CLOSE: AAPL 145/150 Short Put Vertical -80%

I did not roll out of this trade. If you did roll, you are sitting on a nice profit right now.   I took the Max Loss of 400.

Lessons paid for on this trade:

• Cost of failing to take action on preset exit rules.
• How TOS Calculates P/L on Verticals
• Cost of Greed and Fear.

I failed to exit this trade prior to earnings with 80% profit. “cause AAPL always blows out earnings and won’t be too effected by this bearish market. Besides in doing my expectancy calculations for last years trades it was better to hold for max loss then attempt to leg out emotionally.” (Failure to take action on trading plan/ Greed)

I failed to exit after trend was clearly broken for a smaller loss.  “Cause it could come back and I don’t want to take this loss.” (Greed/Fear both)

How TOS calculates P/L on Verticals  Current Mark Price – Credit  (duh!)  FYI though don’t bother looking at the P/L % for Spreads. Its too confusing. Better to do it manually.

CLOSE CROX PUT DIAG

Closed CROX Put DIAG for +4.45

CLOSE: UAUA JUN08 Put Calendar +157%

Closed UAUA trade today for +2.95

BTC FEB08 35 Put 4.20

STO JUN08 35 Put 7.15

Closed on possible decrease in volatility after earning.

Total credits = $7.55

Previous Cost basis = -1.15
ROI: 157% ( Credit – Cost Basis = Profit [2.95-1.15 = 1.80] Profit/Risk = ROI [1.80/1.15 = 1.565] )

Update: Roll UAUA JUN08 Put Calendar

I rolled UAUA trade today to FEB08 +1.10

BTC JAN08 35 Put -5.70

STO FEB08 35 Put +6.80

New Cost basis is 1.15 (2.25 – 1.10 = 1.15)

ROI is 96%

At risk to be put the stock at $35

Update: UAUA JUN08 Calendar Put Spread

UAUA closed above 35.00 today so I let my DEC07 position expire worthless. I placed an order after hours to sell the JAN08 35 Puts for $3.50 (chart says 3.40 however I could catch a down move in the am hours. The bid is 3.40 and the Ask is 3.60 so 3.50 is mid).

New potential ROI is 61%

EXITS:
1) Close below 35.00 on JAN expiry Roll to FEB08
2) OR Close below 35.00 on JAN expiry get PUT the stock @ $35 (100 shares per contract) and continue to sell against the JUN08 Puts.
3) Close above 35.00 expire worthless and sell FEB08 35 Puts
4) Buy back at .05 if profitable and starting to show weakness or Earning pending.

my new cost basis is -2.25

Filled at 3.50 at open.

Open: UAUA Jun 35 Put Calendar

I bought the JUN08 35 Puts for 7.23 and Sold the DEC07 35 Puts for 1.48 Total cost basis is 5.75

Exits:
1) Close below 35.00 on DEC expiry Roll to JAN08
2) OR Close below 35.00 on DEC expiry get PUT the stock @ $35 (100 shares per contract) and continue to sell against the JUN08 Puts.
3) Close above 35.00 Expire worthless and sell JAN08 35 Puts

I *cough* copied this trade from my trading buddy Mojo. Thanks! There is always power in numbers. I agreed with his analysis and above is my charting.