The market is closed on Monday and I am hanging on to PCLN until Tuesday to capture the additional 3 days of Theta – which will almost double my profit from today's level.

- Jeff

Would it be too greedy to stay in until Tuesday AM since earnings aren't until after bell? Maybe if it moves more to the middle of the tent on Tuesday.

RIMM is looking pretty good lately. Even is up today when everything else is down.

I completely agree with you. Anybody who thinks he/she can predict a direction in this current market is just joking. Good to see higher volatility coming back. Bodes well for us net premium sellers. I am also doing calendars and butterflies in addition to ICs (not legging in). Also waiting to do a GS Calendar for Mar/Apr.

Jay

Glad your PCLN is working out well – so is mine!

I have been drifting away from Credit Spreads and ICs mainly because of the market. It's hard to determine direction right now and Calendars are easier to adjust if conditions change. Volatility is high (well, at least higher than it has been) and prices appear range bound and consolidating with wild swings up and down. So for now, Calendars/Double Calendars are a first choice.

I am still holding off on Goldman. I am lining up potential MAR/APR trades right now.

- Jeff

Well Goldman is up giving you an entry close to strike.

Beside you can always split the difference by splitting your buy between the strikes. ie: 2 at 150 and 2 at 155.

I don't really understand the neutral strategy, like Jeff I also usually have an opinion and would rather slightly lean that way. To me the Calendar, especially the double calendar is more about choosing a range rather than a neutral approach.

The other problem with indexes (not that I don't like and use them as well) is that their premiums can be lackluster.

As for PCLN it is working out very well upover 10% in just two days with Theta ready to give me a big jolt tomorrow.

Jeff, are leaning much more to calendars now, I don't see you doing any Iron Condors?

-Bruce

You make a very good point about GS, which is why I wanted to wait a day or two so that I can determine the short-term trend and/or closer to the strike price.

I'm also a directional trader (just my style that I can't seem to suppress) so I frequently like to bias calendars towards my anticipated price direction. Theoretically, as it gets closer to expiration and theta is increasing, the price is moving towards delta neutral.

- Jeff

Jay

- Jeff

The 155/150 Dbl Calendar puts the current price ($152.62) right in the middle of your tent.

If you do ten of each (about $4,700 at risk) you could generate $37 of Theta a day. Of course that would increase to $47 a day a week later and $63 a week after that.

It sure beats leaving $15,000 at risk with 100 shares of GS, especially if you can be three weeks in and skadattle .

I like the idea of legging in because if start with a single calendar tent you can let the market tell you which strike to select for your second leg.

My undecided factor is what is the correct entry date. Tomorrow would be 37 days before March expiration…seems reasonable to me.