Options Expiration – the plan for September

Now that we are into the final week of option expiration for the September chains, it is time to finalize a plan for each remaining trade that has options that expire this Friday.

Here is the plan:

$LULU – I am long from 69 with a September 75/72.5 Collar on 9/7 for .15 debit. This trade has a capped gain at the moment (price is at $77.30) so it is best to do nothing here but let it ride — stock is very likely called away on Friday & can’t get much for the 72.5 Put (.17 now).

$NKE – was short from 98.25 (covered today) – so the September 95/97.5 Bear Collar for .08 credit (.83/.75) on 9/14 then became a regular Risk Reversal trade. I have sold the 97.5 Call for 1.27 today and have a stop on the short 95 Put at $.50 (would like to see it expire worthless, keep remaining premium).

$ORLY – I am short from 84.2 with a September 80/85 Bear Collar for .50 credit on 9/14 (.80/.30). I don’t expect a need to do anything on this unless price does go to the 80 strike or below. The long Call is just for protection on the short.

$PCYC – I am long from 60 with a Long September 65 Put (was from a Collar). A pin at 65 on Friday is fine (get no value from Put) as the long stock position would have a $5 gain.

$PNRA – I am long from 159 with a September 170/165 Collar for .10 debit on 9/12. The gain is capped at the moment with price at 172.4 so for now I plan on doing nothing (stock called away on Friday if this level holds).

$RNF – I am long from 31.45 (1/2 position left) with a StO September 35 Call at .90 on 8/16 (1/2 position, a Covered Call trade). The gain is currently capped at the 35 strike, plus premium collected. Price is currently at 36.5 (quite soft today though).

$UNFI – I have a September 55/60 R/R for .55 credit (.65/.10). Price is currently at 59.9 so approaching the key 60 level. The September 60 Call currently trades at a .55/.75 bid/ask spread. The key is to obtain maximum value of the Long Call before expiration.

$WFM – I am long from 93 with a StO September 97.5 Call at 2.10 on 8/16 (covered call). Price is currently at 97.10 so the short call is just OTM. The collected premium provides a nice cushion on any unexpected down move so doing nothing now. If stock is called away on Friday, so be it.

Long Term Account:

I have sold Calls against these long-term account positions that I expect to expire worthless: $AIG $T

I own a September 19 Call (protecting a short) on $FB that I will sell for maximum value this week. This Call currently has a bid/ask of 2.85/2.90

Earnings Trades:

I have no current earnings trades with September options.

Pairs Trades:

I am long $KORS form a May pairs trade but have no September options.

VXX weekend short trade:

I am currently managing a weekend short trade involving the 9 strike Call & Put for September (a 9 Bear R/R) but this will be closed today. The rules rule.

Fab 5

As mentioned in my Fab 5 update post this weekend, the $COST & $DVA positions have (or are) options pieces for September that will need to be addressed before Friday expiration. The $COST call spread is well ITM so maximum value exists. The $DVA Collar is in between strikes so will leave alone for now.







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  1. Pingback: Trade update for O’Reilly Automotive | 1nvestor

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