Option Volume Spikes for February 26

SymbolStrikeVolumeOpen Int
AAPL FebW4 130 Calls 130 107621 35699
AAPL FebW4 131 Calls 131 89053 23907
AAPL FebW4 129 Calls 129 61574 16043
ZNGA Jan16 2.5 Calls 2.5 57587 16580
AAPL FebW4 128 Calls 128 50571 9637
AAPL FebW4 127 Puts 127 47484 12824
AAPL FebW4 129 Puts 129 46593 14367
RSX Mar 15 Puts 15 45727 11478
AAPL FebW4 126 Puts 126 34902 11032
C MarW2 53 Calls 53 30845 634
AAPL FebW4 127 Calls 127 27453 5060
GLD Sep 150 Calls 150 25915 1139
RIG Apr 16 Puts 16 21271 552
DAR Mar 17 Puts 17 20681 6210
GRPN MarW1 8.5 Calls 8.5 19605 1718
CHK Apr 17 Puts 17 17789 4057
JCP FebW4 9.5 Calls 9.5 17247 3537
USO Apr 13 Puts 13 16222 3785
USO MarW1 18 Calls 18 13936 1238
TSLA FebW4 210 Calls 210 13270 3244

Short Call Ideas for February 26

SymbolStrikeBidStockDays% Return
WTW Mar 20 Calls 20 0.7 17.56 23 3.98
NKTR Mar 15 Calls 15 0.4 12.99 23 3.07
WTW Mar 21 Calls 21 0.4 17.56 23 2.27
ANF Mar 27 Calls 27 0.54 24.03 23 2.24
ARCP Mar 10.5 Calls 10.5 0.2 9.23 23 2.16
QIHU Mar 52.5 Calls 52.5 1 46.99 23 2.12
ANF MarW2 27 Calls 27 0.49 24.03 16 2.03
QIHU Mar 53.5 Calls 53.5 0.8 46.99 23 1.7
P Mar 17 Calls 17 0.24 15.18 23 1.58
NKTR Mar 16 Calls 16 0.2 12.99 23 1.53
CTRP Mar 51 Calls 51 0.7 45.51 23 1.53
TZA Mar 12 Calls 12 0.16 10.67 23 1.49
CTRP MarW2 51 Calls 51 0.6 45.51 16 1.31
ANIK Mar 45 Calls 45 0.5 39.97 23 1.25
P Mar 17.5 Calls 17.5 0.17 15.18 23 1.11
INDL Mar 113 Calls 113 1.05 98.84 23 1.06
INDL Mar 115 Calls 115 1 98.84 23 1.01
SQQQ Mar 28 Calls 28 0.25 24.89 23 1
AGQ Mar 49 Calls 49 0.4 41.39 23 0.96
LOCO MarW2 28 Calls 28 0.2 24.86 16 0.8

Short Put Ideas for February 26

SymbolStrikeBidStockDays% Return
KYTH Mar 35 Puts 35 1.9 43.24 23 4.39
KNDI Mar 12.5 Puts 12.5 0.5 13.8 23 3.62
JMEI Mar 12.5 Puts 12.5 0.4 14.14 23 2.82
KNDI Mar 12 Puts 12 0.35 13.8 23 2.53
RMTI Mar 10 Puts 10 0.25 11.12 23 2.24
FNSR Mar 19 Puts 19 0.45 21.07 23 2.13
VRTX Mar 109 Puts 109 2.5 119.96 23 2.08
JCP Mar 8 Puts 8 0.19 9.12 23 2.08
VRTX Mar 108 Puts 108 2.3 119.96 23 1.91
POWR Mar 10 Puts 10 0.2 11.17 23 1.79
ZLTQ Mar 30 Puts 30 0.6 34.36 23 1.74
TOO Mar 19 Puts 19 0.35 21 23 1.66
OLED Mar 33 Puts 33 0.6 36.77 23 1.63
ACAD Mar 34 Puts 34 0.6 37.8 23 1.58
WLB Mar 26 Puts 26 0.45 29.06 23 1.54
NAV Mar 27 Puts 27 0.45 29.96 23 1.5
CIEN Mar 19 Puts 19 0.31 20.91 23 1.48
AVAV Mar 25 Puts 25 0.4 27.55 23 1.45
VEEV Mar 28 Puts 28 0.45 31.46 23 1.43
AIRM Mar 40 Puts 40 0.65 45.69 23 1.42

Current Trading Summary

As at market close 27th Feb

All trades in the red so far - especially WTW where I really took a hit on the short put. An important lesson learnt on the dangers of having naked short option positions. On the bright side, it was only 1 contract, so it could have been a lot worse. I have a lot of ground to make up but I'll keep pushing on. No more naked puts...I think I'll keep trying out the short condors though.

JCP Double Calendar -$2
KYTH Short Butterfly -$8.50
TASR Short Confor -$21.90
WTW Short Put -$440.70
MX Double Calendat -$68


Using the Delta to Hedge Options

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The Binomial Model is the model of choice for American styled options - that is, those options where you can exercise any time up until the expiration date. Even though Black and Scholes was the original option pricing model, the Binomial Model is probably more widely used than B&S.


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