Thursday, March 15, 2012

New Trade Buy iron condor CAT

Trying out a new idea from Klaiman/O'Brien/Augen/others about long iron condor/short butterflies to take advantage of near term moves.  With negative theta/positive vega, these positions tend to offset short iron condors which have positive theta/negative vega.

CAT Mar4 -105p/+110p/+115c/-120c for 1.20 debit.   Looking for 3-4 point move or volatility increase over the next 5 trading days. 

Target 25% / stop loss 20%

New earnings trade ORCL

From Klaiman

ORCL earnings trade - reports Tuesday 3/20 A

Opened Mar4 30 straddle at 1.71.  Vol at 48 / back months are about 35.  May have entered a bit late, but hoping for additional vol increase.

Target 1.90 - exit before Tuesday close. 

Calendar trade MCD

From Options Genius

MCD Apr/Jun 100 calendar.  Trading between 96 & 102 since November.  Low vol environment.  April vol 16.8/ Jun 18.4.  

Profit 25%/stop loss 30%

3/16 - entered 2 call calendars at .98