Friday, August 17, 2012

Back after a hiatus

I had to take some time off to work on my house and take care of my son.

I noticed that the daily chart for Facebook (FB) showed both a bullish gap and a bullish divergence in the MACD. The implied volatility is also high, meaning that there is a lot of premium available for option sellers.
I sold 2 $19 weekly puts, expiring 8/24.

Here is the chart:

I sold the puts for 0.55 the price range was 0.30 to 0.70.
So my entry score is:
(0.55 - 0.30)/(0.70 - 0.30) = 62%

Wednesday, August 1, 2012


Oops. I should have stayed away today. The market was very news driven and insisted on going down, even though it knew I was long all day.

Transactions:
Buy     1       1380.75 8/1/2012  6:08:34 AM Entry      1L
Buy     1       1378.5  8/1/2012  6:35:36 AM Entry      2L
Buy     1       1377.5  8/1/2012  6:40:25 AM Entry      3L
Sell    1       1378.5  8/1/2012  7:05:34 AM Exit       2L
Buy     1       1375.25 8/1/2012  7:13:37 AM Entry      3L
Buy     1       1375.25 8/1/2012  7:13:37 AM Entry      4L
Sell    1       1375.75 8/1/2012  7:27:20 AM Exit       3L
Sell    1       1377.75 8/1/2012  7:36:55 AM Exit       2L
Buy     1       1377.75 8/1/2012  8:04:27 AM Entry      3L
Buy     1       1376.5  8/1/2012  8:12:04 AM Entry      4L
Sell    1       1378.25 8/1/2012 10:45:17 AM Exit       3L
Buy     1       1375    8/1/2012 11:00:37 AM Entry      4L
Sell    1       1373.75 8/1/2012 12:05:16 PM Exit       3L
Sell    1       1374.75 8/1/2012 12:25:43 PM Exit       2L
Sell    1       1376.75 8/1/2012 12:29:00 PM Exit       1L
Sell    1       1373.25 8/1/2012 12:49:38 PM Exit       -

Loss for today:
7.75 points