UNG, the etf for natural gas is trading near highs not seen since the middle of last winter. A short term bearish butterfly looks interesting here to take advantage of a pullback that may be coming. As I write this, UNG is trading around $26.60. I am looking to place the trade below at a debit of around $1.30 per contract. Looking to close the trade at either a 10% profit or a 10% loss. Looking for UNG to decline to the $25 to $26 area in the short term.
Nov 2nd expiration:
Buy one 28 put
Sell two 25 puts
Buy one 22 put
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Mark Fenton/wp-content/uploads/2015/04/logo_svg_full_name_white.pngMark Fenton2018-10-19 14:25:552018-10-19 14:26:01Bearish Natural gas spread
(The below trade was put on earlier today in a webinar with ally invest.)
Today around 11:30 am central, we put on an Iron Condor with SPX around 2760 and VIX just under 22.The trade was in the Oct 26 Expiration. B 12860 C, S 12850 C, S 12630 P, B 12620 P, total credit 2.20 , margin/risk$780. Plan is to take off for about 8% profit or 1.55 Debit. If spread goes over $3 get out for 10% loss.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-10-15 19:47:332018-10-16 15:36:33Live Iron Condor in SPX
(The below trade was put on earlier today in a webinar with ally invest.)
B 1 Oct 17 2930 C, S 3 Oct 17 2940 C, B 1 Oct 17 2950 C, 1.80 Credit, Risk or Margin $820. Max $180 credit on downside or 21% on Capital. Plan on downside would be to buy back the spread at 1.20 debit and make around 7%. If the SPX goes up to 2905, I might look to buy the 2930-2940 Call spread in the Oct 17 Expiration , to reduce my short Deltas.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-09-17 18:33:212018-09-17 19:02:37Live Trade Today in SPX- Ratio Call Fly
Live RUT Calendar I put on during Sheridan TV today with RUT around 1715. B 1 Oct 5 1715 C, S 1 Sep 21 1715 C, 8.95 Debit. Look for 6% in next 1-2 days, sell out for 9.50 Credit. If spread goes under 8.30,down 8% get out.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-09-13 20:28:112018-09-13 20:53:45Live trade for today
Spec Directional Trade with AMZN at$1961-33. Bullish Butterfly looking for a slight rebound over nextweek.Sep 14 Expiration.Buy 11985 C, S 22000 C, B 12015 C,1.20 Debit. Looking to sell this out for 1.60 Credit or higher.
Income Trade in SPX. 15 day Butterfly in the Sep 15 Weeklys. B 12840 C, S 22880 C, B 12915 C,13.15 Debit. Looking to sell out the spread for 13.95 credit or higher over the next 1-3 Trading Days.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-09-06 20:53:242018-09-06 20:53:28Live Trades from Todays SOM TV Episode
#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.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-08-03 18:17:032018-08-03 18:17:08SheridanTV Live Trades from Thursday Aug 2
AAPLIron Condor for Earnings in the Aug 3Expiration
S 1Aug 3200 C, B 1Aug 3205 C,S 1Aug 3180 P,B 1Aug 3175 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 Thetaand -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.
AAPLBearish Butterfly for Earnings in the Aug 10 Expiration
B 1195 P, S 2185 P,B 1175 P,2.60 Debit. With AAPL up 8.61at 198.60, we were wrong on this speculative Butterfly and sold it out today for 1.29 Credit. Wanted to cut the losses , we were wrong. For this butterfly to make money, we need it to go towards the short strike by next week and the Aug 10 Expiration. That would be 185 in AAPL by next week or near that price, and frankly, doesn’t look like that probably will happen. If I stayed in the Butterfly hoping for a decline in the next week, I could watch the 2.60 debit go to zero. I basically pared the loss in half.
Iron Condor in Spotify Aug 10 Expiration.S 1190 C, B 1195 C,S 1180 P, B 1175 P,2.55 Credit. Currently trading at 2.45 with SPOT at 182.34, not much going on.
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-08-01 15:36:402018-08-01 15:36:40SOM TV Trades from Tuesday Jul 31
BIDU has their earnings call tonight and one interesting trade idea if you are bullish is to put on an out of the money call fly to take advantage of a strong bullish move. Below is an example taking into consideration the market maker expected move of $16:
August 3rd expiration
Buy one 260 strike call
Sell two 270 strike calls
Buy one 280 strike call
Right now the debit for the trade is around $1.50 per spread.
Plan to exit tomorrow or later this week before Friday expiration. If this trade doesn’t work you will like lose the entire cost of the trade, but if it does work you could make 20% to 50% or more.
AMZNDouble 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 low cost and potentially high reward strategy!
FB: Bullish Butterfly in Aug 3 Expiration: B 1175 C, S 2180 C, B 1185 C,.87 Debit.Today, with FB at 177.70+ 1.42. Just Sold out the Butterfly for 1.25 Credit, 43% yield in 1 day, excluding commissions!
/wp-content/uploads/2015/04/logo_svg_full_name_white.png00Dan Sheridan/wp-content/uploads/2015/04/logo_svg_full_name_white.pngDan Sheridan2018-07-27 14:43:162018-07-27 14:43:16Update for AMZN and FB trades from SOM TV from Yesterday
“I just wanted to send you a quick note of "Thanks" for everything you have done for me with Sheridan Options Mentoring. I have had a really good 2015 and it would not have been possible without your creating the classes and system to teach me the craft. It has taken me the better part of 3 years to really figure it out and own it (slow learner ;O) ), but I really feel like I can continue trading this way for the rest of my life. The hardest part for me was stopping the dumb mistakes, like "I hope, I hope, I hope" trading, thinking I was smarter than the market, and revenge trading trying to get my money back... - Read More
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