Dec 182014

– BUY IBM 100 JAN 15 150 PUT @1.99
Man I have been killing this trade lately. IBM dropped below a major level and has been bouncing around and with the volatility flipping out you can really play it nicely. Prices for the option dropped from well over $3.00 to around $1.50 and I was crapping my pants. I almost sold options here but then when I saw that I bought the options cause they were so cheap. Seems the volitility is about to head back up after yesterdays drop off when the market rallied following the Yellen BS so as the vol increases you want to have purchased the options because the vol expansion will drive up the value of the option.  I’m seeing a sell off in the market till the end of the year so I think I got on the right side of the trade.

Thing that is scaring me is the RSI coming up and the stock could easily test that $160 level so if I see the market continue up then I’ll be forced to pull it off tomorrow.

12/18/14 – SELL IBM 100 JAN 15 150 PUT @1.57
3 hours later,, pulled it off with a pretty substantial loss. Fricken market kept rallying and I noticed the resistance levels right when I put the trade on.  Should have waited.  ARRR! FUCK! %20 loss.