Update of my option trades - IWM Double Calendar and SPY Iron Condor

Dear fellow options traders,

Updates for the option positions established on 15/3/13 :

On 15/3/13, I've sold 5 contracts of SPY Iron Condor. Capital outlay = $625. Possible credit = $375.

On 1/4/13, the limit order to buy back the SPY Apr13 151/149 at $0.10 put spread was activated.

What's remained was to wait for the limit order for the SPY Apr13 158/160 call spread to be triggered. But by 13/4/13, which was 2 days before expiration, the limit order was still not activated. I thus have to buy back the SPY Apr13 158/160 call spread at a loss of $14 per contract.

Thus, the total loss for the SPY Iron Condor position was actual breakeven but I've incurred $60 for the commissions for setting up the positions and closing the positions.


Update for the 5 contracts of IWM Double Calendar bought on 15/3/13, where capital outlay = $695. Possible credit = $480.

This was another painful lesson learned. When the price of the IWM was moving down from 12/4/13, I've set up the limit orders to sell my adjusted double calendar position established on 4/4/13 and my initial double calendar position that was established on 15/3/13.

The limit order for the adjusted double calendar position was activated but the limit order for the initial one was not.

The significant lesson learned was, the initial IWM double calendar position was in profit with at least $200 on 12/4/13, I should have just closed out the position quickly instead of depending on the limit order to do the job.

What ensued was that I watched the IWM price tumbled from 93 to 89 from 10/4/13 to 18/4/13 and my initial IWM double calendar position turned from a profitable position to a loss of more than $200.

Thus, on expiration day, I bought back my initial IWM position, for a total loss of $310 plus $100 commissions.

Lesson learned from this IWM double calendar position :

When you have registered a profit about a week or a few days before expiration, close the position. Do it manually if you have to. Don't rely too much on the limit order if you want to close out a position quickly.

The other lesson learned was, HOPE is a dirty word in trading. When your position has crossed your tolerable sell out price point, close the position at a smaller loss. Don't hope for the position to turn around, especially when there is insufficient time at your side (ie. days within expiration date).

Yours Truly,

Tony Chai

My trades so far...

Dear fellow option traders,

Here was the trade that I had established back in 15 Feb 2013 :

On 15/2/13, I sold 5 contracts of DIA Iron Condor. Have adjusted once. Bought back the Mar13 143/145 Call spread and extend the upper price range by selling 5 nos. of Mar13 144/146 Call spread.

On 11/3/13, I bought back the Mar13 137/135 Put spread at $0.05.

On 27/3/13, the DOW dropped 90 points when market opened.I bought back the Mar13 144/146 Call credit spread at $0.67 (on previous day the price closed at $1.23 because the DOW rose 110 points)

This has taught me an important lesson. I've grabbed the opportunity to close my trade with a smaller loss when it was presented to me.

Total position loss = $150 + $100 commissions.


As for the updates for the positions established on 15/3/13 :

On 15/3/13, I've sold 5 contracts of SPY Iron Condor. Capital outlay = $625. Possible credit = $375.

I've placed limit orders to buy back each leg of the credit spread. (as above)

As for the 5 contracts of IWM Double Calendar bought on 15/3/13. capital outlay = $695. Possible credit = $480.

On 4/4/13, I added another IWM Double Calendar on top of the existing one because the downside breakeven was breached :-

ie. Sold IWM Apr13 93 Put & Bought 5 IWM May13 93 Put (this position was breached).


Yours Truly,

Tony Chai

EU Bailout - Cyprus impose bank levy

Dear fellow traders,



Yours Truly,

Tony Chai

How to find the capital outlay for putting up a double calendar option trade

Dear fellow option traders,

To find out the capital outlay of putting up any trade, for instance, the double calendar - in the TOS (ThinkorSwim) platform :

1. Go to Monitor tab, select account statement.

2. Change the date view accordingly to the date that you wish to locate a specified trade

3. Select the trade that you want to check the capital outlay, right click on it, select "Analyze Duplicate Trade"

4. You'll be brought to the Analyze tab. Look at the "Price Slices" section. In the "Live" price row, look at the amount indicated under the column of "BP Effect". This will give you the capital outlay required for putting up the position, in this case, it's a double calendar position.

You will realize that for a double calendar position, the other way to know the capital outlay required would be to multiply the debit used to buy the double calendar position and multiply this amount by the no. of contracts.

Hope you find the above information useful.

By the way, the customer service at the ThinkorSwim platform is excellent. They are very knowledgeable in their trading platform and can provide you with very comprehensive steps explicitly.

Good Trading,

Tony Chai

Progress of option trades so far

Dear fellow option traders,

Here were the 2 trades that I had established last month :

Sold Iron Condor with DIA. 5 contracts. Have adjusted once. Bought back the Mar13 143/145 Call spread and extend the upper price range by selling 5 nos. of Mar13 144/146 Call spread.

On 11/3/13, bought back the Mar13 137/135 Put spread at $0.05.

As for the Double Calendar established with IWM on 16/2/13 with 5 contracts :

I sold the double calendar position at $2.01 for a profit of $170 (excluding commissions).

At the same time, established 2 new positions on 15/3/13 :

Sold Iron Condor with SPY. 5 contracts. capital outlay = $625. Possible credit = $375.

Bought Double Calendar with IWM. 5 contracts. capital outlay = $695. Possible credit = $480.


Yours Truly,

Tony Chai