Submarine Basket update

Some material changes in the Basket this week:

  • $LVS  This position was exited on 10/28 with an overall gain of $1.07
  • $SKX  This is a new long stock position as of 10/27
  • $TEN  This is a new long stock position as of 10/27
  • $TSCO  I have StC the November 60/65 CS & bought a November 70/75/80 Call Fly (as of 10/29). Options Net is now: $2.82 & stock gains of $1.11
  • $WWE With the weakness today I exited the position (had held since 05/16). Overall gain: $3.54

 

StC = Sell to Close

Using RSI as a trade signal starring Workday

part of the Simple Approach series

 

Sometimes a chart provides a very clean look at what happens at key moments. For an example, let’s take a look at how price reacts when RSI gets near the 70 level (over-bought) on $WDAY:

WDAY_D

Now you have to consider the following:

1) Double Top?
2) Cup is built so does it build a handle now?
3) Just a normal Inside Day today
4) 50/200 SMA congestion

50/50 Basket update

I came into this week with 0 positions and a thin scan list. However, I was able to finally get 2 trades initiated when both saw some profit taking, peaked (one with VERY high RSI):

I have since added a November 20/17.5 Bear Collar on $RGLS (for a 1.45 credit). I have a Stop on $NLNK at $36.

 

A follow up: the Earnings aftermath

I posted some info from my Earnings database yesterday and thought I would do a follow-up post to see how the Trades have played out so far:

Facebook $FB (have position)

  • Long December $80 Straddle
  • Short October 31 weekly $80 Straddle (a Straddle Swap) for a $3 debit
  • October 31 weekly $80 Straddle is now:  .18/3.50
  • December $80 Straddle is now:        2.18/5.60
  • The next step: sell a Straddle or Strangle 2 weeks out to buy back the October 31 weekly $80 Straddle — pick strikes that allow some credit. Example: November 14 weekly $76 Straddle for $4.60 to BtC October 31 weekly $80 Straddle for $.90 credit net
  • I have traded stock in pre-market for a $2.75 gain

Panera Bread $PNRA (have position)

  • A LBW (Look Both Ways) trade
  • Long November 170/175/180 1×2 Split Call Ratio
  • Long November 170/165/160 1×2 Split Put Ratio
  • This was done for an $.18 debit
  • I have traded stock in pre-market today on the short side (given the post-Earnings reaction was negative)
  • I have unwound the Call Ratio for an $.80 credit today (frees up some margin too) so just the Put Ratio remains
  • I have a Sell Short Stop set at $160 now (for stock)
  • Options Net/cushion is now: $3.39

Wynn Resorts $WYNN (no position)

  • Long November 185/190/192.5 Lopsided Call Fly with Short 172.5 Puts
  • This trade was available for a $.30 debit
  • This trade takes margin
  • Price is hovering near the $190 level so it is in the sweet spot for this trade
  • If you did this trade go ahead and BtC (Buy to Close) the November $172.5 Puts to free up margin (under $.10 right now)

Eagle Materials $EXP (no position)

  • Long November 90/85 1×2 Put Ratio
  • This trade was available for EVEN
  • This trade takes margin (at least until 1x of the short $85 Puts are closed – thus leaving a normal Put Spread)
  • Price did react positively but has faded today so there is still a lot of time to get some value from the $90 Puts at least (the $90 level is right near the 200 SMA)