– BUY CALENDAR TWTR 100 (Weeklys) AUG1 14/JUN4 14 38 PUT @2.15
Here’s a calendar trade. It’s defined risk which means you can’t lose more that what you paid for it. Looking for twitter to level off after hitting the top of the regression channel and sit around 38 or move lower. With low IV Rank it should stay in a pretty tight rang. Basically looking to buy back the front month and keep selling weeklys until expiration. I’ll put in a GTC order to automatically sell the trade if the stock price goes quite a bit below the strike because it will already be profitable. There’s a good chance that I made this trade to early but I needed to put a trade on. I like to do calendars around 40 days till expiration and this is one of the few stocks that I can ride and end before an earnings report which is around 7/29/14.
6/20/14 – I must be doing something right because on the LIZ&JNY show they setup virtually the same kind of trade as this on TWTR when coaching Nick. They didn’t use any technical analysis and are buying a call calendar that’s out of the money. Above you’ll see I used tips from askSLM on the regression channel. They got a cheap price for it (I probably paid way to much) but the stock price will have to go up quite a bit to be in their rang. So I’m battling the tastytaders right now. =) Big thanks to LIZ&JNY and SLM!! at WWW.TASTYTRADE.COM
7/1/14 – SELL CALENDAR TWTR 100 (Weeklys) JUL1 14/JUN4 14 38 PUT @.25
Well this trade sucks so far. I got caught up in the CO Belt which made it so I wasn’t able to trade Thursday/Friday so I had to put in a roll first thing Thur. morning to extend the trade. I would have been able to roll it around $38.50 at the end on Thursday which would have been good but I had to settle for a crappy $.25 roll at around $39.50. Now it’s ripping even higher and I may have to let the short expire. LAME! We’ll see…
7/8/14 – SELL TWTR 100 JUL 14 38 PUT @1.61
I let the July 1 expire worthless but this week Twitter gaped back down to $37.50 and I was able to sell an ITM (In The Money) put at a great price against my original put that I bought. I’ll be looking to sell the whole package soon.
7/10/14 – SELL CALENDAR TWTR 100 (Weeklys) AUG1 14/JUL 14 38 PUT @1.69
Sold my position early for a profit. I bought this calendar trade for $2.15 and sold it for a total of $3.55. Stoked!
DISCLAIMER - JVOND SUCKS AT INVESTING! FOR LEARNING PURPOSES ONLY!