Discretionary Trading
Now Reading
It’s Aliiiiivee!!!
53

It’s Aliiiiivee!!!

by The MoleApril 15, 2009

UPDATE 3:00pm EDT: Fujisan cooked up a new option monstrosity genetically engineered to leverage from ISRG – a known public offender and high flyer:

I mean – look at this thing – it’s a monster!!

It’s aliiiive – alliiiiiive I say!! Mmmwuuuaahaahaaaaaa!!!!

Okay, I just found my meds – much better now. Anyway, this is what she said:

I’m going with HungryNewt’s tarzan strategy (i.e., ATM calendar + protective May Strangle).  This would be a perfect strategy for a high flyer like ISRG.  The only drawback is that it takes more capital, but nonetheless, this probably works the best.  We are finally getting a good (male) spread trader in this site.

I don’t know who this hungry newt is but he better stay away from stash of MREs:

If he as much as glances at them I’ll send over my friend Burt Gummer to kick his ass:

Alright, so that’s on the menu today:

  • Appetizer: ATM Calendar Spread on HOG – execute before the close TODAY.
  • Entree: Frankenstein Spread on ISRG (see above) – not sure but I think we execute today before the close TOMORROW. Plus a side order of GOOG served in the same configuration TOMORROW.
  • Desert: ATM Calendar Spread on BBT – execute before the close TOMORROW.

I looked at the chart and it’s not clear when exactly ISRG reports – it’s sometime tomorrow. If someone knows the exact timing I will update this post with the time to execute this monstrosity.

UPDATE 3:30pm EST: Okay, it is almost time. Annamall recommended to buy a HOG put calendar and I tested actually both sides:

That’s hers with volatility decreasing in 2.5% intervals.

That’s the call calendar equivalent – seemingly favoring the bearish side.

And that is a combo – hey, why not? 😉

Anyway, BBT recently had good earnings as well, so I guess a PUT calendar would be of order as well…

UPDATE 3:40pm EDT: ONLY BUY HOG CALENDAR TODAY – ALL THE OTHERS ARE TOMORROW!!!

UPDATE 3:48pm EDT: If you want to know where my GLD line in the sand is…

…. it’s somewhere in that area highlighted in yella’ – not going to tell you where exactly otherwise those MM biatches are most definitely going to push the tape a few ticks above 😉

UPDATE 3:57pm EDT: I guess we got our {b} wave – very nice. Don’t get too bullish here now folks – yeah we might bust higher but the wave count would look best if we drop further from here to about 830 – 820. Of course if we breach 864.31 it’s all over and we bust higher.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c

  • http://www.hotoptionbabe.com Anna

    I am cranking on my BWB on Goog!! sweet…did you do the 16 strike Call Calender?

  • BigHouse(Aka Mr Vix)

    Come on FAS get to 8.50

  • emperorunc

    I am new to EWT, so please excuse my noobness, but 2 looks like it was a zig-zag, shouldn't 4 then be a flat?

  • mrclam

    ISRG earnings are released at noon. conference call at 4:30PM, all EDT.

  • annamall

    Put on HOG Calendar May/April 17.50 put spread. Love Fusjians spread, but I will stick with less risk OTM Bullish Butterfly. And god LOOK @ GS.
    Up almost 6$
    Glad I bought calls this a.m. Closed out CME for 3.10 profit per call option, no need to get greedy.. 🙂

  • http://www.aggressivelyuninformed.com nepharis

    Mole,

    Not sure if you've mentioned or addressed this at all, but have you considered running a Zero for the /NQ? I'm assuming it's portable between ES+SPY and NQ+QQQQ? Anyway, just a thought. Cheers!

  • BigHouse(Aka Mr Vix)

    weeeeeeeeee FAS at 8.45 :))))

  • molecool

    Possibility – not a necessity. But we didn't really get much of a 2 in the first place, so your guess is as good as mine.

  • katzo7

    I see it.

  • Fujisan

    Mole,

    I checked the schedule on TOS and HOG is the only one which comes out after today's close. BBT and ISRG are coming out after tomorrow's close, so there is no need to put it on now.

  • MyLifeMyTrade

    zero saying that the move up in past 30 minutes or so is fake…

  • annamall

    Here is a screenshot of my HOG put calender spread
    http://www.screencast.com/users/Annamall/folder

  • Mastachopchop

    You sure its released at noon? Their Q4 earnings were released after the market close on Jan 22nd.

  • molecool

    Regarding HOG: You are expecting HOG to rally higher or why are you buying the puts calendar? I tested with the 16 Call calendar and it seems to do better on a drop. Just checking…

    Is there a calendar combo you recommend that covers both sides? Maybe both I guess…

  • ZigZag

    SPX daily bearish di ver gence.

    http://tinyurl.com/dbc7y9

  • annamall

    no just happy with my profit on it for now.

  • annamall

    I am just feeling it will beat expectations by a bit. that was why.
    It would be a bad idea to do both!

  • http://gemstowear.etsy.com Jan

    Lololololo…I could use some of ole Burts ammo about now.

    Fujisan…..that is some pretty intimidating strategy you have there!! Good luck!

  • katzo7

    Any puts look go to you on CME?

  • HungryNewt

    Yay! I made the front page! woohoo! 🙂
    FYI, if you're relatively delta neutral on GOOG then you could implement the same strategy outlined above regarding ISRG.

  • molecool

    That would be tomorrow though – they report at the close tomorrow so I assume we wait until then?

  • molecool

    GOT IT – will change it now.

  • HungryNewt

    yeah we might as well wait. I'm in no hurry to jump into GOOG today… we might be able to pick up some good option fills throughout the day tomorrow as people place their bets.

  • innatedc

    THat looks like your ISRG calendar….

  • lester

    fake or not I stopped out of my May Puts

  • annamall

    Thank DR J for that on Goog, did you hear it Kiersten?

  • BigHouse(Aka Mr Vix)

    Sold my FAShit at 8.60 weeeeeeeeee

  • annamall

    Katzo, I broke down and bought more CME calls!! when it was up only .42 awesome!

  • molecool

    That's what I'll do for shits and giggles. Call it the 'evil mole spread' 🙂

  • annamall

    Oops you're right copied wrong link, will correct.

  • katzo7

    Ok, looks to me like a good candidate for puts, you don't agree?

  • annamall

    Correction on HOG Calendar spread (sorry)http://www.screencast.com/users/Annamall/folders/Jing/media/91cd8709-b82b-40e0-a977-82dbff87e725

  • annamall

    No way…I am cranking on the calls up another 3.00 points per option….will do trailing stop

  • BigHouse(Aka Mr Vix)

    FAS now at 8.92 lol .Sold to early rats

  • guitarlover

    Another option to play HOG earnings:

    http://www.screencast.com/users/MGN/folders/Mark

  • mrclam

    hmm, that's what google finance was showing, dunno if i missed something.

  • annamall

    Nice G-Man!

  • annamall

    I tried to get both done, but only the 17.50 filled ah well.

  • disrespekt

    hell of a move for UTTER lack of participation…+16 handles w/ a dead flat ZLI?

  • Keirsten

    WOO HOO! That was a sweet ride today.

  • molecool

    I got both – had to increase the debit by two bucks – no big deal.

  • molecool

    No, I'm waiting for the Tarzan so it's on the menu for tomorrow.

  • Fujisan

    Oh, you should have posted earlier so that other people could look at it before the close.

  • guitarlover

    Yes, sure. I didn't figure it out until right before the close however. I like that it has little risk on the upside and plenty of downside room.

  • guitarlover

    Thanks! I'm learning little by little…

  • annamall

    IT sure was sweetie. Glad I bought the Google Butterfly this a.m. Glad you
    had a good ride too, let's see if we can keep the ride going tomorrow!

  • annamall

    What a great evil plan!

  • annamall

    BTW Let's compare the 17.50 to the 16.00 tomorrow to see which worked out
    better,.

  • Matador11235

    That is one amazing ISRG spread, what do you call it Mt Fuji? It looks like there is no way to loose money if you go flat on Monday, is that right? Too bad I don't have my new accnt funded yet 🙁 I'm having lots of fun playing with the TOS platform though, its like butta.

  • Fujisan

    It sure looke like Mt. Fuji, doesn't it? I call this “Tarzan” strategy – I didn't come up with a naming.

  • dadude

    Have any of you heard of the PCCRC – Put Call Calendar Ratio Combination? If not check it out here.

    http://stockoftheday.blogspot.com/

  • Fujisan

    It sure looke like Mt. Fuji, doesn't it? I call this “Tarzan” strategy – I didn't come up with a naming.

  • dadude

    Have any of you heard of the PCCRC – Put Call Calendar Ratio Combination? If not check it out here.

    http://stockoftheday.blogspot.com/