Dec 112014

– SOLD STRANGLE BWLD 100 JAN 15 185/150 CALL/PUT @1.63
This one seems to have everything I’m looking for except for the IV Rank but that isn’t always a major game changer. I’m looking at both the Bollinger Bands contracting and the new study below that measures volatility which is called the “Swami”. When both of those are rolling over I think it will be a good spot to sell volatility. Plus I ran it through “Dough” and it’s showing a POP of %80 and that’s getting me well over $1. Which when selling Vol. you should be looking for at least a buck. When the volatility decreases the options lose their value which I will buy back later when it’s cheap. BTW – This is on my new “2 day chart” variable and I recommend changing back and forth from day to 2 day to get a good idea of the movement.
From looking at  the day chart it doesn’t actually look that good but I should be able to flip for a decent profit.

12/12/14 – BOT STRANGLE BWLD 100 JAN 15 185/150 CALL/PUT @1.86
I need to rethink my trades here. Although it’s profitable it seems like it was placed at a time where it may break out.  I pulled it off.  The trading range is really wide in BWLD too so it’s actually not easy to get the pricing your looking for.  I’ll be looking to put more strangles on when the volatility of the overall market is higher which is looking like it might be getting there in this market.  %12 profit after commissions. The IV rank is scaring me along with the daily chart which is below.