Category Archives: Options

New Site (Gen ROC)


I’ve started posting on a new site “Gen ROC“.  This blog will target trading ideas to generate and optimize Return On Capital (ROC), primarily via the strategic use of derivatives. Here are a couple of initial posts … /CL (Light … Continue reading

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Short Strangle – Gold Futures


SELL -5 STRANGLE /GCG5 1/100 JAN 15 /OGF5 1360/1040 CALL/PUT @4.40 LMT Credit – max profit (including commissions) = $2.162 Days to expiration = 37 Initial margin = $3,441 ROC (max profit) =~ 63% Look to take off trade at approximately … Continue reading

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Short Strangle – 10 Year US Terasury Notes Futures


SELL -5 STRANGLE /ZNH5 1/1000 JAN 15 /OZNF5 132.5/121 CALL/PUT @0”09 LMT Credit – max profit (including commissions) = $672.43 Initial margin = $1,885 ROC =~ 35% Look to take off trade at 50% of max profit. POP =~ 90%

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Short Strangle – 30 Year US Terasury Bond Futures


SELL -3 STRANGLE /ZBZ4 1/1000 OCT 14 /OZBV4 145/129 CALL/PUT @0”12 LMT GTC Days to exp. = 59 ROC (max. profit) = 562.5/1654.13 =~ 34% The idea would be to take off the spread around 50% of max. profit.  Hence the actual … Continue reading

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VIX – Bull Call Spread


VIX is at the lower of it’s range as has been then case for a while.  Looking for a pop in volatility as we approach earnings season.  Taking a bullish position via  call vertical. BUY +10 VERTICAL VIX 100 AUG4 14 12/13 … Continue reading

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Short Strangle – 30 Year US Terasury Bond Futures


SELL -4 STRANGLE /ZBU4 1/1000 SEP 14 /OZBU4 142/129 CALL/PUT @0”09 LMT Days to exp. = 47 ROC (max. profit) = 562.5/2279.00 =~ 24.7% The idea would be to take off the spread around 50% of max. profit.  Hence the actual ROC … Continue reading

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Bullish positions in UNG (US NAT GAS Fund ETF)


Underlying chart … A few different approaches to initiating a bullish position.  Each one has it’s nuances in terms of capital required, P&L. – A call debit spread, financed by the sale of cash secured puts. – A synthetic covered call … Continue reading

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Short Strangle – Light Sweet Crude Oil Futures


SELL -3 STRANGLE /CLQ4 1/1000 AUG 14 /LOQ4 115/92 CALL/PUT @.27 Days to exp. = 51ROC (max. profit) = 810/1980 =~ 40.9% The idea would be to take off the spread around 50% of max. profit.  Hence the actual ROC would … Continue reading

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GLD Calendar


GLD IV is at the lower end of it’s range.  Looking for an increase in IV. BUY +10 CALENDAR GLD 100 JUL 14/JUN 14 124 PUT @.77 LMT

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Earnings play on Netapp Inc. – Closing trade


BUY +5 STRANGLE NTAP 100 (Weeklys) MAY4 14 36/34.5 CALL/PUT @.24 LMT Opening credit = $610 (open trade link) Closing cost = $135 Profit = $475  

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