I exited the majority of the Earnings Trades since they primarily had November Options as part (or all of) the trade. This past weekend I listed my plan for the week here. This is what remains:
- $JCP The January/November 28w 10/8 Straddle Swap remains
- $DPZ I am Long stock at $78 (since 10/14) and Short the March $90 Calls (covered calls)
- $NFLX I am Short the January $380 Calls with a Buy Stop set at $375 (hedge)
- $FB The December/November 28w 80/75 Straddle Swap remains
I added $XRT this week to fill the 1 empty slot. I had added $AGIO on the break of $90 but it ended up being just a one-day trade (big pop & then faded some). It will remain on the candidate list. No material changes this week to the existing Fab 5 members.
I did take a Stop on the Long November 28 weekly $100 Calls in $GILD (continues to show weakness). There is a Buy Stop set at $104 as a hedge for the remaining short January $105 Calls.
Here is the Summary:
I have spent the majority of my time managing the existing positions that have November Options as part of the trade (or all of it). This is what I have left to tend to/monitor into the final few market hours:
- $BABA I am short the $108 Puts (part of a trade)
- $VDSI I will be taking stock (from the Long 17.5 Calls). The Short $15 Puts will go poof (part of a trade)
- $Z I am Short the $115 Puts (part of a trade)
- $GME I have a Call Fly with Short Puts — I expect all the pieces to go poof. This long-term account position will then be closed
- $INTC I have a Long 33/29 Put Spread that will go poof (part of a trade in the IRA)
- $DWA I am Short the 23/22 Strangle
- $LULU I am Short the $45 Puts (for some clients, part of a trade)
- $XOP I am Short the $63 Calls (remaining piece of a trade)
I have other trades that have capped pieces (and well ITM) that will auto-exercise.
Part of my trading strategy is to always be on the lookout for stocks that are discounted. Sometimes this discount can lead to more downside but there are several ways to enter stocks carefully – to protect against being too early for a bounce trade.
One stock that is on my list is $GMCR and I am considering several different approaches. First though, a look at the Daily chart:
I’ve drawn a Rising trend-line and a Horizontal Support line for reference. Price did a B/O back-test yesterday and is bouncing mildly today. It is worth noting the Volume footprint yesterday on the pullback.
Here are a few ways I would approach a new trade in $GMCR:
1) Go long a December 12 weekly 140/135 1×2 Put Ratio. You do this trade if you think there is a good probability of more short-term downside – and you want to participate in that
2) Choose a December 145/155/135 Risk Reversal Call Spread for a small debit
3) Choose a December 145/155/165 Call Fly with Short $135 Puts for a nice credit
Here is my activity so far today:
$AGN The Diagonal Call Calendar was unwound (assignment reported to me this morning)
$BABA I have adjusted a few of the Option pieces today (see Blog post comments for details)
$GPRO I have traded stock (short) today on the secondary news but closed now. November 28w CS remains
$SLCA I have exited the remaining Option piece so this position is now closed
$Z I have adjusted the Short Puts to the November $115 strike (expect/want them to expire)
$GME I have BtC the November 44/45 CS (long-term account). Options Net now: $2.23 & stock gains of $7.99 (I will consider an Earnings trade for the LT account). Here it is: added a November 44/47/50 Call Fly with Short 37 Puts for EVEN
$GMCR I am short stock at $150.24 and have covered 1/2 already at $140 even (a post-Earnings trade)
$SKX I adjusted the short Calls to the December $60 strike. I expect the November 55/50 PS to go poof
$PNRA I have BtC the short Puts so this Earnings trade is now closed (and some margin freed up)
When I list something like “28w” this = 28 weekly
BtC = Buy to Close (options)
For those that inquired about the trade that I was bidding for $GMCR earnings — here it is (was):
Long the December $160 Calls
Short November 170/140 Strangle (2:1 Ratio)
Short the December $175 Calls (20% size)
bid the above at a $.25 credit but it did not fill
Most of my efforts this week will be on executing the November Options expiration plan that I blogged about over the weekend.
Some activity today:
$CP The remaining Option pieces have been closed. Options Net final: $4.77 & stock gains of $1.72
$TMO I went long stock as it broke the $120 level (120.18) yesterday and sold it all when it hit $124.85 today
$BABA I made an adjustment to the trade today, see Blog post comment section for specifics
$RCAP I added a December Collar PS
$ASPS This position was unwound for me today (Short Puts assigned so stock piece covered, Submarine Basket)
I will be evaluating more ideas in $GMCR as the day goes on.
I have had some activity in the Submarine Basket this week so I thought I would provide a mid-week update. Newly added:
DreamWorks Animation $DWA I am short the November 23/22 Strangle (see Blog post for more details)
Potash $POT Based on Call activity – and then the news of a mine closing – I tagged along by opening a December 05 weekly 35/38/33 Risk Reversal Call Spread (noted the Breakout here)
Activity in existing:
Sanofi $SNY I adjusted the short Calls to the December $48 strike
Tenneco $TEN I adjusted the short Calls to the December $55 strike
Here is the Summary:
11/18/2014 AMC & 11/19/2014 BMO notable Earnings reports:
I have no new Earnings trades on for today or tomorrow at this time.