Some Trades that I am closing:
FROM MAY 24th 2011:
TRADE: COSTCO (82.30) With stock at lofty levels I agree with my Options Action friends and with the stock a little higher I bought the JUN 77.50 / 80 Put Spread for .55,
NOW: earnings were slightly disappointing and stock barely goes down….selling now for .72 with stock at 80.13…..
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From May 18, 2011:
DELL (~$16.80) Short Dated Trade: I just bought the DELL (16.80) June 16/15/14 Put Fly for .15 as I think the stock will reverse these gains over the next few weeks in what I expect to be a weak market.
NOW: stock is 15.80 and the Put Fly can be sold for small gain at .24…going to stick with the Aug Fly into the next earnings report……
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FROM MAY 17, 2011:
TRADE: NFLX (stock ~235.50) BUY June 225/215/205 Put Fly for ~1.30
-Buy 1 Jun 225 Put for 6.60
-Sell 2 Jun 215 Puts for a total of 7.60 (3.80 each)
-Buy 1 Jun 205 Put for 2.30
NOW: stock is 263.90 the Put Fly is basically worthless, maybe you could sell it for .15 but your commissions would be more than that…..this was a low conviction trade, but I have officially put this stock on my Banned list….
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From May 13,, 2011:
YHOO $16.00 TRADES I AM CONSIDERING:
TRADE 1: YHOO (~16.20) BUY the Jun 17/ 18 / 19 Call Butterfly for .10
-Buy 1 Jun 17 call for .47
-Sell 2 June 18 calls at .54 (.27 each)
-Buy 1 June 19 call for .15
NOW: this fly is basically worthless…..The analyst day came and went and actually the company’s answers were disappointing as it relates to Alipay. Stock looks vulnerable at 16.00…..
TRADE 2: YHOO (stock 16.25) Buy Jun 15 /17 Risk Reversal for ~.20
-Sell Jun 15 Put at .30 and
-Buy Jun 17 Call for .50
NOW: can sell this for a .15-.20 loss..see above. I still liked this structure compared to buying the stock and a .20 loss seems ok given the event and the potential for movement around it….
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FROM MAY 4, 2011:
TRADE; ERTS (stock 20.16) BUY THE SEPT 17 /22 Risk Reversal for ~.45
-Sell Sept 17 Put at .50 (~20 delta option at 36.41 vol)
-Buy Sept 22 Call for .95 (~37 delta option at 32.74 vol)
NOW: stock is 23.74, this structure can be sold at 2.65, I want to at least cover the Sept 17 put at .16 and then either take the profit in the call or sell a higher strike call against it to lock in some gains……
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From APR 29th 2011:
RIMM stock ref 49.00
BUY JULY 45/40/35 Put Fly for .73
-Buy 1 July 45 Put for 1.75
-Sell 2 July 40 Puts FOR TOTAL 1.20 (.61 each)
-Buy 1 July 35 Put for .20
NOW: closing for 1.30….My tune hasn’t changed on the story longer term, but the stock is very oversold…..gonna take the money and run and look to express this bearish view on a longer term basis…..
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FROM Apr 8, 2011:
TRADE: SPY (ref 133.32) BUY the JUNE quarterly (expires June 30th) 136 / 138 / 140 Call ButterFly for ~.30
-Buy 1 Jun qrtly 136 Call for 2.64
-Sell 2 Jun qrtly 138 Calls for a total of 3.46 (1.73 each)
-Buy 1 Jun qrtly 140 Call for 1.12
Break-Evens on June 30th Expiration: [136 lose .30, 138 make 1.70 and 140 lose .30]
NOW: stock 132.90 worth .25, sell for small loss…..
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FROM MARCH 24th:
Sprint $4.50 TRADE: Sell the Jan12 4 Put to buy the Jan12 4.50 call and Sell the Jan13 7.50 call
-Sell 1 Jan12 4 Put at .43
-Buy 1 Jan12 4.5 call for .72
-Sell 1 Jan13 7.5 call at .34
Structure results in a .05 credit,
NOW: you can take this off for a .70 profit…..the stock moved and I am going to look to a different structure as I want to look to a $8-10 deal price…..