Open positions and P/L update


Since the Jobs report was released it has been a parabolic move to the upside on the SPX.   The move has affected all of our current open positions greatly.  Two of the current open positions are now in the money.

We Rolled some of our open positions further out to give the market some time to take a breather.  Hopefully which will lead to our positions being out of the money again.

Trades that were ROLLED:

1620/1625 was rolled again to May weekly options expiring on 5/24 for .60 debit

1635/1630 Monthly May options were rolled to June to 1645/1650 for .05 credit

1630/1635 spread from this week was rolled to 5/24 for 1.45 credit


I will be leaving for Europe later today and will not be able to post as much for the next two weeks!  So no new trades for the next two weeks.  I will periodically try to post some updates on our current trades when I get some downtime in Europe.

I will leave you with an interesting chart on the /ES (SPX futures) from the



SPX trade 22

Trade was made Friday. Sorry bout the late post. One can get the same or better premium on this spread tomorrow.

-4 1660/1665 Spx call spread

.50 credit per contract

.12 delta @ time of open

Expires 5/31/2013

I also got a little worried and rolled my 1620/1625 spread from last week to this. It would have expired, but I didn’t want to take the chance. I got an extra  .80 credit per contract to roll it to this week.

I will probably have to roll it again to end of May.


Updated Deltas on open positions

1620/1625 call spread expiring this Friday

95% probability of success as of today

1630/1635 call spread expiring next Friday

93% probability of success as of today

1635/1640 call spread expiring may 16th

91% probability of success as of today

1645/1640 call spread expiring Friday, 5/24

91% probability of success as of today

Big job report Friday will most definitely affect the deltas on these positions.





Why I love me some Amex Membership rewards

A lot of people know I am a big fan of American Express (Amex) — I love their customer service, protection, and rewards. However, Amex gives only 1 point per dollar spend on most of their charge cards.

They have 3 charge cards:


AMEX GOLD Premier Rewards

AMEX Platinum

In this post, I am going to show you a way you can get up to 4+ points per dollar on any of the 3 Amex charge cards!!

Step 1:

Transfer your membership points earned into an airline’s reward program.


Step 2:

Wait for a special offer from one of the airlines listed that you are interested in. Throughout the year, airlines on this list offer transfer specials like “for every 1 membership point you transfer you get 1.5 points” on their rewards program.

The current special offer is from British Airways. They fly direct to London and many European cities from Houston, where I live. I would like to take advantage of this offer. Their offer: 1.35 British Airways Avios for every 1 membership rewards points transferred.


Step 3:

So, how many points to transfer? I am going to give you an example using this British Airways’s transfer offer. I want to fly roundtrip from Houston to London on Business Class. To do that it costs 50,000 British Airways Avios each way (plus taxes) – I’m looking at 100,000 British Airways Avios points to get it done.

So I need: 100,000 Avios / 1.35 = 74,075 membership rewards points.

74,075 membership points is all I will need to get 100,000 British Airways Avios miles.

Step 4:

Create an British Airways Avios free membership profile on their website. Then, call Amex customer service and have them transfer the points to British Airways.

How much bang for your buck did you get?

Using the card’s basic 1:1 points per dollar spent I get about $740.75 in value if I decide to cash the points into gift cards. 10,000 membership rewards points gets you a $100 gift card. This is what most people do, and it’s the worst thing you can do with your points.


Here you see that a round trip ticket from Houston to London on Business Class is worth about $3,225 not including the taxes. This is what we saved by using 100,000 British Airways Avios miles.

So, how much bang for our buck did we get???

$3,225 (money we saved ) / $740.75 (what normal conversion rate of the points are) = 4.35!!!

So, we got 4.35 points per $1 spent on our Amex!!!

Screen shot 2013-04-30 at 8.15.13 PM

Apple & RSI

When Apple’s RSI goes to 30 or below….


SPX trade 21

-4 1630/1635 call spread

.30 credit

.09 delta

Expires next Friday, May 10th



SPX trade 20

-4 1645/1650 call spread

.35 gross credit

.09 delta

Expiration on Friday, May 24th

Lets see if market can create a new all time high and break out past 1597! Good luck to all!