Owner: Index options trading for consistent monthly income URL:http://www.indexoptionstrading.alliancemtg.com Join Date: Fri, 01 Aug 2008 04:20:05 -0500 Rating:0 Site Description: Powerful options strategies for consistent monthly income. Site statistics:Click here
August NDX trade 2008-07-30 19:41:11 With the market having a follow through day on July 29th , 2008 it seems like we are headed higher from here for sometime, unless we get one or more distribution days and that undercuts the rally. With about 15 days into expiration left, and NDX being stuck in narrow sideways channel, here is [...] Read more:August
August NDX and RUT Trades closed 2008-07-29 14:20:34 The market is up 200 today with NDX and RUT up 40 and 17 points at one time. This could be a follow through day as per Investors Business Daily- perhaps. I took the opportunity and closed both trades as the theta ( time decay ) is minimal and its tying up margins in our [...] Read more:August
August Trades- Calendar spread QQQQ 2008-07-25 16:01:47 QQQQ
SELL AUGUST 46 CALL BUY AUGUST 46 CALLS Net debit= 0.74
This is qqqq guerrilla trade for rapid gains next 20 days till expiration. Break even are 44.30 and 48.40 another leg can be added to this if QQQQ’s start trading down next week. Read more:August
, Calendar
August Trades - Double Calendar spread IWM 2008-07-22 21:06:58 IWM Calendar
spread.
SELL AUGUST 70 PUTS BUY SEPTEMBER 70 PUTS Net debit = 1.08
SELL AUGUST 71 PUTS BUY SEPTEMBER 71 PUTS Net debit= 1.08
Break evens on expiration 67.22 and 74.44 Due to the rising market this trade may need one or two adjustments during its 24 day periods. This is called a GUERILLA TRADE rap Read more:August
August Trades- RUT and NDX Iron condors 2008-07-21 20:37:25 These trades are good for 1-5 days following July expirations.
RUT
SELL RUT AUGUST 610 PUTS
BUY RUT AUGUST 600 PUTS Net credit 0.45
Margin required = 1000-0.45= 955 Probability 98%
This is the first leg is a BULLPUT SPREAD of the final IRON CONDOR, that may be completed at any future date
NDX
SELL AUGUST 1600 PUTS
BUY AUGUST 1575 PUTS Net [...] Read more:August
IRON CONDORS- whats an Iron condor? 2008-07-21 00:35:14 An option strategy used by professional traders and is a purely income generation tool. Iron condor is named such because it carries protection and a guaranteed outcome with high probability of success. The risk/ reward ratio in a IRON CONDOR is not what an investor is looking for but the high probability of success of the outcome. Nothing [...]
Trading for a living 2008-07-16 23:48:08 Trading for a living is an extremely lucrative lifestyle that suits many people. Every trader dreams of living a life where he controls everything around him except the markets which work independently of his her control. The privileges for being a full time trader are numerous. The working hours are great 5-6 hrs a day and [...] Read more:Trading
Index options trading- advantages 2008-08-12 17:24:54 Index options trading is focused on major indexes wholly and not on individual stocks. The same principles can be applied to stock trading but often with different results. Indexes are an aggregate sum of stocks and move with the general trends prevailing in the markets, depending on the economy, oil, wars, and world events.
1. [...]ShareThis Read more:Index
August IWM calendar spread 8/12/08 update 2008-08-12 15:05:23 August 8th , 2008
What a lucky day with all eights in the date! After successfully closing all trades on IWM for profits, here is the new trade with just one week to go. This will gather theta in 4 trading days and if the index stays around 73.5 area should yield some good results, at [...]ShareThis Read more:August
How to Hedge Index options trading- Protecting Profits and Trading Capital 2008-08-08 22:58:52 How to HedgeIndex
options trading- Protecting
Profits and Trading
Capital
Dan Tanner
Its a well known secret for fund and portfolio mangers. Fund Managers regularly spend a portion of their trading portfolio protecting against eventual losses in case the markets drop suddenly causing pain and havoc to their portfolios. Its called portfolio insurance, and its like [...]ShareThis
August NDX trade - update 8/6/2008 2008-08-06 14:24:25 With the market up second day in row NDX at 1900 levels and hitting 50 day moving average above, closed the NDX put spread for 0.05 cents. The theta on the spread was far less than next months at the same strike or above. Will look for new set ups in the making.
Closed NDX [...]ShareThis Read more:August
August NDX trade - update 8/5/2008 2008-08-05 16:19:43 With a strong rally today DOW up 331 and NDX up 64.92, the bull put spread has diminished in value down to 25 cents. Because the markets are in rally mode, completing an IRON CONDOR is risky and and counter productive. The markets will start reaching your short strikes and there is not enough premiums.
Time [...]ShareThis Read more:August
August Trades- Calendar spread QQQQ closed 2008-08-05 10:43:20 The calender spread was closed for net credit of = 0.80 Net profit = 0.06
The spread performed rather poorly in this poor market for last several days. Closed it on strength when NDX is up 39. It could have done better, but might as well employ capital somewhere else. Still a profit here.
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, Calendar
September Trade update 2008-09-05 10:39:28 NDX at 1768, RUT 714 I have closed 70% positions due to market conditions. Its too risky to trade these markets. Raised cash.
Yes there are strategies to rollover trades down and out to next month, but I am not using those. These markets are greatly influenced by poor economy and the bad unemployment reports and a constant parade of [...]ShareThis Read more:September
, Trade
September Trade updates- 2008-08-28 19:23:02 1.NDX IRON CONDOR - 93% probability - Is doing great and is very safe -time decay is taking its toll on the spreads.
2. RUT BULL PUT SPREAD - 97% probability and has more than 30 % profits, and is very safe at the moment. Remember we closed calls side for 0.15 taking profits when RUT dipped ? May [...]ShareThis Read more:September
, Trade
, updates
How much profits to risk? 2008-08-25 22:00:36 How much profits
I should risk?
Lets say you have a trade and your target was to earn $1 gain till expiration. Sometimes things go your way and what happens is you are in an enviable position where profits just fall in line long before expiration day. Many traders will do what is easy, they just [...]ShareThis
September Trade update 2008-08-25 12:35:52 Closed call side of RUT IRON CONDOR. RUT is down 16.31 today. Now the risk is on the downside.
BUY RUT 810 SEPT CALLS SELL RUT 820 SEPT CALLS NET DEBIT= 0.15 Net profit =0.40
Yield =0.4/5= 8 %
Initial Trade
:
SELL RUT 810 SEPT CALLS BUY RUT 820 SEPT CALLS NET CREDIT= $0.55
Iron Condor total margin = 10 /2 Read more:September
September Trades 2008-08-22 13:58:55 All September
trades are listed in the members area. We have 4 income trades two on indexes and 2 on stock options.
1. RUT Index Iron Condor– September expiration 92% probability
2. NDX index iron condor– September expiration 90% probability
3. AAPL bull put spread– 93% probability of success.
4. POT speculative trade- income generation
All these trades are [...]ShareThis
Tax advantages of trading Index options 2008-08-19 00:56:41 SECTION 1256 CONTRACTS
I think we discussed all the other benefits of trading index options in another post. This basic tax advantage is always ignored when it should be the foremost. This post is not an attempt to provide you any tax advise, please consult your tax professionals for further information.
The IRS has a provision [...]ShareThis Read more:Index
Index options trading- advantages 2008-08-12 17:24:54 Index options trading is focused on major indexes wholly and not on individual stocks. The same principles can be applied to stock trading but often with different results. Indexes are an aggregate sum of stocks and move with the general trends prevailing in the markets, depending on the economy, oil, wars, and world events.
1. [...]ShareThis Read more:Index
August IWM calendar spread 8/12/08 update 2008-08-12 15:05:23 August 8th , 2008
What a lucky day with all eights in the date! After successfully closing all trades on IWM for profits, here is the new trade with just one week to go. This will gather theta in 4 trading days and if the index stays around 73.5 area should yield some good results, at [...]ShareThis Read more:August
How to Hedge Index options trading- Protecting Profits and Trading Capital 2008-08-08 22:58:52 How to HedgeIndex
options trading- Protecting
Profits and Trading
Capital
Dan Tanner
Its a well known secret for fund and portfolio mangers. Fund Managers regularly spend a portion of their trading portfolio protecting against eventual losses in case the markets drop suddenly causing pain and havoc to their portfolios. Its called portfolio insurance, and its like [...]ShareThis
Market crisis 3 2008-09-22 13:37:46 Last weeks upheavals were very close to what happened in 1987. LEH bankruptcy, AIG bailout, MER buyout by Bank of America and Morgan Stanley finding itself on the auction block. One after the other dominoes started falling, credit markets including money market funds came very close to a complete shut down. When banks cannot have short [...]ShareThis Read more:Market
Market crisis 2 2008-09-18 17:03:34 Markets exploded to the upside with 400 points push late in the trading day on the news of a Resolution Trust formation to contain bad debt and toxic properties of lenders and a way to end financial crisis.
It should be noted that VIX was trading at 42 prior to this explosive rally and those levels [...]ShareThis Read more:Market
Market crisis 2008-09-18 00:20:40 We are in the midst of a Wall street crisis, noted as worst since 1929. LEH, AIG, WM, MER you name it. Its seems shorts are not done selling till they wipe out every institution on the Street.
This the worst selling I have witnessed in last 2 years. Trading Iron Condors and credit spreads is very [...]ShareThis Read more:Market
New September Trades 2008-09-08 16:27:04 Market soared 289 points, SPX 2.05% and Nasdaq added 25 point all the while NDX still suffered down -5.28? That’s a divergence among the indexes? Why? Since we trade NDX a lot its important we should know these answers. I have been monitoring the markets and watching, AAPL, GOOG getting killed all day long. It [...]ShareThis Read more:September
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