TODAY I ENTERED A TRADE FOR MY WIFE AND I (THATS WHY I MENTION TRADES  AS “WE” AT TIMES) . THE TRADE WAS A CONDOR I PERFORMED ON MY CELLPHONE AND THEREFORE NOT ABLE TO COPY AND PASTE THE DETAILS.

I DID HOWEVER POST ON TWITTER MY GTC ORDER I PLACED , SO THAT MY FOLLOWERS WOULD KNOW TO CONDOR COMPLETE THEIR EXISTING  NDX  BULL PUT PLAY.

WITHOUT FOLLOWING ME, YOU MISSED OUT ON A VALUABLE PLAY. THIS BEAR CALL SPREAD WHICH CONDOR COMPLETED OUR ROLLED DEC. 2450/25 BULL PUT SHOULD LEAD TO A VERY NICE PLAY. —

THE DETAILS OF OUR PLAY WAS AS FOLLOWS—–

WE SOLD 2 CONTRACTS DEC22 2750 CALLS

AND WE BOUGHT 2 CONTRACTS 2775 CALLS

THE TOTAL CREDIT WAS 2.50

*TRANSACTION COPIED AND PASTED HERE AT LATER TIME* *BELOW*

11/23/12 Sold to Open -2 NDX Call

Ndx Dec 22 2012 2750.00 Call
NDX Dec 22 2012 2750.00 Call $5.85 $1.30 $0.06 $1,168.64
11/23/12 Bought to Open 2 NDX Call

Ndx Dec 22 2012 2775.00 Call
NDX Dec 22 2012 2775.00 Call $3.35 $6.25 $0.06 -$676.31

THIS WAS A FAIRLY SAFE ATTEMPT AT A PLAY, IF THINGS GO WRONG WE WILL ADJUST EITHER THE EXISTING BULL PUT OR NEW BEAR CALL SPREAD.

ALTHOUGH NO PROMISES  WILL BE MADE, IF THE MARKETS TAKE OFF TO RETEST THE HIGHS SET A MONTH AGO, WE WILL HAVE AMPLE OPPORTUNITY TO ROLL THE BEAR CALL SIDE IF THE MARKETS GO AGAINST. I WOULD HOWEVER, LIKE TO GIVE THANKS TO @BOOKINGALPHA FOR HIS BLOG POST http://www.bookingalpha.com/site/blog/35-blog/1237-monster-rally-monday THAT BLOG POST HELPED ME TO POSTPONE CONDORING THIS PLAY UNTIL FRIDAY. BOOKINGALPHA WAS PRETTY SPOT ON AND ANYONE WHO ISNT TRADING WITH HIM IS SORELY MISTAKEN, HIS SITE IS HERE http://www.bookingalpha.com/idevaffiliate/idevaffiliate.php?id=105

IF ALL GOES WELL NOW SINCE A MONTH AGO WE WILL HAVE COLLECTED 2.65 PREVIOUSLY, PAID .50 TO ROLL TO DEC ON THE BULL PUT, AND NOW RECEIVED 2.50 FOR THE BEAR CALL MAKES IT TOTAL PREMIUMS 2.65 -.50 +2.50= 4.65 THATS NOT A BAD PREMIUM MY FRIENDS FOR A MONTH OR SO WORK……..

************************************************************************************************************************

IN ORDER TO MITIGATE RISK WE EXECUTED A ROLL DOWN AND OUT TO DECEMBER 2450-25 BULL PUT AT .50 DEBIT. THIS ROLL DOWN TAKES US LOWER 100 POINTS INTO SAFETY FROM OUR CURRENT 2550/25 NOV SPREAD WHICH IS A GREAT THING IN THIS POSITION WE ARE IN.

WE DECIDED TO PULL THIS ROLL WHEN THE MARKET STARTED TO REVERSE COURSE BACK DOWN TODAY. IF CONTINUED DOWN WE WOULD BE EXPOSED TO EXTREME GAMMA RISK.

OUR NET TOTAL CREDIT TAKEN IN ON THE TRADE IS 2.65-.50 ROLL COST FOR CREDIT OF =2.15 NOW STILLTO BE MADE UPON DEC EXPIRY OR CLOSE EARLIER IF POSSIBLE.

I HATE WHEN HAVING TO ROLL BUT THIS WAS THE RIGHT THING TO DO AND SHOULD HAVE BEEN ROLLED A FEW DAYS BACK, BUT I CAN BE STUBBORN AT TIMES. ITS A DETRIMENTAL HABIT I NEED TO WORK ON BREAKING.

Order Details

You have entered a free form.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Close 2 NDX Put NDX Nov 17 2012 2550.00 Put Debit 0.50 Day Order
Leg 2 Sell to Close 2 NDX Put NDX Nov 17 2012 2525.00 Put
Leg 3 Sell to Open 2 NDX Put NDX Dec 22 2012 2450.00 Put
Leg 4 Buy to Open 2 NDX Put NDX Dec 22 2012 2425.00 Put
Quote NDX   2,576.36   -6.41 Bid 0.00 Ask 0.00 Volume 0
NDX NOV 17 2012 2550 PUT
NDX NOV 17 2012 2525 PUT
NDX DEC 22 2012 2450 PUT
NDX DEC 22 2012 2425 PUT
Bid 7.90 3.60 20.80 16.70
Ask 9.00 4.20 21.60 17.50
Last 8.40 3.85 21.30 17.25
Change -0.42 [-4.76%] -0.65 [-14.44%] -0.10 [-0.47%] 0.25 [1.47%]
Volume 3,362 1,823 28 18
Delta -0.29 -0.15 -0.21 -0.18
Open Int 5,859 4,831 1,385 367
Desc NDX Nov 17 2012 2550.00 Put NDX Nov 17 2012 2525.00 Put NDX Dec 22 2012 2450.00 Put NDX Dec 22 2012 2425.00 Put
Net Quote
Bid
1.20credit
Mid
0.45debit
Ask (natural)
2.10debit

***********************************************************************

10/19/2012 12:48PM EST

WITH GOOG IS STILL SHITTING THE BED AND DRAGGING TECHS DOWN IN SYMPATHY PLAYS WITH GOOG. PLEASE REMEMBER WE HAVE BEEN CHANNEL BOUNCING BETWEEN THE BOLLINGER BANDS THE NASDAQ 100 OR THE NDX AND SHOULD CONTINUE THAT PATTERN.

AS OF TODAY WE ARE RIDING EXTREMELY TIGHT ON THE LOWER BOLLINGER BAND.  GRAPH BELOW:

undefined .NDX

*CHART DELETED AFTERWARDS, DIDNT POST RIGHT*

I AM BY NO MEANS SAYING GO LONG AAPL, GOOG, OR ANY OTHER TECHS HERE, BUT THE ODDS ARE WITH US IN THIS PLAY STILL. I SAY THAT BECAUSE THIS IS THE REASON WE CHOSE TO TO OPEN THE STRIKES IN THE PLAY AT THE PREVIOUS LOWER BOLLINGER BAND LEVEL IN AUG12 AROUND THE 2550 LEVEL.

SO, IN CONCLUSION TECHNICALS POINT TO A RELIEF BOUNCE NEXT WEEK, BUT BEWARE, AS WE COULD SEE FURTHER LOSSES IN THE MARKETS OVER THE NEXT FEW WEEKS AFTER THE BOUNCE AS A RESULT OF ALL THE RUN UP WE HAVE HAD OVER THE LAST FEW MONTHS.

WE ARE STAYING IN THIS NDX TRADE FOR NOW, BASED ON THE TECHNICALS POINTING TO A RELIEF BOUNCE.

***********************************************************************

10/10/12 12:59 EST

THE TRADE HAS EXECUTED IN OUR ACCOUNT.

***********************************************************************

10/10/12 12:19 EST

WE HAVE GONE FISHING WITH OUR ORDER IN THIS TODAY.

NDX IS NEARING ITS LOWER BOLLINGER BAND LATELY. THAT IS A LEVEL OF RESISTANCE TO PLAY INTO FOR BULL PUT CREDIT SPREADS. BUT SEEING AS MARKETS TAKE THE ELEVATOR DOWN AND STAIR STEPS UP. WE HAVE PLACED THIS ORDER ALL THE WAY BACK TO THE NEXT LOWEST BOLLINGER BAND LEVEL OF NEAR 2550 LEVEL SET BACK IN AUGUST ’12.

*CHART DELETED AFTERWARDS, DIDNT POST RIGHT*

BECAUSE WE SET IT AT THAT NEXT LOWER LEVEL, IT SHOULD GIVE US QUITE A BIT OF  BREATHING ROOM, SHOULD THE MARKET EXPERIENCE A SIZEABLE CORRECTION BETWEEN NOW AND NOVEMBER EXPIRY.

WE PLAN ON CLOSING THIS TRADE AT .30 OR SO DEBIT ASAP LIKE WE DID ON OUR PREVIOUS NDX BEAR CALL CREDIT SPREAD LAST MONTH.

WE MAY ALSO COMPLETE THIS PLAY BY AN IRON CONDOR AS WELL USING BEAR CALL SPREADS LATER ON.

PS THE QUOTE FOR THE NDX IS CURRENTLY WRONG AS TRADEKING WAS EXPERIENCING QUOTE PROBLEMS.

Order Details

You have entered a spread.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 2 NDX Put NDX Nov 17 2012 2525.00 Put Credit 2.65 Day Order
Leg 2 Sell to Open 2 NDX Put NDX Nov 17 2012 2550.00 Put Credit 2.65 Day Order
Quote NDX   2,797.08   N/A Bid 0.00 Ask 0.00 Volume 0
NDX NOV 17 2012 2525 PUT
NDX NOV 17 2012 2550 PUT
Bid 11.50 14.00
Ask 12.10 14.60
Last 12.40 14.80
Change 0.80 [6.90%] 1.15 [8.42%]
Volume 293 284
Delta -0.12 -0.14
Open Int 936 2,019
Desc NDX Nov 17 2012 2525.00 Put NDX Nov 17 2012 2550.00 Put
Net Quote
Bid (natural)
1.90credit
Mid
2.50credit
Ask
3.10credit
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