{"id":16019,"date":"2011-11-30T19:00:00","date_gmt":"2011-11-30T19:00:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/boring-trades-update-11-30-11\/16019\/"},"modified":"2011-11-30T19:00:00","modified_gmt":"2011-11-30T19:00:00","slug":"boring-trades-update-11-30-11","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/boring-trades-update-11-30-11\/16019\/","title":{"rendered":"Boring Trades Update 11\/30\/11"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><br \/>\n<!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><br \/>\n<!--\/mfunc--><\/p>\n<p>When I began writing this \u201c<strong>Boring Trades<\/strong>\u201d series, I did not envision how <span style=\"text-decoration: underline;\">truly boring<\/span> it would become. Frankly, I was quietly hoping that at least one of my trades would go horribly wrong, so that I could portray some of the many appropriate coping strategies available to option traders. I guess I shouldn\u2019t complain, given that every one of my trades is now in profitable territory.<\/p>\n<p>Despite all of the turmoil in Europe, Occupy Wall Streetprotests, Israel\u2019s purported plan to attack Iran, and the U.S. Super-Committee\u2019s failure to act on a debt plan, the VIX has remained fairly steady in the low 30\u2019s. The end result is that my <strong>Short Straddle<\/strong> on the VXX ETN has continued to profit due to time decay, as the share price has only fallen $2, out of the $11 required to cause this trade to become unprofitable.<\/p>\n<p>The trade as opened on November 16:<\/p>\n<p><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 VXX $47 Dec. 17 \u201911 CALL @$5.00<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 <span style=\"color: #3366ff;\"><a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=VXX\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #3366ff;\">VXX<\/span><\/a><\/span> $47 Dec. 17 \u201911 PUT @$6.25<\/li>\n<\/ul>\n<p>The trade as of the close on November 29:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 VXX $47 Dec. 17 \u201911 CALL now trading at $3.45<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 VXX $47 Dec. 17 \u201911 PUT now trading at $3.90<\/li>\n<\/ul>\n<p><strong><span style=\"text-decoration: underline;\">Unrealized gains to date: $390.00<\/span><\/strong><\/p>\n<p>I had anticipated a decline in the S&amp;P, and was looking for support near the 1100 level. Had such a scenario played out, I would have been required to buy into the SPY ETF at $110. Again, my <strong>Naked Put<\/strong> has survived another week without any required action on my part. In fact, the small unrealized loss, which was apparent in my previous update, was replaced by a nice unrealized gain when the S&amp;P started pushing 1200 this week; \u201cBoring, but profitable!\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>The trade as opened on November 16:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 <span style=\"color: #3366ff;\"><a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=SPY\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #3366ff;\">SPY<\/span><\/a><\/span> $110 Jan. 21 \u201912 PUT @$2.44<\/li>\n<\/ul>\n<p>The trade as of the close on November 29:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 1 SPY $110 Jan. 21 \u201912 PUT now trading at $2.26<\/li>\n<\/ul>\n<p><strong><span style=\"text-decoration: underline;\">Unrealized gains to date: $180<\/span><\/strong><\/p>\n<p>For the second week running, the best performing trade in my hypothetical portfolio was one inspired by the <span style=\"color: #3366ff;\"><a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">silver<\/a> market has caused shares of SLW to fall below the $31 level; and the trade has continued to increase its profitability. Who would have thought that a <strong>Vertical Spread<\/strong> on <a href=\"https:\/\/thestockmarketwatch.com\/metal\/silver-price.aspx\">silver<\/a> could put so many shiny presents under the Christmas tree? <span id=\"more-10053\"><\/span>This trade has now shown nearly one-third of its potential $3,000 profit, so I will need to re-evaluate my position over the next 7 days to decide whether to take the profit or risk losing it to greed.<\/span><\/p>\n<p>The trade as opened on November 16:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LONG 10 SLW $35 Dec. 17 \u201911 PUT @$2.22<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 10 SLW $32 Dec. 17 \u201911 PUT @$1.04<\/li>\n<\/ul>\n<p>The trade as of the close on November 29:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LONG 10 <span style=\"color: #3366ff;\"><a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=SLW\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #3366ff;\">SLW<\/span><\/a><\/span> $35 Dec. 17 \u201911 PUT now trading at $3.90<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 10 SLW $32 Dec. 17 \u201911 PUT now trading at $1.79<\/li>\n<\/ul>\n<p><strong><span style=\"text-decoration: underline;\">Unrealized gains to date: $930.00<\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>My other astrology inspired trade is an attempt to capture a near term drop in oil prices, followed by a longer term bounce. The <strong>Calendar Spread<\/strong> has performed as expected for a second week, with USO shares continuing to hover around $38. With the short position having lost about half of its original value, the price action over the next 7 days will determine whether I keep that portion of the trade open through expiration.<\/p>\n<p>The trade as opened on November 16:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 10 <span style=\"color: #3366ff;\"><a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=USO\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #3366ff;\">USO<\/span><\/a><\/span> $38 Dec. 17 \u201911 CALL @$2.38<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LONG 10 USO $38 Jan. 21 \u201912 CALL @ $3.20<\/li>\n<\/ul>\n<p>The trade as of the close on November 29:<\/p>\n<ul>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 SHORT 10 USO $38 Dec. 17 \u201911 CALL now trading at $1.52<\/li>\n<li>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 LONG 10 USO $38 Jan. 21 \u201912 CALL now trading at $2.55<\/li>\n<\/ul>\n<p><strong><span style=\"text-decoration: underline;\">Unrealized gains to date: $210.00<\/span><\/strong><\/p>\n<p>Best wishes to all; I\u2019ll post another boring update next week. Should you have any questions about these and other option strategies, feel free to ask in the comment section below.<\/p>\n<p style=\"text-align: center;\">Related Posts<\/p>\n<p style=\"text-align: center;\"><span style=\"color: #3366ff;\"><a title=\"Permanent Link to Boring Trades \u2013 Weekly Update (Nov 21)\" href=\"http:\/\/www.zentrader.ca\/blog\/?p=9969\" rel=\"bookmark noopener\" target=\"_blank\"><span style=\"color: #3366ff;\">Boring Trades \u2013 Weekly Update (Nov 21)<\/span><\/a><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #3366ff;\"><a title=\"Permanent Link to Boring Trades for a Crazy Market\" href=\"http:\/\/www.zentrader.ca\/blog\/?p=9937\" rel=\"bookmark noopener\" target=\"_blank\"><span style=\"color: #3366ff;\">Boring Trades for a Crazy Market<\/span><\/a><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #3366ff;\"><a title=\"Permanent Link to Are Naked Puts Risky Business? (Part 1)\" href=\"http:\/\/www.zentrader.ca\/blog\/?p=9051\" rel=\"bookmark noopener\" target=\"_blank\"><span style=\"color: #3366ff;\">Are Naked Puts Risky Business? (Part 1)<\/span><\/a><\/span><\/p>\n<p><a href=\"http:\/\/www.zentrader.ca\/blog\/?p=10053\" target=\"_blank\" rel=\"noopener\">Read more here<\/a><\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/why-the-markets-rallied-today\/16037\"><br \/>\nWhy The Markets Rallied Today<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/boring-trades-update-113011\/16019\"><br \/>\nBoring Trades Update 11\/30\/11<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/4-reasons-to-remain-bearish\/15956\"><br \/>\n4 Reasons To Remain Bearish<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/confidence-doesn8217t-magically-reappear\/15853\"><br \/>\nConfidence Doesn&#8217;t Magically Reappear<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/8220brace-for-economic-downturn8221\/15758\"><br \/>\n&#8220;Brace for Economic Downturn&#8221;<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/you-don8217t-have-to-be-nostradamus8230\/15755\"><br \/>\nYou Don&#8217;t Have To Be Nostradamus&#8230;<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/hot-stocks-to-watch\/upside-targets-for-us-amp-canadian-markets\/15742\"><br \/>\nUpside Targets For US &amp;amp; Canadian Markets<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n.<\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Zen Trader <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>When I began writing this \u201cBoring Trades\u201d series, I did not envision how truly boring it would become. Frankly, I [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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