Closed TLT @ .11 - .33 profit = $99

Closed TLT Trade @ 75% of max profit, not providing enough delta hedge anymore for overall portfolio.

sell -3 Vertical SPY WEEKLY Jan4 12 132/130 put @.85

Trade:

Closing other 1/2 of weekly trade.

Close 1/2 of SPY Weekly @ .97 = Profit .37 (overnight +50%)

Trade:

• Closing half of trade at gap down opening
• Sell -4 Vertical SPY Jan4 12 132/130 @ .97
• Comm: 6.00

SPY Weekly Vertical +7 @ .60 Jan4 12 132/130 put

Trade:

• Max Profit $980
• Max Loss $438.50
• SPY RSI indicator above 95 

1/19/2012 +4 BUTTERFLY EEM FEB12 42/40/38 PUT @ .41

TRADE:

• +4 BUTTERFLY EEM FEB12 42/40/38 PUT @ .41
• Max Profit: $636.00
• Max Loss: $164+ $ 20 Comm $184.00

FUTURES 1/24/2012

Short - 1306.25
Closed 1308.00
Profit - $87.50

Futures 1/23/2012

Short - 1306.50
Closed 1307.00
Profit  -$25

Short -1313.50
Closed 1312.25
Profit  +62.50

Short -1314.25
Closed 1317.00
Profit - $137.50

Short - 1317.00
Closed 1315.00
Profit + $100.00

Long 1314.00
Closed 1312.00
Profit - $100.00

Short -1310
Closed 1311.00
Profit -$50.00
-------

P/L Day = -150.00
Commisions = -42.00
Adjusted P/L Day = -192.00

ES futures +2 = +100

Short 1309
Close 1307
Profit 100

Es futures +1 = .50

Futures trade on break:
Short 1308.50
Closed 1307.50
+$50

Premarket Futures Trades

1/19/2012	-	/ES	1307.50	1307.25	+.25	7.00	+5.50
1/19/2012	-	/ES	1309.00	1307.00	+2	7.00	+93.00

Why I really like my FXE (Euro) trade now

I put on a bullish credit spread on FXE on January 12, 2012. I know there is a lot of scare out there in regards to the Euro, but when isn't there scare about something in the news.  FXE is at the low end of a yearly range and can go even lower. However, I am a contrarian option trader and felt like a defined risk strategy to the upside is a decent play here.  However, after monday's S&P downgrade, I'm even more confident with this position.

 Here is another reason why news is about misinformation that is meant to confuse the retail trader.  Newer traders would look at the downgrade and feel it's time to short it on such information. However, ANALyst views seem to me to be contrarian indicators.

Remember on August 5, 2011 when S&P Downgraded USA's credit rating since then SPY has made over a +10% move:

See Oval Below

Also note the steep selling before the downgrade came. Is that fear? Or did some know it was a sure thing? I dunno?

Below is where the FXE is and the oval is where they downgraded it a few days ago.  Keep an eye on this chart to see where it goes in the next few months.

CHK +4 Vertical Feb12 21/22 +.42

Trade:

• Max Loss: 164.00
• Max Profit: 236.00
• May be at end of down trend.

Idea from: TastyTrade

Futures Trades + 2.5 = +$125

1/18/2012:

Trades:

• 6:16:35 am: +1287.25 / 6:29:05am -1288.00 = +.75 (rsi play)
• 7:22:57 am +1297.50 / 7:28:26am - 1297.25 = -.25 (squeeze play)
• 7:31:07 am -1297.50 /  8:19:58am - 1295.50 = +2.0 (rsi Play)

1st trade: Wanted to take some profit because options portfolio down (Out too soon before 10 point move up.)

2nd trade: Was using a 5 min squeeze play which had me go long at the top, once in it, i didn't like it so I got back out for minimal loss.

3rd Trade: 5 min and 15 min rsi overbought and seemed to be coming off resistance at 1297.50. It came down to 1295.50 at 7:50 and started to hang around break even point. Once it came back down to 1295.50 I got out figuring it would bounce again from there which seems to be happening. See Below:

*still working on patience

/es Trade +1.75

5:27 AM: -1 @ 1300
5:47 AM: +1 @ 1298.25

+$87.50

End Of Week Information

End Of Week Data

Current Positions and Performance

Positions Beta Weighted with SPY

Notes of the week:
Be patient, with new spreads on. You're mainly selling time decay which means you have to wait for that decay to take effect.

When starting new positions don't add them all on the same day ( unless they are pair trades)

Becoming more familiar with Analyze tab

MGM Pullback

Closed 3 Contracts on open of MGM to minimize my overall delta's a little.

I need MGM to be below 11.18 for break even opposed to 11.28.
So decreased risk but also decrease probability of success by: 2%

Futures Trade -$37.50

Futures were selling off good after 6:00 and so I bought them at yesterdays lows.

Long Open 1282.00
Closed 1281.25 (1 min before market open)
$-37.50

First Futures Trade +$50

Made my first futures trade and probably not in the best environment.  Was on my break at work and noticed the 2 period RSI on the 15 min and 5 min was at the high range. Got in at 1293 and put my stop at 1295.25 (.25 over the over night high). While I was working /es ran up to 1295 and came back down and 2 hours later I was up 2 points, moved stop down and ended up a 1 point winner. +50-7 commission = $43

Sell -4 Vert FXE Feb12 127/125 put @.70

Trade:

• FXE Low end of range on Daily and Hourly Chart
• Dollar is at High End of Range
• Max Profit: $266
• Max Loss $520
• More Theta

AMZN Vertical +1 @ 1.66

Trade:

• Looking for bullish trades to even out portfolio
• Amazon is at middle range of 1 hr chart
• At lower range of 6 month daily chart
• Max Profit: $156.50
• Max Loss: $334
• 1.66 credit is 1/3 width of strikes
• Wanted more theta

TLT Hedge

Needed some bullish market hedge for the long side:

Trade:

• Sell -3 Vertical TLT Feb12 123/125 call @.44
• Max Profit: $132
• Max Loss: $468
• Market Goes up Bonds Come Down
• Couldn't find anything that was oversold so went the TLT. Trying to keep it mechanical

SLV Calendar

Trade:

• Buy +7 Calendar SLV Mar12/Feb12 30 call @ .52
• Cost of Trade: $380
• Little Bullish, looking for SLV to come up to the lower yellow line where the volume is

Notes: Idea from tastytrade

IWM Iron Condor

 Trade:

• Sell -5 IronCondor IWM FEB12 79/81/71/69
• Max Profit: $452
• Max Loss: $525

Looking for some neutral plays where I can get some theta working.
Looking for it to keep within the rectangle & the green lines on the Hourly chart:

QQQ in High Range

Back to the trade that I started this account with a fat finger.

Trade:

• +7 Vertical QID Feb12 41/43 call @ .73
• Max Profit: $889
• Max Loss: $529.50 (including Comm)

Notes: Just looking for the pull back. QID is a triple inverse of QQQ

With VIX Low I tend to buy debit spreads so I can get Long Vega

MGM +7 Vertical MGM Feb12 12/10 put @ .72

Trade:

• MGM +7 Vertical Feb12 12/10 put @.72
• Max Loss $522 (incl Comm)
• Max Profit: 896
• Break Evens: < 11.28 by Feb Ex.
• Bought it rather than sold it because feel VIX is at low end and this would benefit by jump in the VIX
• MGM in High Range on 1 hr chart
•  
• MGM in High Range on Daily 6 month chart
• Coming up on Resistance and 4 month High @ 12.00

Disclaimer: Seemed appropriate to put on first trade on MGM since I have a bet with a co-worker that it won't trade above $15 by May 10. Since the recent move I think he may have a good chance of it now opposed to when we made the bet, but short term it looks ready for a pull back.

First Trade of New Account (Backing up to get a running start)

Things that are good luck:

1. Raining on your wedding day
2. Every good roll in craps starts with a craps
3. Start new account with a fat finger trade loss

Ok, so I made up the 3rd one, but I hope it's true.  

I bought a put spread in QID (inverse of QQQ) as my first trade in this account and as I checked the QQQ it was grinding down a little but I noticed my spread was losing money. After looking at the trade multiple times I realized, I SOLD the put spread for a credit, didn't BUY them as a debit spread. 

Closed it out and was relieved my first (fat finger) loss in my account was very very minimal. -$30