Monday, December 12, 2005
Option trades
I haven't discussed this much or maybe not even at all since starting this blog but I taught myself to trade options many years ago which is how I have supported myself while learning to daytrade. I haven't posted my option trades on here ever but I have been thinking of starting to do so under separate post like this one. I am a net option seller and I collect time (theta) decay as a rule. As I get better in directional trading I may do some buy side trades but those will be rare for now.
I do credit spreads both vertical and horizontal (called calendar spreads, since they span time (months) instead of strike prices.
My first posted trade was a vertical credit spread for Jan 06 on the big SP500 futures contract (march contract to be specific).
I sold Jan 1330's and bought 1400's for a net spread of about 70 as I remember (I did this trade last week in case you were wondering but it is still a good trade this week). That's about it for now. There will be more to come.
Trader X.
I do credit spreads both vertical and horizontal (called calendar spreads, since they span time (months) instead of strike prices.
My first posted trade was a vertical credit spread for Jan 06 on the big SP500 futures contract (march contract to be specific).
I sold Jan 1330's and bought 1400's for a net spread of about 70 as I remember (I did this trade last week in case you were wondering but it is still a good trade this week). That's about it for now. There will be more to come.
Trader X.
