BABA August 2015 Calendar

[Vancouver 54]

Entered a 1-week calendar C77.5 & C80 spread on BABA today/yesterday @ $0.17-$0.18-$0.19. Long August 21, short August 14.

There is A LOT of time before earnings, but prices are very cheap!

 

This is what luxmon reported during the previous cycle:

 

May8/May15 85 put:  Entered for 0.23 on 4/27, exit for 0.30 on 5/4 (26% profit after commissions)

May8/May15 85 call:  Entered for 0.22 on 4/28, exit for 0.31 on 5/4 (36% profit after commissions)

 

So even with plenty of time ahead, entering around $0.18 seems like a great entry point.

[Edwin 63]

There looks to be more liquidity in the monthlies than in the weeklies, would you consider doing Aug/Sept or Aug/Oct spreads with fewer number of contracts?

Sorry for the double post, I read through the FAQ/Useful Links, and am asking the same question about strategy of trading the weeklies vs. liquidity being better for the monthlies vs. the weeklies.

 

https://steadyoptions.com/forum/topic/1790-trading-pre-earnings-calendars/page-2 

Edited July 11, 2015 by edboc

[4REAL 110]

added some 80C and 80P 1-week ( -Aug14  +Aug21) calendars @ .15

 

was already in the 77.50P calendar @ .14 and .15

Edited July 16, 2015 by 4REAL

[bam1960 53]

Entered this trade today, a combination of 82.50 puts and calls @.17 smaller than normal position

[luxmon 228]

I entered the 77.5 and 80 put 1-week calendars for 0.16 on Monday 8/3.   After the funkiness seen in calendar behavior this cycle, decided to exit the 77.5 put calendars today for 0.25 yielding 56% gain before commissions, 50% after.  The 80's didn't fill yet but marking 0.25 also. 

[craigsmith 357]

I entered the 77.5 and 80 put 1-week calendars for 0.16 on Monday 8/3.   After the funkiness seen in calendar behavior this cycle, decided to exit the 77.5 put calendars today for 0.25 yielding 56% gain before commissions, 50% after.  The 80's didn't fill yet but marking 0.25 also. 

That's an awesome trade. I'm trying to follow some of these unofficial trades, and am pretty impressed. The problem with some of these cheap calendars is the commission is too high for me. Can I ask what broker you are using?

[luxmon 228]

That's an awesome trade. I'm trying to follow some of these unofficial trades, and am pretty impressed. The problem with some of these cheap calendars is the commission is too high for me. Can I ask what broker you are using?

 

I have accounts at IB (via LiveVol) and Tradestation.  I have negotiated rate structures with both brokers, but Tradestation is much better for trades like this (~0.30 per contract on this trade but varies depending on number of lots since there's a ticket).

[verbotenstylen 6]

I have accounts at IB (via LiveVol) and Tradestation.  I have negotiated rate structures with both brokers, but Tradestation is much better for trades like this (~0.30 per contract on this trade but varies depending on number of lots since there's a ticket).

 

luxmon, what do you think of LiveVol X?  I was thinking of moving over to them from TOS.  I see they offer $0.65/contract commissions, no ticket.  Their analysis software seems top of the line.

[luxmon 228]

luxmon, what do you think of LiveVol X?  I was thinking of moving over to them from TOS.  I see they offer $0.65/contract commissions, no ticket.  Their analysis software seems top of the line.

 

 

I like LVX but it took some time.  It comes with little guidance on how to use it.  Coming from TOS you will miss some of the features of the Analyze tab if you use it to test strategies and adjustments over time by locking the price on spreads.  In LVX there is no "memory" of the intraday spread price so you'll have to jot it down or use another software package (even TOS if you still have it).  You can get EOD prices on all options for backtesting however.  

 

There is a pseudo-ticket charge that comes about as a minimum charge of $1.50 per leg which is annoying for single contract orders.  I'm agnostic on brokerage platforms, but here are my opinions:

 

Main benefits of LiveVol is:  

1) Lower commissions than IB with all the benefits of IB (you can even use TWS if you like), even better pricing available if you belong to certain education services.

2) Very lean and fast interface built on Adobe Air (compared to TOS, TWS, or Tradestation)

3) Charting of realized and implied volatility across multiple timeframes is second to none.

4) Near limitless search capabilities for order flow, IV, RV, term structure, etc, 

5) Very good support through live chat right in the application (like TOS).  

 

Drawbacks I can think of:  

1) need minimum of $35k to fund an account,

2) Can't chart option prices over time, very annoying (need to use other software)

3) The software side was just bought by the CBOE and the brokerage side went to Lightspeed (so far no change besides letterhead but not sure what the ramifications of this will be in the long run),

4) might not be able available in all countries as IB, 

5) No mobile app, need to use TWS mobile for trading on your phone/tablet.

 

Cheers, 

Tim

[verbotenstylen 6]

Thanks Tim, really appreciate the input.  I just looked at livevol's site, and it appears that there is no brokerage arm shown anymore, unless I'm missing it.  You can get LivevolX for $500/mo, but there's no offer of having it included for free for opening a brokerage account through them.  Perhaps this has to do with your drawback #3 above?  Maybe I just caught them in some sort of transitional period.  

[luxmon 228]

Their brokerage arm is a separate entity but an account there entitles you to use the LVX platform.  The brokerage website is http://www.livevolsecurities.combut unsure if anything has changed with the recent acquisition by Lightspeed.

[verbotenstylen 6]

Their brokerage arm is a separate entity but an account there entitles you to use the LVX platform.  The brokerage website is http://www.livevolsecurities.combut unsure if anything has changed with the recent acquisition by Lightspeed.

 

Gotcha, thanks.  There's a note saying that brokerage has moved to Lightspeed, then when I go to that site I can see LVX rolled into their platform lineup.  It looks like Lightspeed has even lower commissions at $0.60 (less for active traders) but with different minimums per order depending on the platform.  Also $200/mo fee for LVX, less commissions "until 12/31/15," which tells me that they will probably try and increase the fee after that if I had to guess.  Given the uncertainty of what's going on, I'm probably going to lean towards IB.  Will give it a couple months though.

Edited August 9, 2015 by verbotenstylen

[TDM 33]

I think IB is your best bet for the strategies here at SO. I personally have an account at both IB and Lightspeed. I use IB for options/spread trading, and LS for straight day trading. Lightspeed is really geared towards fast order execution (at the best available price) and custom routing, not to the SO style.

[luxmon 228]

Exited the 80 put 1-week calendar for 0.21, kinda disappointed since I think I could have got more but work prevented me from watching it.  (31% before / 26% after commissions).  What did others that traded it manage to get for the 80 put calendars (or others for that matter)?

Edited August 11, 2015 by luxmon

[4REAL 110]

Hey Luxmon,

 

If I had closed on Friday like you (partially) did the result would have been better..

 

I had 85C, started closing yesterday @ .25 / today I got .22 for same 85C

I had also

77.50P  closed for an average of .242

80C closed for an average of .23

80P closed for an average of .20

 

My average exit price (on whole trade) is .2280/ spread

Edited August 11, 2015 by 4REAL

[SeanM 29]

Exited the 80 put 1-week calendar for 0.21, kinda disappointed since I think I could have got more but work prevented me from watching it.  (31% before / 26% after commissions).  What did others that traded it manage to get for the 80 put calendars (or others for that matter)?

 

I got 20c today for the 80P.  As 4REAL mentioned, wishing I'd closed last Friday, but at least it didn't fall back down today to where it was early last week around 15c.

Edited August 11, 2015 by SeanM

[Chuck451 120]

I had the 77.5 and 80 1-week call calendars and exited both on Friday at 0.27 and 0.24 respectively.  21% gain after commissions.

[Vancouver 54]

My exit prices are the following:

 

80P @ 0.27 (Aug 10)

77.50P @ 0.19 (Aug 11)

80C @ 0.24 (Aug 10)

77.50C @ 0.24 (Aug 7)

 

My average entry price was 0.18, so overall a successful trade. But I opened it way too early on July 10.

 

[Vancouver 54]

Sorry:

77.50P @ 0.27 (Aug 10)

80P @ 0.19 (Aug 11)