Trading Activity

Updated

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:

  • $IBM  (Call Calendar with Short Puts)
  • $BA (Straddle/Strangle Swap)
  • $SYK (Double Calendar)
  • $WAB (Double Calendar)

November 28 weekly Option expiration plan

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:

$JCP
$FB
$XRT
$CELG
$GILD
$FDX
$UNH
$BABA
$Z
$TLT

IBM is at a 52-week low (the markets aren’t)

IBM_52week_Low

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?

This may help (or not): A Ratio chart of $NYA & $IBM:


NYA_IBM

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?

When the market speaks, do you listen?

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:

GME_weekly

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).

 

Position Updates

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:

Positions_11222014