Considering Our Options – June Bugs: $DE, $GPRO & $WMT

by CC June 15, 2015 2:52 pm • Commentary

We have several trades expiring this week that I wanted to check in on and see what can be done as far as management what what we’re looking for as far as when to close.

The first I want to look at is GPRO which is so close to being a great trade but is really annoying lately. Here was the original trade from

Trade: GPRO ($59) Buy to Open June regular 59/55/51 Put Fly for 1.00

-Buy 1 June 59 Put for 1.90

-Sell 2 June 55 Puts at .50 each or 1.00 total

-Buy 1 June 51 Put for .10

This is worth about what we paid for it. It’s been profitable and has even spent a few second down below 56 the past few trading days. But each time it’s spiked quickly back towards these breakeven levels:

[caption id="attachment_54485" align="aligncenter" width="775"]Screen Shot 2015-06-15 at 12.31.28 PM 5 day GRPO chart from LiveVol Pro[/caption]

For instance, this morning it printed down near 65.50 but quickly found buyers and is now annoyingly up on the day.We’ve barely had a chance to take it off for a nice profit in these instances. If we see another down open we’ll look to quickly close as there seems to be a pattern on the opening prints. Our breakeven is at 58 on this trade so we’ll have to keep an eye on it from here on out if we don’t see another gap lower as we’d want to at least get out for even.

The next one to look at is in Deere (DE). This too has been really close to being a nice winner the past few trading days but we’ve also needed to act quickly in order to lock that in. Here was the trade from

TRADE – Buy the DE ($94.10) June 95/91/87 put fly for 1.10

– Buy 1 June 95 put for 1.95

– Sell 2 June 91 puts at .50 (1.00 total)

– Buy 1 June 87 put for .15

This trade is currently worth a little over 2.00 so a nice winner but it’s been really close to being a great trade. We have some room in this one as our intrinsic breakeven is 93.90. It’s shown some late day selling the last few days so hopefully we see that again today or tomorrow and we can take advantage of the stock being closer to our short strike of 91:

[caption id="attachment_54486" align="aligncenter" width="775"]Screen Shot 2015-06-15 at 12.39.09 PM 5 day DE chart from LiveVol Pro[/caption]

The final trade I want to look at isn’t going great and we’re likely at the whims of the broader market on this one into Friday. Here was the trade in Walmart (WMT)

Trade: WMT ($74.90) Buy June 73 / 75 / 77 Call Fly for .75

-Buy 1 June 73 call for 2.21

-Sell 2 June 75 calls at .84 each or 1.68 total

-Buy 1 June 77 call for .22

Our intrinsic breakeven on this trade is 73.75 and with the stock currently at $72 time is running out. The trade isn;t worth enough here to even take off for a loss, so we’ll keep this one in our pocket and hope to see a move higher in it by Friday that will allow us to recover as much of it as we can.