Friday, January 10, 2014

K200 Jan 09 Expiration

These are my trades for K200 09Jan14 contract.

The below chart is K200 Index Daily Chart as at 02-Dec.  Since the K200 was still climbing up with a higher high higher low, my view was still bullish.  However, I was not comfortable with the last swing low at 258.  I wanted a safer Strike lower.  Thus I picked the last resistance at 250.

I sold 5 contracts of K200 Vertical Spread 09Jan14 250.0/247.5 Put, receiving KRW 650,000.00 (before commission)

The below daily chart is as at 17-Dec.  When K200 hit pass the last swing low of 258, I wasn't too sure about my bullish view.  It is showing a lower high lower low now.

I wanted to perform adjustment to my position, however I am not too sure what to adjust.  Should I cut loss now but it still has 8 points before hitting my Short Strike at 250?  Should I roll?  This topic of adjustment is an important knowledge I need to acquire in the near future.  Anyhow, I did something.

The below Weekly chart is as at 13-Dec.  We can see that K200 is within the trading range of 230-272.50 for the last two years (2012-2013).  There is no Strike price for me to sell 230/227.5 Put Spread.  I decided to sell 272.5/270.0 Call Spread instead.  I wasn't aware that my position became Iron Condor when I sold the Call Spread.  Anyhow, this Iron Condor was in line with my Weekly trading range view.

This is the trade report for 272.5/275.0 Call Spread, which bring in KRW 275,000.00 (before commission).

The below daily chart is as at 27-Dec.  When I saw that K200 failed to break the resistance near 264, I am more convinced with my new bearish view.  I decided to sell another Call Spread.  And I don't think it even can go up beyond the last swing high at 270.

Thus, I took a trade of  Call Spread 270.0/272.5, with a credit of KRW 675,000.00 (before commission).  I wasn't aware that this 2.5pt Call Spread of 270.0/272.5 had combine with the previous 2.5pt Call Spread of 272.5/275.0 into a 5pt Call Spread of 270.0/275.0.  At the same time, it had make a realized profit of KRW 122,850.00 (USD 116.37) after commission.

The below daily chart as at 03-Jan 9.22am confirmed my bearish view.  K200 continued the big drop on 02-Jan and hit pass the last swing low of 255.5.  However, we were just 5 working days (including 03-Jan) away, I didn't think K200 will drop below 250 and 245.  Taking advantage of the high volatility in Put Options, I sold another 5 contracts of 250.0/247.5 Put Spread and 10 contracts of 245.0/242.5 Put Spread.

The additional 5 contracts of 250.0/247.5 Put Spread brought in additional KRW 550,000.00 (before commission) and the 10 contracts of 245.0/242.5 Put Spread brought in KRW 400,000.00 (before commission), totaled KRW 950,000.00 (before commission).

This is at Expiration on 9-Jan.  K200 closed at 253.63.

All contracts expired worthless.  I got to keep the full KRW 2,406,450.00 (USD 2,263.82) premium (after commission/fee) as profit.  With the realized profit, KRW 122,850.00 (USD 116.37), on 30-Dec, that will be KRW 2,529,300.00 (USD 2,380.19) for January.

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