Divide by Nought

Archive for February 2008

…and we’re range bound again, for the moment.

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January hurt a bit. I was bearish, but not that bearish, so, ouch. But you have to pick yourself up and take advantage of what that kind of move can do for you. In this case: high volatility and some nice juicy premiums. I’m a seller (even when I’m bullish) so I love high premiums.
One trade that was put on at around 33% volatility was this broken wing iron: IRON CONDOR SPY FEB 08 138/140/120/119 CALL/PUT. The box in the image below depicts when I got in, where expiration was, and the range that I wanted to stay within. A little iffy in the beginning of Feb, but it hung in the channel. Notice that there was more protection on the downside, so I certainly wasn’t thrilled on Feb 1st.

It’s not a killing, just good consistent income. The trade started with a 60% probability of success and the potential to yield a 30% profit, which it did. Not too bad.
SPY-080215

I’m not a broker, and I don’t make recommendations…and this trade closed yesterday, so I suppose it’s a moot point anyway.

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Saturday, February 16, 2008 at 6:23 pm

Posted in Musings, Trading

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Paperback vs. Mass Market Paperback

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The distinction is made less and less these days, but at one time there was a content, or subject matter, difference between paperbacks (aka trade paperbacks) and mass market paperbacks.  The types of books made into mass market paperbacks were generally of a more popular type.  While the content of trade paperbacks was generally reserved for more “educated” materials and literature.  At this point it’s pretty much just the physical size, materials and binding used; which are smaller and cheaper for the mass market versions.

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Friday, February 15, 2008 at 6:02 am

Posted in Musings

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