Friday, December 17, 2010

12/17/2010, OE day trading

Learned more about short spread, so I decided to try it again on the OE day, as I expect the TV would drop harder after OE. I also learned that one should trade spread with 20 to 40 days before OE, so my first RIMM spread was not really a good trade by book, although it did win.

V and Master dropped a lot in previous two days due to the congress bill to limit their fee. V is approaching its previous low at $65, so I sold a bullish put spread at 65/62.5 for $700, break even 64; winning probabily 63%, ROR is 38%, V closed at 66.9, -0.29; the option loses $2.5 today.

Also RIG is approaching support at 67, did a bullish put spread at 67.5/65 for 0.74 credit, break even at 66.76; winning probability is 63.3%; ROR is 42%, RIG closed at 69.34, with 0.03 gain. the Option hard a gain of $15 today.

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