Aug 072014
 

– BUY CALENDAR TWTR 100 SEP 14/AUG 14 45 CALL @1.53
I have been loving the calendars lately. TWTR coming off earnings here and looking to consolidate a bit. I think FB and TWTR are big players in the market these days. Seems everything else is a big drag when these stocks are very active and are in the same industry. TWTR hit support and I’m looking for it to stay around 45. I could have gotten a better price but I was chasing it, meaning using a limit order to get a better price but when the stock doesn’t trade back right away you will miss your opportunity. The longer you wait ends up hurting you because as the volatility rises the cost of options also rises. So,, most times with calendars you just want to buy them at market. I’ve been looking to stay on the OTM (Out Of The Money) side of the strike with the calendars so I can let the short option expire if needed.
The chart below is an example of what Options House gives you.

 

8/13/14 – SOLD CALENDAR TWTR 100 AUG4 14/AUG 14 45 CALL @.45
Rolled it…

8/19/14 – SOLD CALENDAR TWTR 100 AUG5 14/AUG4 14 45 CALL @.45
Rolled it…

8/27/14 – SOLD CALENDAR TWTR 100 SEP 14/AUG5 14 45 CALL @.76
Closed the trade. Twitter has been moving to far to fast. I may get back in with another calendar with a better strike price or just buy calls on a dip possibly.If it were to go even higher than $48 then I’d be looking at a loss where this trade put me at a small %8 profit. Bought at 1.53 and sold it for 1.66.
Basically playing it safe here…

DISCLAIMER - JVOND SUCKS AT INVESTING! FOR LEARNING PURPOSES ONLY!