Opened 3 new positions today and reached my maximum margin threshold. I talked about some of these positions in the Weekly Trade Ideas video put out yesterday, and because today had all the right price action I was looking for, I decided to bite on some of those ideas.
First up we have $AAPL. This stock is way oversold, and has high implied volatility. This means that we can sell for decent premium far away from the market and maintain a high chance for profit. I wanted to see this stock bounce after holding the 149-150 area of support, and it did. The position is the Nov17 140/145 Bull Put spread filled @ 1.09. For more details, consult the video.
Next we have $FB. Again, a very oversold stock, but not one that I want to play directionally. Since implied volatility spiked due to yesterday's 4% selloff, it was possible to sell good premium quite far from the market and maintain a high chance for profit. The position is the Nov17 145/150/1800/185 Iron Condor spread filled @ 1.37. For more details, consult the video.
Last is a position not discussed in the trade IDEAS video. $SMH, like these other two stocks, sold off yesterday as part of a broad sell-off in the technology sector. I traded this successfully earlier in the summer during similar conditions, albeit that was paper trading, as I was still opening my IB account and all that. The same strategy applies here: implied volatility spikes, decent premium can be sold distant from the market with a high chance for profit. The position is the Nov17 79/84/95/100 Iron Condor spread filled @ 1.05.
All of these positions can be found in the CLT Options Trading Log, found here. If you want to get "alerts" and stay updated on my trading in real-time, follow me on StockTwits or Twitter.
**Note how cheap the commission was on the $SMH position! 4 contracts for less than $2. This is why I stated that although Interactive Brokers can be pesky and unpredictable in my MEGA Review of Interactive Brokers, I'm saving a ton of money trading with them over OptionsHouse / E*Trade or TD Ameritrade.