My Second Option Combination

[Options-trader 10]

I propose you to observe the process of my second option combination conducting.

Size of investment - 50,000$. For purchase straddle i put no more than 2/3 total amount of investment.

The sum rest is necessary for management of a combination.

Today i opened long straddle of FSLR (First Solar, Inc).

It has been bought 44 contracts of june put 27 (3.90$) and 44 contracts of june call 27 (3.50$).

In purchase it has been spent: 7.40*100*44=32.560$

Further i will conduct the combination.

[Options-trader 10]

I propose you to observe the process of my second option combination conducting.

Size of investment - 50,000$. For purchase straddle i put no more than 2/3 total amount of investment.

The sum rest is necessary for management of a combination.

Today i opened long straddle of FSLR (First Solar, Inc).

It has been bought 44 contracts of june put 27 (3.90$) and 44 contracts of june call 27 (3.50$).

In purchase it has been spent: 7.40*100*44=32.560$

Further i will conduct the combination.

 

Now the price of the share is about 23.40$. It is necessary to fix profit of june put 27. So i bought 44 contracts of may call 23 (2.72$)

In purshase of third position it has been spent: 2.72*100*44=11.968$. This is the maximum of investment to the combination.

[Options-trader 10]

Now the price of the share is about 23.40$. It is necessary to fix profit of june put 27. So i bought 44 contracts of may call 23 (2.72$)

In purshase of third position it has been spent: 2.72*100*44=11.968$. This is the maximum of investment to the combination.

Today i have sold 44 contracts of JUNE'12 27 PUT (8.65$). Also i have bought 44 contracts of straddle: JUNE'12 20 PUT (3.10$) and JUNE'12 20 CALL (2.20$)

[Options-trader 10]

The price of share is just below $17, the combination has disbalance of calls and puts, so i have opened 44 contracts of JUNE'12 17 CALL (1.85$).

[Options-trader 10]

Ten minutes before closing the trading session i have sold 8 contracts of JUNE'12 20 PUT ($6.50). Immediately after this i bought 38 contracts of JUNE'12 14 CALL at ask price $1.37.

[mslk 10]

Ten minutes before closing the trading session i have sold 8 contracts of JUNE'12 20 PUT ($6.50). Immediately after this i bought 38 contracts of JUNE'12 14 CALL at ask price $1.37.

 

is this all on FSLR?

[Options-trader 10]

is this all on FSLR?

YES, this is all on FSLR.

[Options-trader 10]

Ten minutes before closing the trading session i have sold 8 contracts of JUNE'12 20 PUT ($6.50). Immediately after this i bought 38 contracts of JUNE'12 14 CALL at ask price $1.37.

Today i have sold 38 contracts of JUNE'12 20 PUT (6,55$). All contracts of CALLS remain.

[Options-trader 10]

15-th of June the calls has expired. The loss of combination is $14.314 or 28.63%.