Updates continue, new trade open…
Dan on June 7th, 2006
Today was quite busy so I haven’t had time to do much work on the site. I have the gallery online and integrated but the theme doesn’t work with the blog them at all. I have to find one that looks decent or figure out how to design my own.
There seems to be a bug with either the blog theme or WP that is causing a warning to come up. This is disrupting the first pageview and causing the title image to be shifted down into the tabs. It works fine on a reload. I looked at it very briefly and can disable the function if necessary but I’d rather fix it. It’s on my list of stuff to do.
On the investment front I opened a new trade yesterday. I sold a condor that expires on the 16th with a potential return of 23.6% after fees (about 6.8% of the total account). I had been putting off any trades until I opened an account with TradeStation but I felt this was a good opportunity. The trade is based on extremely high implied volatility (IV). When IV is high option premiums are high. This can potentially mean that options are overpriced, thus leading to a situation where their value decreases rapidly. Since expiration is approaching on the 16th the time value (premium) is decreasing at an increasing rate (the time value is rapidly approaching zero). So long as the stock stays between either end of the condor, which is quite likely with this trade, I make money.
I will post another update tomorrow.
