Sold Some SPY Jun 14 '13 $165.50 Puts @ $2.90 + Bought Some SPY Jun 07 '13 $167 Puts @ $3.68...

Net debit of $0.78...

Loss of $0.49 per share on this lot...

Looks like the Buy the Dippers may be coming in, so will try to get out of the rest on a definitive pullback.  Otherwise, I'll need to get out at a price that is worse than current loss...

If I had skills, I would try getting out of the profitable trade and then getting rid of the losing trade on pullbacks, but I'm a Fraidy Economiss...

Dude... Somebody Teach Me Some Math!

Got assigned on FB and got out at a minor loss of $0.19 per share...

Gotta find a way to get out of this SPY trade or it'll be ForexDiva: The SPY Who Killed Me soon...

Whoa...

Market Makers??  I'm going to hold on tight and get through this fight!


-0.53% SBA
-4.53% Roth IRA

-1.36% DJIA
-1.01% Nasdaq
-1.43% S&P 

-1.11% FTSE
-0.92% Eurofirst
+1.37% Nikkei
-0.74% Shanghai
-2.25% SENSEX (Maharajas??)
-0.41% Hang Seng

-2.13% WTI
-2.06% Brent
-1.66% Gold
-1.24% Copper
+1.26% Corn

-0.42% EUR/USD
-0.74% EUR/JPY

-0.82% DJT
+12.18% VIX

+1.88% 10-Year US Treasury Notes

Into CORN Aug 17 '13 $52 Calls @ $0.30...

If corn marches towards its 52WH, I would be in the money with these calls!

Plus, if it only goes in that direction, I should be able to take profit...

I did a quick search and the Corn Belt was / could still be experiencing drought conditions, which could affect near-term harvests...

I Think How It Works... I Hope How It Works... If Not, I'll Be Crying On Here Really Soon!

Sold FB May 31 '13 $26 Puts @ $1.41 + Bought FB Jun 07 '13 $25.50 Puts @ $1.08...

Net credit of $0.33...

If assigned, will buy at $24.59 and exercise $25.50 puts, which have been financed via put selling...

My Heart Is Beating So Fast & I'm Short of Breath...

I got only 3 hours of sleep last night as the Japanese Housewives once again knifed down big time!  I figured the US stock market would sell off too and worried about how I don't have any more SPY puts left.  For the first time in ForexDiva history, I did not blame myself and focused on how I can turn this thing around without getting dinged some more.

I woke up with a fresh perspective and searched for instances where I could sell a put and still have a backup plan if I should get assigned at the last minute.  I've seen Mike Khouw do it enough that I should know by now how put spreads work.  But somehow, I only paid attention half-heartedly - until today.  

Perhaps these opportunities don't come around very often, but when they do, they could be really cool.  I have to hang ten here and not get scared out of the trade by paper losses.  The point is to wait until I get assigned (or not) and then throw down a Full House in the form of my SPY 165.50 puts that expire one week later.  I hope I've got it right this time!  

Shockingly, in spite of a Nikkei that fell -5.15% overnight, the US stock rally marched onwards and upwards, undeterred by weaker than expected Unemployment Claims and Pending Home Sales.  Even my Japanese bank calls didn't get hit much, but my EWJ puts didn't pop much either.

The market has a blindspot, but who am I to judge?  

-0.03% SBA
+1.24% Roth IRA

+0.14% DJIA
+0.69% Nasdaq
+0.37% S&P 

+0.45% FTSE
+0.32% Eurofirst
-5.15% Nikkei
-0.27% Shanghai
+0.34% SENSEX
-0.31% Hang Seng

+0.58% WTI
-0.23% Brent
+1.54% Gold
+0.47% Copper
-1.43% Corn

+0.83% EUR/USD
+0.67% GBP/USD

+0.19% DJT
-2.09% VIX

00.00% 10-Year US Treasury Notes

Eureka! Sold SPY Jun 07 '13 $167 Puts @ $1.88 + Bought SPY Jun 14 '13 $165.50 Puts @ $1.59...

I think I finally understand put spreads!

Net credit of $0.29... 

1.If assigned, entry point would be 165.12, in which case I have 165.5 puts

2.If unassigned, I would bank $0.29 per share...

I Got Burned & I Didn't Even Learn...

I was guilty of not knowing whether I made or lost money on my first SPY put vertical spread and boy was it a real economiss.  Somehow, the 'credit' I collected confused me, but it turned out as soon as I got into the position, it had turned against me.  I should know by now that there's no free lunch.

After another experience of jumping in front of a bulldozer to collect pennies, I think it's time to step away from the SPY for a while.  It's been a loss-leader for me and if I want to get rid of losses, that's where I have to start.  Good thing I was not approved for straddles!  It looks like such a compelling position, but I must say I don't understand the risks.  

I'll keep it simple from now on, but at the same time, I want to find out how money gets made with SPY vertical spreads.  When does it work?  Why didn't it work when I decided to jump on the bandwagon?

I kind of want to go away until Santa comes along, but I've still got a bunch of calls going on.

Believe it or not, I ended up with gains on my accounts after taking some losses, but I'm more concerned about increasing bankable gains and minimising haircuts.  A day with bankable gains and a paper loss is preferable for me, but ideally, I'd like both bankable gains and paper gains please...


+1.88% SBA
+0.15% Roth IRA

-0.69% DJIA
-0.61% Nasdaq
-0.70% S&P 

-1.99% FTSE
-1.84% Eurofirst
+0.10% Nikkei
+0.12% Shanghai
-0.07% SENSEX
-1.61% Hang Seng

-1.94% WTI
-1.74% Brent
00.00% Gold
-0.91% Copper
-0.15% Corn

+0.68% EUR/USD
+0.59% GBP/USD
-1.22% USD/JPY
-0.51% EUR/JPY

-1.06% DJT
+2.42% VIX

-0.52% 10-Year US Treasury Notes

Mike Khouw, Since You're In The Know...

What the sell did I do wrong??