Trader Nate

Official Move and Promotion

2008-07-30T11:19:00.003-04:00

My blog gained the notice of owner and founder of Insanemoney Mojo, my postings here have been sparse lately because I was asked to help him create a community for other options traders to exchange ideas. Over the last several months I've installed an excellent software of forums and help get the community off the ground. Please head over to Insanemoney.com/forums to visit with me and view my progression of posts, education, success and failures.

All my best,
MdrNate

Close: SGR (Shaw Group) +9.70

2008-04-14T10:06:00.002-04:00

My first Iron Condor worked out pretty well. I sized small and took my close this morning.

Opening credit:6.29 Closing debit: -5.93 Profit: 0.36 Percent: 9.70%
Since the spread between my strikes was 10, take that minus the opening credit is my margin at risk. .36 on 3.71 is almost 10%.

MdrNate

Close: BA (Boeing) +22.70%

2008-04-14T10:02:00.002-04:00

Another excellent pick by Insanemoney!

Final results:

Opened for: -1.85 Closed for:2.27 Profit: 0.42 Percent returned: 22.70%

All of this in only 4 days!

MdrNate

Open: GE (General Electric) BLPS

2008-04-14T09:52:00.003-04:00

Major gap down on GE's earnings the other day. On the 11th I entered this bull put spread following the Insanemoney.com trade.

4/11/2008 BLPS Apr 32/30 +.30

MdrNate

Open: ISRG (Intuitive Surgical) Iron Butterfly

2008-04-14T09:45:00.002-04:00

On Apr 10th I followed the Insanemoney.com trade for this Iron Butterfly. This is a negative vega trade. Meaning that we want the volatility to drop and let the fear in the market increase the premiums of our options to make money. The risk graph shows a similar profit chart and breakevens as a straddle will, without as much margin in use and without unlimited risk.

I'm seeing this as a possible replacement trade for our earnings straddles in the coming future.

This is basically an Iron Condor (two vertical spreads, a bull put spread and bear call spread) with the short call and put being at the money and the longs a little further out. The longs are our insurance in case the stock moves so violently that we get kicked in the shin.

4/10/08 May Iron Butterfly BLPS 350/280 & BRCS 350/420 +45.65

MdrNate

Close: USB (US Bank) -6.73%

2008-04-14T09:42:00.002-04:00

So USB had some moment of glory but ultimately lost me about $104.00 all together. I'm not exactly sure if the percentage is accurate because I used some naked puts to defend myself that of course ended up losing more then I would have lost if I just closed out the trade earlier. Live and learn.

MdrNate

Open: HON (Honeywell) Vulture Credit Spread + 5.20%

2008-04-11T11:54:00.003-04:00

I pulled a VultureBoy special yesterday. I saw some huge spreads on the HON calls and entered a 60/62.5 May BRCS. I got a credit of .77 and am closing it for .68

So this returned 5% in 1 day!

MdrNate

Open: AAPL (Apple) Iron Condor

2008-04-09T19:36:00.002-04:00

Yet another insanemoney pick, if it ain't broken, don't fix it eh?

Here's my entry today: 4/9/08 Iron Condor 160/165 BRCS and 140/135 BLPS +1.05

MdrNate

Open: RUT (Russell 2000) Iron Condor

2008-04-09T19:31:00.002-04:00

Another insanemoney.com pick.

Go take a look at Mojo's explaination.

I got the 4/9/08 Iron Condor 750/760 BRCS and 640/630 BLPS for a credit of +3.35

MdrNate

Close: RUT (Russell 2000) +10.56%

2008-04-08T14:37:00.002-04:00

In:1.67 out: -0.5 profit: 1.17 percent: 10.56% since there was a $10 spread.

MdrNate

Final: IYR Put Calendar +6%

2008-04-08T14:34:00.001-04:00

I opened a put calendar for May June at 69 and immediately noticed the open interest was very low so I made my best effort to get out.

I opened for a debit of 1.10 and closed for a credit of 1.17. So I made 7 cents.

That was a quick 6%.

MdrNate

Open: BA (Boeing) Put Calendar

2008-04-08T14:27:00.001-04:00

This afternoon I got filled on a put calendar short May 75puts and long Aug 75 puts.

The debit I paid was -1.95.

MdrNate

Close: ORCL (Oracle) +3.78

2008-04-04T09:29:00.001-04:00

I let this go a little longer the the rest of the group and here are the results:

In: 1.92 Out: -0.88 Profit: 1.04 Percent: 3.78%

MdrNate

Close: LVS (Las Vegas Sands) +38.78%

2008-04-02T08:13:00.002-04:00

This started out as a double calendar that I messed up. The other calendar suffered a 50% loss on more contracts. I was able to make up some of the loss with this leg:

In: -2.63 Out: 3.65 Profit: 1.02 Percent: 38.78%

MdrNate

Close: WSM (Williams Sonoma Inc)

2008-04-02T08:10:00.001-04:00

Great trade recommended bu Vulture Boy on the Insanemoney.com forums!

In: 3.52 Out: -2.3 Profit: 1.22 Percent: 8.32%

We weren't in this trade for very long. Excellent returns!

Thanks Vulture Boy!

MdrNate

Close: POT (Potash Corp) +10.56%

2008-04-02T08:04:00.001-04:00

I wasn't sure this one would be in the green shortly after putting it on. Part of the magic in trading is knowing when to do something and when to leave it alone.

In: 1.59 Out: -1.23 Profit: 0.36 Percent: 10.56%

MdrNate

Close: SHLD (Sears Holdings) -8.17%

2008-04-02T08:02:00.003-04:00

I'm pretty happy with this loss. At one point the loss was in the -30% range and using my (yah, I'm claiming it :) nifty diagonal into calendar roll and the subsequent movement, we worked up pretty high an back towards break even.

In: -8.93 Out: 8.2 Loss: -0.73 Percent: -8.17%

MdrNate

Close: TGT (Target) 47.5 Calendar +46.59%

2008-04-02T07:59:00.003-04:00

This is a great example of a double calendar working for you. The bottom leg lost money at the end, but it protected me from downward swings during the life of the trade. If I can better predict the movement of the stock I can start closing them out at their most profitable points. Until then I have to suffer with a combined profit of +46.59% :) I can live with that.

In: -0.88 Out: 0.84 Loss: -0.04 Percent: -4.55%
In: -0.88 Out: 1.33 Profit: 0.45 Percent: 51.14%

MdrNate

Close: MO (Altria Group) -22.52%

2008-04-02T07:55:00.003-04:00

The spin off did not help this position. I closed it as soon as I could.

70 Calendar: In: -1.13 Out: 0.97 Loss: -0.16 Percent: -14.16%
75 Calendar: In: -0.68 Out: 0.47 Loss: -0.21 Percent: -30.88%

MdrNate

Close: PAYX (Paychex) +0.26%

2008-04-01T16:45:00.002-04:00

This straddle started out good, then continues to move towards the edge of my sweetspot.

I closed it today for a modest gain.
In: 2.9 Out:-2.83 Profit:0.07 Percent:0.26%

MdrNate

Adjust: UPS - Roll back months forward

2008-04-01T16:38:00.002-04:00

I rolled both my long legs on this double calendar forward to reduce my vega exposure.

Rolled Jul 75 to May 75 for +1.05, new cost basis: -.70
Rolled Jul 70 to May 70 for +.85, new cost basis: -1.08

MdrNate

Close: S (Sprint) +20.59%

2008-04-01T16:36:00.001-04:00

Another close yesterday:

In: 0.32 Out: -0.18 Profit:0.14 Percent: +20.59%

Nice one!

MdrNate

Close: IWM (Russell Mini) +4.57%

2008-04-01T16:33:00.002-04:00

Closed this trade down today at the recommendation of Insanemoney.com
IWM In: 2.19 Out: -1.23 Profit: 0.96 Percent: +4.57%

MdrNate

Close: KSS (Kohls) +.6%

2008-03-28T09:37:00.002-04:00

I'm just thrilled that after this morning's gap down I was able to get a fill for -1.69. Since I got in for +1.72 I earned just an itty bitty return on this.

MdrNate

Open: S (Sprint) Bull Put Spread

2008-03-28T09:31:00.001-04:00

This is a speculative trade I saw on Insanemoney.com. I followed suit and entered this speculative trade.

3/27/08 BLPS Apr 5/6 +.32

MdrNate