Monday, August 08, 2011

MS4 should provide support. Even not touching 107.81

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To capitalize it, game plans are as follows:  Bet small.  1 pair for each strategy! Close all position by Aug 19.  When price penetrates 107.81, the entire 3 trades are invalid.  liquidate immediately.

1. Sell Aug 19 107 put and buy Aug 12 110 put.  Free insurance for the week.  After a 2nd thought, not worth it.  Will apply on Sep 30 options next month.

2. Credit put spread Aug 19 -107 +105, or -107+104.  Need calculation. Look for the best ROI = credit/initial margin

  • Aug 9: 0.18, 0.17, 0.16, 0.16 via managed accumulation.  By default, it was 0.14~0.15 per spread.
  • The calendar spread: Oct 107 put 4.28, Aug 19 107 put 2.01.  Spread cost: 2.27.  Model says I could expect $1.00 net per spread on Aug 19.image
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3. Debit call spread Aug 19 +106 –107, or +105-107.  Need calculation. Look for the best ROI = credit/initial margin

4. Naked short put option Aug 19 107.

5. Calendar spread.  short Aug 19 107 put and long Oct 21 107 put.

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  • Aug 9: See above Aug 9 update.

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