Open - RTH, IBM Calendars, WMT Double Calendar

Written on August 26, 2008 by OptionsRopeaDope

Forgive me for skipping the template on these in this post. These round out my positions, and were all opened this past Friday. Here is a short explanation and rationale for each:

RTH Calendar (95 puts) - RTH has been very kind, and has stayed in a tight range for a few months. After banking a drop in IV last month, I decided on another calendar this month. The IV is in the 40 percentils, still very high, but there’s no denying the channeling power of RTH.

IBM Calendar (125) - a small position trying to take advantage of rock bottom IV (bottom 15% of the previous year’s range). It was a bonehead move though - I missed a skew of -4 points, and now I’m paying for it with a 8% loss and a premature adjustment (to 120). I should have had a V8 before this one. On the good side, it is my smallest exposure.

WMT Double Calendar (57.5, 60) - WMT couldnt channel any better, and IV is in the bottom 20%. Still at breakeven. (I could swear I see a triangle forming on the chart…)

I’ll have fancy charts for all of these when I provide trade updates.

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    • Category Posted in Real Trades, Calendars, RTH, IBM, WMT

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