Excellent play on Nov 17 OE day
I had 310 position of QQQQ NOV $45 ITM put. It closed at 44:30 on Nov 16,2006. The option closed at 0.70 on Nov 16 and my cost was 0.76
My balance will increase 1500 for every 5 cents increase of QQQQ NOV 45PUT.
The weak new house number made the premarket dipped 10 points for NAZDAQ. When I get to office, launched IB, I saw QQQQ was 44.06-44.08. And QQQQ NOV 45PUT was $0.9-0.95
It began to rise after opening, it rised to 44.18 at 10:00AM. I thought QQQQ could hit 44. So I waited. It began to drop from 10:00. At 11:00-11:15AM. It dropped to 44. I was very excited and thought my patience may pay off. I inputed $1.05 sell order first. QQQQ dropped as low as 43.96. The $1.05 order didn't hit. QQQQNOV $44 PUT was approaching 0.10. I thought bear spread could add my profit for additional 10 cents for each. So I sold 100 contracts of QQQQ NOV 44 PUT at 0.10. So I have 100 contracts sets of bear spread (sell $44 put and own $45 put). This is most success complicate option trade.
I plan three part play:
- Sell 100 contracts at around $1
- Sell other 110 contracts at around $1-$1.1
- Use 100 contracts to hold my 100 QQQQ 44 PUT positions.
And I tried to sell 100 contracts of $45 put at $1.00. They made deals at 11:15AM. At that time my total (paper+real) profit was $9000!!!!!. At that time my total balance of account was 44000. I expect QQQQ is drop more to around 43.85-43.90 area so that I can implement the second part selling. However the QQQQ stopped dropping at 11:!5AM and began to rise after 11:15.
posted by Dave at 9:26 PM
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