Folks, we bought June/April calendar. Then as the stock went below $90 yesterday, we bought back those April $95 calls for $0.29. Now, as the stock is ripping higher, I am selling those calls again for $0.68. If it goes below $90 again, I will buy those calls back again for $0.30 or lower. That's how you trade around your position.
The stock is doing lower highs and higher highs for several weeks. The target is still $95. If we get there, I would close the entire calendar. Meanwhile, trade what the market is giving you.
Booyah!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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