View Full Version : Advanced Options trading strategies.

13-11-2010, 12:15 PM
Hi there ,

I am doing options on US markets and my plan is to become FT options trader in next few months.I would like to be in touch with other traders in Auckland area.

Cheers ,


21-11-2010, 07:56 AM
How you going with this Gazda

collars, strangles, straddles and spreads etc they were all covered in the course I did this year, but I didnt totally get my head around them.

Here are some notes - I can post more if your'e interested although I imagine you have all this relatively basic info already

Long straddle: long call A, long put A (same
exercise price A=X)

�� When to use: If market is near A and you expect
it to start moving but are not sure which way to
move. Especially good position if market has
been quiet, then starts to zigzag sharply,
signalling potential eruption

Profit: Profit open-ended in either direction. At
expiration, break-even is at A, plus or minus cost
of spread

�� Loss: Loss limited to cost of spread. Maximum
loss incurred if market is at A at expiration

Short straddle: Short call A, short put A
(same exercise price A=X)

�� When to use: If market is near A and you
expect market is stagnating. Because you
are short options, you reap profits as they
decay—as long as market remains near A

Profit: Profit maximized if market, at
expiration, is at A. In call-put scenario,
maximum profit is credit from establishing
position; break-even is A plus or minus
that amount

�� Loss: Loss potential open-ended in either
direction. Position, therefore, must be
closely monitored and readjusted to
neutrality if market begins to drift away
from A

20-12-2010, 07:03 AM
Hi Gazda, just noticed this and thought I would say hi. I have traded options for about a year, done... ok at it, but am a long way off being full time on it!

Mainly learnt through motley fool options, but have started developing my own (fairly conservative) style... happy to talk more.


14-01-2011, 08:25 PM
Hi guys,
Thank you for your reply's.I have recently changed my trading platform to Thinkorswim.It is perfect for trading advanced option strategies such as Condors,Iron Condors,Double Calendrs since they have a superb graphics.Keen to share knowldge.


17-01-2011, 01:07 PM
Do you buy option to cover the risk of your stocks or you are bet on naked option?

22-01-2011, 09:02 AM
Hi nzakl,

When I am trading shares I am ALLWAYS buying PUTS.(with usualy 3-6 months expiry date).With Iron Condors and Calendars strategies you have to use naked options.In 95% I am trading ETF-s to minimize chanses to be excercised before time.I am opening my positions 30-40 days before expiry and I am closing down 7 days before expiery.
Daily monitoring (10-30min) is neccessary and adjustments when there is need for that.NZ time is perfect for trading (for me).Getting up arround 6:00am and I am done by 6:45am.

12-02-2011, 05:23 PM
Hi Gazda
How are you going with this? I have been trading options on the US for about a year, learnt a lot. Mostly put writing and call spreads, but would be good to hear from another person who uses options. I'm using options to augment stock trading, whereas it sounds like you're trading?


15-02-2011, 05:23 PM
Hi Greg,

What is your trading style for US stocks?

I've been looking at futures recently, but a lot of the advice seems to be to start in stocks. Timezone is also a problem, which is why I'm also considering the hang seng minis.

How are the options working for you? It's not something that I've spent much time looking into yet. Trying to narrow it down so that I can focus on one thing and become proficient at that.

Good to see a bit more interest on this forum regarding alternatives to NZ AUS shares. Have you had much of a look at the Elite trader forum? A lot of rubbish, but also some very knowledgeable posters.


10-03-2011, 01:34 PM
Hi Simon

I tried to reply earlier, but something obviously stuffed up. My trading style is primarily long-term ownership, augmented by writing of puts and covered calls. Occasionally I will write strangles or spreads, but success with those has been a bit hit and miss. I mean seriously, what is with CRM (salesforce.com) ?!? ;-)

How is it working? Um... hmm. On the whole Im pretty pleased with my increased knowledge. However, in terms of full disclosure, I would probably be financially better off if I hadn't touched them, because of writing covered calls on stocks that subsequently rocketed off. Live and learn. Actually, I did learn a lot, and refined my strategy significantly, so not all bad.


13-03-2011, 08:28 AM
Hi Greg ,

It is working.My goal is to get steady monthly income of 6-8K USD using only Iron Condor and Double Calendar strategies.Also I would like to set up a Option trading mentoring group focusing on IC and DC trades.
Key for understading IC and DC is to have graphical representation of your trades and positions.Working with indexes mostly (EEM,IWM,DIA,GDX.......) and using Greeks for analysis (Delta,Vega,Gamma and Theta).

Cheers ,

14-06-2011, 02:41 PM
I have been trading Options over a few years now and most of my successfull trades are sold Options or combos. I seldom buy Options since they decay very quickly unless you get a stock with some major moves. Most of these shares are in consolidation patterns right now and should be good for butterflies/condors.