Trade Details for May 2007

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Here is a list of some of the major income trades I have opened for May 2007 and also shared 3 of these 4 for general OP Reader’s viewing:

Trade-1

Date: April 5-6, 2007
Description: Long RUT May 870 calls/May 750 puts, Short May 860 calls/ 760 puts
Credit:$2.05 per trade, Margin required : $7.95 per trade
Profit or Loss:$0.55 or 6.9% and still open

Trade-2

Date: April 10-11, 2007
Description: Long DOW Sept 55 calls/Sept 35 puts, Short May 50 calls/ 40 puts
Credit: $0.15 per trade, Margin required : $4.85 per trade
Profit or Loss: Flat and still open

Trade-3

Date: April 12-13, 2007
Description: Long SPY May 149 calls/May 139 put, Short May 147 calls/ 141 puts
Credit: $0.95 per trade, Margin required : $1.05 per trade
Profit or Loss: Almost flat and still open

Trade-4

Date: April 12-13, 2007
Description: Long OIH Oct 150/155 puts, Short May 150/155 puts
Debit: $1035 per spread
Profit or Loss: Flat and still open

Besides above trades I also have other trades that are continuing from past months. I am already 80% invested for the month of May. Speculative plays due to earnings and pinning are very small, therefore remaing cash is good enough to play an accelerator’s role should a good opportunity strike.

Profitable trading, OptionPundit

Disclaimer: Pls read terms and conditions beforehand should you decide to transact based on OP’s posts.

Comments

11 responses to “Trade Details for May 2007”

April 16, 2007

chiu

It is a good thing to do to give detail on the trade that you are making that your readers are able to follow.

In prospective, it is particularly interesting to have two categories of trades : income vs speculative. Income is the type that we would like to do it month after month on a high probability of success manner with reasonable risk reward ratio.

Reply
April 16, 2007

odaz60zy

Thank you for this blog.

Please explain “accelerator role”.

Reply
April 16, 2007

OptionPundit

Thanks Chiu.

ODAZ60zy, accelerator (or dampener) refers to speculative trade where I invest very low percentage of portfolio so even if I lose all that, it doesn’t affect overall portfolio very much. if it turns out to be the way I wanted, sure, it will “accelerate” portfolio returns like last month NDE, PDE, BKUNA and NEW did.

Reply
April 17, 2007

MikeN

Thanks for the great ideas. A question re: your OIH double calendar–what made you consider the MAY/OCT vs. the MAY/JUL? I understand the chance for several more rolls inherent in the OCT date, but the risk of the additional months seems rather high unless you think OIH will stay in the “range”.

Again, thanks for all the effort you put into these postings.

Reply
April 17, 2007

OptionPundit

Mike, Thanks for the kind words.
The simple idea was to maximize theta gains. Oct has less theta decay vs Jul and hence the returns are better.

Reply
April 20, 2007

azamaniac

thank u for sharing. how do u exit your trade? say RUT, do u buy your short legs to close the trade. there is a chance of being assigned if RUT moves against your trade direction the day after expiration date.

Reply
April 21, 2007

Weekly Update on May’07 Income Trades | OptionPundit

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April 22, 2007

slimetar

SPY is never a good candidate for IRON condors, premium isn’t there. The trades strikes Short 147 calls long 149 calls were within one standard deviation hence they got hit badly.

I will never trade SPY for an Iron condor strikes to short premium too little.

Reply
April 27, 2007

Weekly Update on May’07 Income Trades (4/28)- Overall up 10% | OptionPundit

[…] Here is the 2nd weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here. […]

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May 4, 2007

Weekly Update on May’07 Income Trades – Portfolio up 14% | OptionPundit

[…] Here is the 3rd weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here and here. […]

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May 12, 2007

Weekly Update on May’07 Income Trades – Portfolio up 20% | OptionPundit

[…] Here is the 3rd weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here, here and here. […]

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