[Artelly]

Did you really mean the FB Nov 10 165 today?

Do you expect such a huge drop in the stock?

[Artelly]

Amy,
We’ll see what AAPL does over the next week. My puts @ 157.50 are for Sept 29 expiration. It would need to recover quite a bit. Yes, teddi’s latest trade was for Oct 6 148 strike … however, that post also recommends a conservative trade at 145 strike price. And AAPL has taken a significant tumble since that trade.

And yes, to roll this trade down, you will most certainly need to add more contracts … at present prices, perhaps 3-4 times as many depending how far out in time you go (careful … I think AAPL reports earnings end of Oct). So, without a bounce back in the stock, this trade may need a more longer term and a spaced out roll down.

We shall see .. let’s hope for a recovery in the next week.

Art

[Artelly]

Many thanks Larry

[Artelly]

Hi Teddi,
For those of us keeping track of your FB trades as a comparison …. can you update your profits on the reverse iron condor trade as well as the prices on the most recent 157.50/140 trade for Sept 1.

Thanks
A

[Artelly]

Hi Teddi,
Will you be able to to update you FB reverse Iron Condor “trade before earnings”?

Thanks
Art

[Artelly]

Thank you!

[Artelly]

Your post is not clear Teddi … unless you mean you will wait until tomorrow to decide about the July 21 puts? The AAL article posted is also unclear … you say in that article that you will wait until earnings on July 28 to decide … expiration is tomorrow … it would help if you were able clarify.

Thanks
Art

[Artelly]

Taking a breather from FB these days?
Art

[Artelly]

check the tool …. it has incorrect info on DAL right now .. stock price $24?

[Artelly]

Thank you for this.

Also, am I overlooking something … you had mentioned that you would create a place where we could access all the FB trades so far? Does that exist yet and also have you updated the recently closed positions as well?

Thanks
Art

[Artelly]

Hi Teddi,

Just wondering why all has gone so quiet on the FB challenge?

Earnings coming?

Thanks
A

[Artelly]

Thank you and this is what I suspected all along … you deposited 100K and were given 195K purchasing power … cash and margin.

I trade at etrade and at fidelity … I too get additional margin buying power beyond the 100k … but only to trade “fully marginable securities” … not options(or mutual funds or penny stocks) … so you see the issue … I only have 100k to work with(plus profits) and you have 195K (plus profits) … for me to trade all your suggested trades, I will need to add significant cash to the account.

Thanks for all your time and patience …and you are correct … we will watch the trades and get out soonest! Keep up your great work!!

Art

[Artelly]

Hi Teddi,

I guess I’d need to have a conversation with you really understand this.

It seems to me that you say you started with 100,000 cash and have earned 9,220 so far… but really you had 180,000 available to trade? How?

Right now you have 163,560 available to trade … how?

How do you have 54,000 in margin available with only 29,000 in cash?

I do understand margin requirements; I also know some firms work on a 10/20% formula; some on a 15/25% formula, etc. I also know that margin constantly fluctuates as the stock price goes up and down. I also know that the margin requirement on a spread can change from the set margin to a naked put margin, if the requirement is less because the stock rose so much.

You say you have 29,000 cash … and that gives you about 28,000 margin. I get that. But you also say that the spreads in the account are giving you another 26,000 margin because the stock price is so far away from the put price. Not in my accounts.

I am sure that I am frustrating you … but somehow you turned a starting 100,000 cash into 180,000 available to trade …

Art

[Artelly]

Thanks Teddi

Still trying to understand how with 100K cash to start you wound up starting with 180K … 80K of “margin”.

Art

[Artelly]

Hi Teddi,

It seems to me there are a couple of inaccuaracies?

You did close your trades for March 31 … this article says not yet … I see no open trades for March 31? Correct?

Plus one of these has March 3 instead of March 31 listed when you closed 20 contracts ..

A

[Artelly]

Thank you teddi for taking so much time and I will read things carefully … HOWEVER, I guess I am missing something still … first … which 15 long puts from yesterday? Yesterday you bought 15 April 21 $115 to create the spread for the 15 April 7 135 short … no? Did you close out the short side of this trade? I cannot find anything about that. So I, for the life of me, cannot see where those extra “15 long puts from yesterday” are? By my addition and in my account, for me to do today’s trades, which total 30 short contracts … I need to buy 30 long contracts …

Help!

Point 2 (I’ll stay on this thread so I don’t drive you crazy!) … I do understand 95% of your Margin article and am pretty clear about how margin requirements and margin available will fluctuate … HOWEVER … at both etrade and Fidelity … if I start with 100K in cash (as you did) … I do not have additional “margin” available to me above the 100K to trade options. So, once the margin requirements for all my spreads reaches 100k … I can no longer enter a trade. I have margin available to me to trade equities … but not options. You seem to have started with 100K … but also had an additional 80K “margin” available to trade options … and now you show 45K available and 135K used … this is not the case in my accounts … where is that extra margin available?

Art

[Artelly]

Teddi … see my post on the other FB thread re: 80 margin above and beyond the 100K cash?

Also, will the margin on these three new trades really be as you state? I have not entered them yet … 30 short contracts for 3 different dates (April 7, 14 21) held against 10 long contracts out at April 21 … will result in three different spreads using only 10 contracts at April 21?

Thanks
Art

[Artelly]

Hi Teddi,
Sorry if this is naive on my part. I am following your trades step by step (and we are doing great!) … the numbers you posted today confuse me a bit so please understand and explain … you started with 100K … so did I.

What do you mean by an additional 80k in margin available? At any of my firms … if I put in trades above and beyond my available trading “margin” … I get a margin call.

Are you holding additional marginally stocks in that same account which gives you the extra 80K?

Thanks
Art

[Artelly]

Am I incorrect, or is the Apple Million Dollar Challenge not up to date on all teh trades through 2016?

[Artelly]

Love the FB Challenge … it would help us if you could post anytime you close a trade early so that we can free up the trading margin as well.

Thanks so much

[Artelly]

Hi Teddi

Looks like a great tool … where is it on the site? Can find it thru the email liink, but not on the site. SORRY …. FOUND IT!

[Author]

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