the maximum investment of almost 60% of portfolio capital. We have started opening Aug 2010 portfolios and our first portfolio is already positive. Let’s talk consistency first, especially on trades like Iron condor which is probably the most widely used option trading strategy. OPNewsletter has lost only 1 month of RUT iron condor since May 2008, and the drawdown was only 7.15% while gains have been around 12% on average per month. RUT Iron Condor for…

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OPNewsletter May +18%, June +5.3% (Open)

By | OP Newsletter, Past Performance, US Market, Worldwide Markets | 2 Comments

Another turbulent and volatile period! Last week started with a huge gap up rally after EU announced a $1trillion bailout package but by weekend it was a different story. Now there are questions on how solid it was. The confidence barometer, Euro, is now 4 years low and maybe even headed for $ parity as I wonder if EU will really step in to avoid Euro slide.  They should be pretty excited as EU economy may get much needed push with a weaker Euro. For OPNewsletter, we are 77% in cash. Remainder of the cash is invested across 3 income…

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OPNewsletter April +9.7% (closed); May +12% (Open)

By | OP Newsletter, Past Performance | No Comments

While markets are struggling to make any meaningful advance, for OPNewsletter, we are having another excellent month. We closed April’10 portfolios for +9.7% gains, and for May income portfolios, we are up +12% with 3 weeks to go. These results don’t include gains on speculative trades. Another point to note, these were also two months when I significantly upped investments allocation. In April’10 we invested 88% of capital and this month we invested 75% of capital. If one considers compounding effect, these income trades resulted in +18% gains on overall capital in just two expiration cycle alone (still 3wks to…

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OPNewsletter (Jul’09) + 2.64% (Open)

By | OP Newsletter, Option Trading, Option Trading Strategy, Past Performance, Technical Analysis, US Market | One Comment

Overall an interesting week that it was, but I think there is more to come. On a weekly basis, it appears as if MACD and RSI are about to register sell signals. Mr. Market can go whichever direction it wants to, but hey, at the end of the day, this is all about probability. And as I interpret the current market data, the probability of markets going lower are higher vs probability of its rallying higher. Oh well, maybe that I am the only one still standing and claiming that it is bear market rally. The jury is still out…

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A Record Month OPN (Jun’09) up +14.7%

By | OP Newsletter, Option Trading, Past Performance | One Comment

June 2009 was a record month (2009) for OPNewsletter! Overall June’09 OPN is closed up +14.7% (x- brokerage commissions) and +12.1% (including commissions). We invested almost 60% of 10K assumed capital across various sectors and diversified strategies. All the portfolios were closed positively. Overall an excellent performance that was almost double the OPNewsletter objective of 5-7% per month. Here is an update by individual portfolio- GDX was closed for +5.15% UPS was closed for +8.9% X was closed for +13.85% RUT was closed for +23.08% DIA was closed for +22.89% IWM was closed for +26.07% This doesn’t include returns on…

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