Options-trader

The price of the share is about $81.30. I have sold all contracts of January'13 77.5 CALL - $3.90 and all contracts of January'13 72.5 CALL - $8.80. This funds cover all the total expenses to the combination.

Yesterday NOVEMBER'12 87.5 CALL was depreciated. The combination loss is $6.914 or 15.36%.

Yesterday the share fell to $72. At this moment the combination had huge disbalance of premiums of calls and puts. So i have bought 47 contracts January'13 72.5 CALL - $3.10.

Yesterday i have closed the combination: bought short 32 contracts of NOVEMBER'12 82.5 PUT - $0.25, sold 42 contracts of NOVEMBER'12 92.5 PUT - $7.40, sold 27 contracts of NOVEMBER'12 82.5 CALL - $2.91. NOVEMBER'12 87.5 CALL i leave it for a while.

The price of the share is about $76.60. I have sold all contracts of NOVEMBER'12 87.5 PUT - $10.80 and have bought 47 contracts of January'13 77.5 PUT - $4.25 and 47 contracts of January'13 77.5 CALL - $3.05.

The price of the share is near $83. Now the premiums of positions of the combination are: NOVEMBER'12 92.5 CALL - $0.10, NOVEMBER'12 92.5 PUT - $9.70, NOVEMBER'12 87.5 CALL - $0.56, short NOVEMBER'12 82.5 PUT - $1.95. The combination has huge disbalance, it means that in the case of growth share, the loss of the combination will increase. So i have bought 10 contracts of short NOVEMBER'12 82.5 PUT at $1.95 and buy 27 contracts of NOVEMBER'12 82.5 CALL at $2.43. The expenses was increased by $8,025. Total expenses are $44.565.

The price of the share is about $80.70. The combination has disbalance of premiums of calls and put: NOVEMBER'12 87.5 CALL - $0.38; NOVEMBER'12 87.5 PUT - $6.95; NOVEMBER'12 82.5 CALL - $1.68. So i bought 47 contracts of DECEMBER'12 82.5 CALL ($2.55). Total expenses to the combination were increased to $60,865.

At opening the price of the share is about $83. To balance the combination i have bought 47 contracts of NOVEMBER'12 82.5 CALL ($3.40). Total expenses to the combination were increased to $48,880.

At opening the combination had critical disbalance put and calls. So i have opened short position - 42 contracts of NOVEMBER'12 82.5 PUT ($2.95). Total expenses to the combination were decreased to $36,540.

Today the share price fell to $87.05. When the price share was $88-88.2 premiums of the combination were: NOVEMBER'12 92.5 CALL - $1.80 and NOVEMBER'12 92.5 PUT - $6.60. Disbalance of Calls and Puts was critical, so i have bought 42 contracts of NOVEMBER'12 87.5 CALL ($3.90). Total expenses to the combination increased to $48,930.

I propose you to observe the process of my next option combination conducting. Size of investment for one combination is 50,000$. For purchase straddle i put no more than 2/3 total amount of investment. The remained sum is necessary for management of a combination.Today i opened long straddle of CAT (Caterpillar Inc.). It has been bought 42 contracts of NOVEMBER'12 92.5 CALL ($3.15 ) and 42 contracts of NOVEMBER'12 92.5 PUT ($4.60). In purchase it has been spent: 7.75*100*42=$32.550. Further i will conduct the combination.

I propose you to observe the process of my next option combination conducting. Size of investment for one combination is 50,000$. For purchase straddle i put no more than 2/3 total amount of investment. The remained sum is necessary for management of a combination. Today i opened long straddle of OXY (Occidental Petroleum Corporation). It has been bought 47 contracts of NOVEMBER'12 87.5 CALL ($3.19) and 47 contracts of NOVEMBER'12 87.5 PUT ($3.81). In purchase it has been spent: 7.0*100*47=$32,900. Further i will conduct the combination.

The share is near $94. It is time to close the combination. I do it at bid price: NOVEMBER'12 85 CALL - $9.90, NOVEMBER'12 90 PUT - $2.72. Total profit is: (($9,90+$2,72)-$9,95)*35*100=$9,345 or 18.7%.

The share is near $93. It is time to close the combination. I do it at bid price: OCTOBER'12 85 CALL - $9.05, OCTOBER'12 90 PUT - $1.56. Total profit is: (($9,05+$1,56)-$6,32)*46*100=$19,734 or 39.47%.

The share is a little over $90. Premiums (average) of the positions of the combination are: OCTOBER'12 90 PUT - $2.60, OCTOBER'12 90 CALL - $2.80, OCTOBER'12 85 CALL - $6.05. I have close all contracts of OCTOBER'12 90 CALL - $2.80. Expences per unit to combination was reduced to $6.32.