Some updates on some outstanding trades mentioned on Risk Reversal
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TRADE: AAPL (~$346) Buy the June10 weekly335 Put for 1.05
Break-Even on June10 weekly Expiration:
Upside: above 336.05 lose 1.05, bwtn 335 and 335.05 lose up to 1.05
Downside: below 334.95 have unlimited gains to zero.
June 7th: AAPL $333, the puts are 4.35 bid….I sold some at 3.20 and 4.00 this morning…..but yesterday spread half of the position (updated on Quick Hits). I sold the June10 weekly 330 Puts at 1.05, so I locked in the June10 wkly335/330 Put Spread for even money….
NOW: stock is a little lower and these are similar spot, I am selling another 1/2 of my position as the stock isn’t breaking….i am now left with a 1/4 of my original position…..time running out these are weeklies….
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TRADE: TXN buy the July 33 Put for .75 when the stock was 33.75
NOW: stock is at 32.67, the mid qtr update is tonight, I want to turn this into a put spread, sell the July 31 Put at .45, now you are only risking .30 to make 1.70.
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TRADE: NTAP ($52.07) BUY June 50/48/46 Put Fly for .22
-Buy 1 June 50 Put for 1.22
-Sell 2 June 48 Puts at 1.44 (.72 each)
-Buy 1 June 46 Puts for .43
Break-evens On June Expiration:
-50 or higher lose .22
-btwn 49.78 and 48 make up to 1.78
-at 48 make 1.78 (8x your money)
-btwn 48 and 46 you payout trails off
-46 or lower lose .22
NOW: stock is 49.70 after rallying as high as 56.00 following earnings, this was all but worthless then, and wasn’t worth selling as your commissions would have been more than the premium recouped….this can now be sold for .43…..If you have this on maybe sell half here and let the balance ride and see how sloppy these tech stocks get….
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TRADE: NFLX (~272.50) Jun10 weekly 260/250/240 put fly .80
Posted on On Quick Hits: Jun 3 2011, 11:44 AM
max gain is 9.20 if stock is 250,
max loss is .80 if stock above 260 or below 240 on next Friday’s close.
NOW: stock is 261.50 and this can be sold for 1.75, i am selling into this and will leave some on to see if we can get to that nice round number of 250…..time is running out though….
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TRADE: IBM ($167.75) Buy July 165 / 160 Put Spread for 1.30
-Buy 1 July 165 Put for 3.05 and
-Sell 1 July 160 Put at 1.75
Break-Even on July Expiration:
Upside: above 165 lose 1.30 or less than 1% of the underlying
-btwn 165 and 163.70 lose up to 1.30
-btwn 163.70 and 160 make up to 1.30
-at or below 160 make 3.70
NOW: stock is 164.45 and this put spread is worth 1.75, which is a reasonable gain but the stock hasn’t really broken yet……but it will keep this on, but as always trade around things, if you think the market is going to rally and this didn’t really participate on the downside then you may want to sell half and leave some ammo to re-establish a position…..
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