Looks like a good event being sponsored by our friends over at Live Vol Pro. I wish I could be in Chicago for this! I hear there is going to be a webinar.
Showing posts with label livevolpro. Show all posts
Showing posts with label livevolpro. Show all posts
Tuesday, May 24, 2011
Wednesday, March 16, 2011
What a day what a day!
"Cup check!" A favorite juvenile mantra of mine back in the Little League days echoed in my head today. This was not the sort of day that you forget to wear your cup. This movement is bringing a little bit of life into the options markets I trade so it is exciting, but I am on my toes for sure. In other words, I didn't get nailed today and I was glad to have my cup on. How about tomorrow? What then? Check us out after the break!
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| Who does this? Morally reprehensible. But pretty funny. |
Thursday, February 24, 2011
Trade of the Day: XLE 74/71 1x2 put spread for $0.05
Looking for ways to spend a nickel? With oil a hot topic in the headlines, a trader today appears to have bought a 1X2 put spread in the XLE March 74/71 series for just a 5 cent debit.
The usually quiet put market in XLE saw 7k of the 74 puts trade against 14k of the 71 puts on our old friend PSEX. Kind of interesting, given that the average daily volume in the puts is usually about 29k contracts. Not an amateur trade at all, given the margin requirements of a 1X2 in a spendy underlying. The trade captures about 3 pts of vol edge according the LivevolPro skew chart below, but clearly what the trader is most interested in is a move to $71 even.
At this point, the trade yields the max $2.95 gain per spread, or a little over $2mm for this trader. Here's a look at P&L at expiration from TOS.
It certainly seems possible, for XLE to retrace some of its recent solid gains based on the chart below. I drew in the green lines to show the strike prices of the puts in the trade.
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.
The usually quiet put market in XLE saw 7k of the 74 puts trade against 14k of the 71 puts on our old friend PSEX. Kind of interesting, given that the average daily volume in the puts is usually about 29k contracts. Not an amateur trade at all, given the margin requirements of a 1X2 in a spendy underlying. The trade captures about 3 pts of vol edge according the LivevolPro skew chart below, but clearly what the trader is most interested in is a move to $71 even.
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| Courtesy LIVEVOLPRO.com |
At this point, the trade yields the max $2.95 gain per spread, or a little over $2mm for this trader. Here's a look at P&L at expiration from TOS.
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| Courtesy Think or Swim |
It certainly seems possible, for XLE to retrace some of its recent solid gains based on the chart below. I drew in the green lines to show the strike prices of the puts in the trade.
 |
| Courtesy LIVEVOLPRO.com |
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.
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