STO TLT Dia Feb19 124 BTO Jan15 119 Puts for 3.75 Crd. Max risk is $125 Max profit is $375
I placed this position this morning and Jeff asked me if I could explain what I did for the benefit of everyone.
Here it goes:
This is a reverse Diagonal….
Selling the longer expiration Feb 19 2016 TLT 124 Put and Buying the shorter expiration Jan 15 2016 TLT 119 Put. The total position results in a credit of $3.75 pp. Since this is a $5.00 Horizontal Spread the max cost is 5.00 – 3.75 or $1.25 pp plus commissions.
This is what the MM does when we buy a Diagonal…he/she takes the other side of the trade. The trick is to close it in one trade, and don’t let the short expiration option expire, otherwise you’ll end up with a naked short put.
Author Archives: prvtrader
STO TLT Dia Feb19 124…
STO TLT Dia Feb19 124 BTO Jan15 119 Puts for 3.75 Crd. Max risk is $184 Max profit is $375
This is yesterday’s 15 min…
This is yesterday’s 15 min chart with today’s support and resistance levels on it. Those levels are normally not apparent on the daily charts, but sometimes, those levels hold the SPX or at least act as points where the price consolidate for a while.
STO Dec 12 SPX 2020/1995…
STO Dec 12 SPX 2020/1995 BuPS at $1.30; this completes the IC with the position I placed yesterday.
STO Dec 12 SPX 2140/2165…
STO Dec 12 SPX 2140/2165 for $1.35 Credit.
This is today’s chart showing…
This is today’s chart showing the Active Fib-Nodes and LOPs for this week. According to what the chart is showing the SPX should at least reach the XOP next week
So much for the SPX…
So much for the SPX Confluence at 2077; I just got stopped out at 2072.30; so it didn’t work; maybe I placed the stop too close. Learning experience.
Well, I was not going…
Well, I was not going to trade until after the Thanksgiving weekend, but I couldn’t resist the opportunity today. So,
STO Dec 24th SPX 2000/1985 BuPS at $2.20
Wed’s Chart….sorry I couldn’t post…
Wed’s Chart….sorry I couldn’t post it last night.
It looks like the Bulls…
It looks like the Bulls got a little tired after yesterday’s and this mornings rally…If price moves down tomorrow the Stochastic will give a signal to go short the SPX.
This is what I saw…
This is what I saw today on the SPX; I’ll try to post a chart each day after the close. The idea is to keep a track record of what I see and how I’m trading it.
STO Dec 11 LNKD 250/262.5…
STO Dec 11 LNKD 250/262.5 BeCS at $3.64. Stop at 252.33
STO Dec 11 SPX 1915/1900…
STO Dec 11 SPX 1915/1900 at $1.50, will get out if price goes below 2018.
Posting another chart from August….
Posting another chart from August. 
I lost money during that move, because I didn’t pay attention to my indicators. I was trading in “Automatic” since the market had been so kind to me during the consolidation. I should have made a bunch, but missed all the signals.
The SPX 2024 level held…so…
The SPX 2024 level held…so now what?
2045-2050 could be the top of the move, if this is just a retracement. It doesn’t have to get there today, but it might. Nevertheless, if it doesn’t get there today, it may do it on Monday; however, there is resistance at 2061 – 2064 which is a double Fib-Node and the retracement could turn back South there.
It looks like the SPX…
It looks like the SPX 2024 support is trying to hold; Traders are anticipating and buying at 2027 just 3 ticks not to miss the possible up move. TICKs are still below 0 though and the ADSPD is negative still.
$SPX Two possible areas of support…
Two possible areas of support within today’s reach are 2037-2039 and 2017-2024; below that is 2000 and 1967. The first two are agreement areas between Fib Retracements and Extensions.
There is one other support…
There is one other support at 2038 that may hold before getting down to the 2023.
The 38.2% of the move…
The 38.2% of the move from the lows of 9/29 to the highs of 11/3 is at 2023; I won’t be surprised if it comes down to there before the down move is over. The 61.8% is at 1965.2 so be careful.
Just closed the SPX 2045/2035…
Just closed the SPX 2045/2035 trade for tomorrow at break even. Don’t want to risk the possibility of a gap down again tomorrow.
On my 2045/2035 for tomorrow;…
On my 2045/2035 for tomorrow; I may take it out at the close if I don’t seen buying coming in after 3:00PM ET. The problem is that it is too close and a gap down tomorrow will hurt it. So why risk it?
STO SPX Nov 13 2045/2035…
STO SPX Nov 13 2045/2035 for $2.30 crd. Stop at 2050.30
SPX support at 2055 confluence…
SPX support at 2055 confluence from several Fib-Nodes. It should hold here, if it doesn’t then the next support below it is at 2038 and then 2022 and 2016.
Test Post 1
Jeff, thanks for inviting me.
Options Bistro 