Put Ratio GE

٢ نوفمبر ٢٠١٧

I am calling this a neutral trade because it is placed for 0 or a small credit and sits well outside price.......in other words "I will get involved *IF* price falls enough but am content to just wait for better opportunities" GE sets up well with Implied Volatility Rank (IVR) 82% and a trend line that looks like a mayday call. I went out further than normal with 78 DTE. to make the metrics work a little better and still cautious about the dividend cut. This will fit well into the dividend calendar aspect of my portfolio listed under my trade plan in the comments. GE has a oil component that makes it less appealing but this would be a possible first position (200 sh out of 500 possible) to start to take a entry with the risk of rising interest rates in the future and all indicies A.T.H. Breakeven would be 16 and the trade is most profitable if it pins at 17 but we shall see what happens.......should it break below 14 I will look to roll the puts out but not down and probably just take the shares should it drop to the 15 level.

٩ ديسمبر ٢٠١٧

ملاحظة

So yesterday I sold the 2 long puts at 18 for .83 cents each. With all the news of layoffs and insiders buying shares I am changing my assumption a little here that GE may not fall as far as I originally thought. I am left with 4 short puts at 17 and will wait for those to expire or roll out in time if they are breached. My last experience with a company that slashed its divi was KMI who went from 39 to 15. I have considered buying some 16 puts (long) in order to make a backspread if GE were to get a small bounce here.......and give up some of my gains for a little insurance for a better cost basis? Not sure if I want to or not. Seems the market is in super bull mode with VIX crushed and oil making highs....what am I afraid of?

١٢ ديسمبر ٢٠١٧

ملاحظة

So today I bought 4 puts at the 16 strike with the same expiry for the 17 short puts 1 for 1. My thinking for this is that the X-mas rally will be all fine and dandy but earnings are the day of expiry (which slows theta decay) and Jan. may be a bit rockier if people start to take profits. This started as a ratio but longer dated than most. The long puts I bought for 40 and sold for 80 I am willing to give back for half in case GE gets dropped from the S&P (only stocks that go up are allowed in there) but now leaves the additional 80 cents from the 4 short puts to be collected. I have no problem buying stock at 17 but with all the accounting shenanigans and divi cut I could see this hitting 14 if the market started to roll over. So instead of making 160 I can now only make 120........I know high stakes.....lol but staying small and staying objective is what I am going to be doing all next year as best I can.

١١ يونيو ٢٠١٨

ملاحظة

Trade closed: Apologies for not updating this trade. I tried to "leg" into put ratio trades in GE but most of the premium has now dried up and the trade has become just directional. I have no more open trades in GE and have lost track of everything I have done in here but it was not wildly profitable. I think GE can go much lower if the overall market turns but will make a contrarian trade to the long side if the premium is worth it. With all equities trading at near all time highs I may miss this name bouncing back......but not worried or wanting to get involved heavily unless we get to single digits.

١٣ ديسمبر ٢٠١٨

ملاحظة

Trade back open. Sold 5 strike puts out until June 19 for .24 each (this was a while ago) put ratios could no longer be placed as volatility just seemed to dry up. Hope this doesn't go bankrupt but 5 lot is considered 1/3 position.