I had watched a 60 minutes segment on our nations’ infrastructure yesterday (focus on Bridges) and had figured that $CBI would get some attention today. This is what actually happened:
Sellers have kept showing up at the RSI 60 level and you can see what has happened after each event.
I have only made 2 adjustments to existing positions today:
Zillow $Z I have StO November 28 weekly 121/110 Strangle for a $1.25 credit. I now have a 120/121/110 Risk Reversal CS for this week. Options Net improves to: $3.47
Potash $POT I have StC the December 05 weekly $35 Calls. This leaves a Short 38/33 Strangle for next week. Options Net now: $1.40 (Submarine Basket)
I have been more active for clients today. Newly added or bidding in the Cabernet portfolio:
For those that trade Options as part of their overall Trading Process it is an important task each weekend to prepare for – and create a plan for – the upcoming week expiration. I do have Options each week that are set to expire so this is always a part of prep work.
Here are the existing positions that I have with November 28 weekly Options as part of the trade:
Here is the Option chain for the January 2015 Options in $DG showing the heavy skew to the Call side:
Notes on the chart reflect a summary of other Option expiration. I will be initiating a “tag along” trade this week in either Jan or Feb options.
I will be monitoring this large Option trade for $UBS into December.
Uh, what happened to $IBM in this Bull market?
I have been building several watch-lists for next week and this hit one of my scans that I use for the Submarine Basket. But, is $IBM a quality stock that is simply at a good discount here? Can it get even more discounted?
When RSI gets elevated in this Ratio chart it has signaled a buy point for $IBM several times in the recent past. Can history rhyme?
Up until today, I have had a position in GameStop in my long-term account (since 05/22/2014). I wrote earlier this week about an adjustment I made for $GME Earnings but in reviewing the position it seems that I had begun to listen to the market more and more about the long-term prospects well before this week.
I had adjusted the position to a Short CS on 10/02 (I had been Bullish up to that point) and had set a Buy Stop at $44 (for protection, a hedge). You can read more about the details in each of the Position Updates posts that I submit each weekend.
Here is a Weekly chart of $GME showing how the market reacted to Earnings:
It is possible that it can find some solid Support soon and offer a good entry for a new Long position but I will only consider it for the Submarine Basket now (the primary goal for this basket).
Here is the Summary:
A few of you asked why I elected to take stock (let the Long Calls exercise). I had a lot of available cash allocated for this basket so I put some of that to work by letting the Calls exercise.
There was a LOT of activity this week in existing positions due to November Options expiration so that was my primary focus. I did however add some new positions that survived to the weekend:
Covidien $COV I am Long the Jan/Dec 97.5 Call Calendar (Swing account)
Skyworks Solutions $SWKS I own the December 05 weekly 63/65/61 Risk Reversal CS (Swing account)
Zillow $Z I am Long the November 28 weekly $120 Calls ( Swing account)
Electronic Arts $EA I am Long stock at $41.40 and Short the December $43 Calls (covered calls, long-term account)
Shire $SHPG I am Long stock at $207.44 (IRA)
Potash $POT I own the December 05 weekly 35/38/33 Risk Reversal CS (Submarine Basket)
Here is the Summary: