#1 GLD: Sept 21 Expiration, Bullish Butterfly. B 1 114 C, S 2 117 C, B 1 120 C .82 Debit. Spread trading around .88-.89 area today with GLD trading higher at 115.06 +.54. #2 NFLX: Aug 10 Expiration, Bullish Butterfly. B 1 342.5 C, S 2 352.5 C, B 1 362.5 C, 2.35 Debit. Spread Trading about .30 lower today with NFLX at 340.70 -3.78. #3 SPX: Short Term Butterfly. Aug 10 Expiration. B 1 2800 C, S 2 2830 C, B 1 2860 C, 11.80 Debit. Spread trading around the same price as what I paid with SPX today at 2836 +9. Watch yesterdays episode below.
About Dan Sheridan
Dan Sheridan traded in the pits of the CBOE for over twenty years and is still a weekly educator at the Options Institute in Chicago. He opened Sheridan Options Mentoring in 2007, and has since educated thousands of retail traders by relying on the methodologies and strategies that were crafted by current market makers.
Entries by Dan Sheridan
AAPL Iron Condor for Earnings in the Aug 3 Expiration S 1 Aug 3 200 C, B 1 Aug 3 205 C, S 1 Aug 3 180 P, B 1 Aug 3 175 P, 1.06 Credit With AAPL + 8.61 at 198.90 , the Iron Condor is trading at .99, we are up a small bit. We are about 7 points from the short call strike of 200 with today, Thursday , and Friday till this trade expires. The position Greeks for 1 contract are -32 Deltas short and 15 Theta and -4 Vega. The high today is 199.26. If we break 200, the short strike, I would adjust the trade by buying the 190/195 Call spread to narrow the width of the call side 5 points and reduce the short deltas. Bottom Line: Earnings are out , we are up a small amount of money and have a plan if the short strike is threatened. AAPL Bearish Butterfly for Earnings in the Aug 10 Expiration B 1 195 P, S 2 185 P, B 1 175 P, 2.60 Debit. With AAPL up 8.61 at 198.60, we were wrong on this speculative Butterfly and sold it out today for 1.29 […]
AMZN Double Butterfly in Jul 27 Expiration. Our short strikes in the Butterflies were 1910 in the Calls and 1710 in the Puts. AMZN opened at 1876, hit a high of 1880 , and then dropped off to 1849 area. At the opening, I sold out the Call Butterfly for .36. The total cost of the Butterfly was .75. Net we lost $36 for every 1 Double Butterfly. Not bad for a cheap shot. The move in AMZN was less than the expected range of $100 , which is where we structured the short strikes of the Butterfly. Lesson Learned: Next Earnings , I will probably do this strategy , but I will pick an expiration 1-2 weeks past the earnings date to structure the Fly. Reason? It’s very rewarding but difficult to structure a Double Butterfly in the expiration that is the same week as the Earnings Release date. Doing a Double Butterfly in an expiration that is the same week as the Earnings release date requires almost precise accuracy when picking the short strikes, very difficult. It’s like making a Bullseye. Giving us an extra 1-2 weeks next time should provide just the right tweak to this very […]
#1 AMZN Earnings Double Butterfly in Jul 27 Expiration B 1 1900 C, S 2 1910 C, B 1 1920 C .35 Debit B 1 1720 P, S 2 1710 P, B 1 1700 P .32 Debit #2 FB Bullish Butterfly Aug 3 Expiration B 1 175 C, S 2 180 C, B 1 185 C .87 Debit #3 SPX Butterfly Aug 10 Expiration (Didn’t get filled) B 1 2810 C, S 2 2840 C, B 1 2865 C, 9.70 Debit. #4 Adjustment for Tuesday’s Live Calendar in SPX B 1 Aug 20 2940 C 1.20 (Decided to just buy a cheap call versus re-positioning the Calendar like I talked about) See video below!
3 Trades from Yesterday’s Show that I put on Live # 1 TSLA Short Term Bullish Butterfly B 1 Jul 27 300 C, S 2 Jul 27 305 C, B 1 Jul 27 310 C, .65 Debit. Looking for TSLA to be near the short strike of 305 by Thursday. Today TSLA is at 299.62 +2.19, moving in the right direction. The price has already moved up near .75, have order in now to sell for .95 credit. #2 NFLX Short Term Bullish Butterfly B 1 Jul 27 360 C, S 2 Jul 27 365 C, B 1 Jul 27 370 C, .72 Debit. Spread trading around .70 with NFLX down a little over $1, at 356. We need NFLX to have an up day tomorrow and move toward 360 area. #3 SPX Calendar With SPX around 2815 yesterday, we did a short term Calendar. We bought 1 Aug 20 2815 C and sold 1 Aug 3 Expiration 2815 C for Debit of 9.65. The Spread is trading a little lower today, around 9.45, with SPX around 2819. Nothing much going on with this today.
AMZN High Octane 1 Day Iron Butterfly with AMZN near $ 1815. B 1 Jul 20 1815 C, S 1 Jul 20 1805 C, S 1 Jul 20 1805 P, B1 Jul 20 1805 P, 8.15 Credit. Risk $185. Looking to take this trade off for a profit in the first 1-2 hours of trading tomorrow as long as AMZN is somewhere between 1785 and 1840. Will keep you posted with what I do in the AM tomorrow. TSLA 1 Week Iron Condor with stock near $320 Jul 27 Expiration. 335-340 call spread and 305-310 Put spread. 2.29 Credit and I didn’t get filled . If I try this again tomorrow, will let you know. SPX 15 Day Butterfly Aug 3 Expiration. B 1 2780 C, S 2 2810 C, B 1 2835 C, 9.70 Debit. Not filled yet, if I get on tomorrow will let you know. *** TRADE UPDATE AS OF 9:50am 7/20/2018*** Yesterday we did an 1 Day Iron Butterfly with the short strike of 1815 for an 8.10 Credit. Today, with AMZN at 1831 +18, the spread is trading at 8.40-8.70 area and I took it off for 8.40, a small loss.
Earnings in NFLX are after the close today. NFLX stock is down 7% from its highs of $423 on Jun 21, about 3 ½ weeks ago. The Projected price move for earnings on the TD Ameritrade Platform is around $30, projecting about a 7% potential move in the stock. The July 20 At the Money Straddle for this week is around $34, projecting a potential move of about 8.6% up or down. Bottom line , the projected moves are between roughly 7 and 8 ½ %. What range does that project for where NFLX could possibly be tomorrow in the AM when the stock opens? The answer using the current price of $393 is: $359 to $426. There is a high Probability tomorrow morning, NFLX will be somewhere between $359 and $426, up or down about 8 ½%. Now to today, what would I do? Do I know what will happen tomorrow? Of course I don’t know what will happen tomorrow, either do you. But the question to answer is this: Do I think NFLX will be between 359 and 426 or do I think it will be outside this range. Either answer is still going to make the strategy […]
TSLA is trading at 312 +3 for today. I’m looking for a cheap shot on the upside. 3 weeks ago, TSLA traded $373. Today it has bounced a little but is still trading 16% lower than it did 3 weeks ago. If I am looking for more of a bounce over the next 2 weeks, here is a trade in the July 20 Expiration , I did today. Trade: Buy 1 320 Call, Sell 2 330 Call, Buy 1 340 Call, 1.12 Debit. July 20 Expiration. Looking for TSLA to be between 317 and 345 over the next 7-8 days. This is an 11 Day trade. My profit Target is around 40% and look to get out of this trade in 7-9 Days. I paid 1.12 Debit and would like to sell it out for around 1.55 Credit. If TSLA trades under $300 in the next 7 Days, I probably would get out. Dan Sheridan firstname.lastname@example.org
Monday, Jul 2 of this week, TSLA traded intraday at 364, it closed at $335. Today, Friday July 6, TSLA is trading at $308, down 15% or 56 points from Monday’s Highs! You can check the proposed reasons for this on the web or a multitude of places, so I won’t focus on the Pundits opinions. What I will focus on is this: If I think TSLA will recover some of the 56 points it lost this week , maybe over the next 2-3 weeks, how can I get long? Better yet, how can I get long without getting my face ripped off if I’m wrong and TSLA goes down more? I have many choices to get long TSLA , but will focus on 3 popular ones. I can buy a long call or a long Vertical, 2 popular choices. Both have decent risk if I’m wrong. My third choice involves starting with a long vertical and then selling a short vertical against it where the short strike of both spreads is the same. What is this called? A Butterfly Trade. This is much cheaper dollar wise than a long call or vertical. Can this Butterfly trade make as much […]
July 5 Live Trades from SOM TV Show COST Iron Condor. Jul 20 Expiration. S 1 215 C, B 1 220 C, S 1 200 P, B 1 195 P, .99 Credit. With COST currently trading at 208 -1, the Iron Condor is trading at .89. Nothing to do now. Position Greeks at 208.23: Deltas -4, Gamma -3.47, Theta 5.71, Vega -10. TSLA Bullish Butterfly. July 20 Expiration. B 1 320 C, S 2 325 C, B 1 330 C, .31 Debit. With TSLA at 307 -2 today, the spread is trading at around .30- 35 range , nothing to do right now. Dan email@example.com
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