Trading Diary: March 30th – April 2nd

by Dan April 5, 2015 8:29 pm • Commentary

Here is a quick recap of all of the trades that we initiated, closed, managed, expired and considered (Name That Trades) in the week that was March 30th to April 2nd:

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Monday March 30th:

New Trade – $INTC: Levering Up, Looking Down

Trade: INTC ($31.75) Buy to open April 10th / April 17th 30 Put Calendar for .23

Deal or no deal for ALTR, I think INTC heads right back to where it was prior to last Friday’s WSJ report of deal talk, just below $30.  This was a low risk way to play for $3o in the next 8 trading days, with the ideal scenario the stock grinds back towards $30 but this coming Friday and I own at the money puts for Q2 earnings on the cheap.

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Tuesday March 31st: 

Name That Trade – $ADBE Reader

Despite the recent disappointment on current quarter guidance, the stock has been in a massive uptrend for more than two years, and while we can not get our arms around the valuation for a company of this size, we are considering playing for a bounce back to the prior highs from a near term oversold condition.  Keyword, considering, still want to see how the stock acts just above key technical support.

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Name That Trade – $NVDA: Chips and Dips

Considering defined risk long biased entries near $20.

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Wednesday April 1st: 

Name That Trade – Thinkin Bout $MU

With the stock oversold into the print, trading at the lowest levels in nearly a year, and down 20% in 2015, we took a look at the set up into earnings and offered a couple ways to play depending on one’s existing positioning

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Trade Update – Macy’s ($M) – The Parade Rolls On

ACTION – Bought to close the M ($65.00) April 65 calls for 1.10

– Sold to open the May 70/75 2×1 call spreads at .90 (sold 2 May 70 calls at .50 for $1 total, and bought 1 May 75 call for .10)

New Position – Long the M ($65.00) May 65/70/75 call butterfly for 1.15 (currently costs 1.25)

We were worried about a break above our $65 strike and wanted to adjust to a trade that would benefit from a breakout to new highs in the coming weeks.

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Thursday April 2nd:

Please Read this, if you are a paid subscriber to RiskReversal, this is what you should be here for:

MorningWord 4/2/15: $AAPL – You Are Not Special. You’re Not a Beautiful and Unique Snowflake

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New Trade – People of $WMT

TRADE: WMT ($81.10) Buy June 80/85/90 Call Butterfly for 1.35

The stock’s pullback to the breakout level from late last year looks like an attractive entry on the long side, but $80 is a massive support level and I am not certain I would like to be long below.  The trade that I put on Friday places a stop on the downside at $80, and risks 1.5% of the underlying stock price to possibly make almost 4% on May expiration.

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Name That Trade – $TWTR: Bird Watching

Considering stock replacement / long stock alternatives.  For those who are willing to set a limit where they would buy the stock on the downside, call spread risk reversals look attractive in May which will catch their next earnings announcement.

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Friday April 3rd:

Markets closed in observance of Good Friday.