The plan for May Options expiration

Each month I have a week where my Option trading activity takes on a life of its own as I review all my positions that have May options as part of the trade. This week those options are expiring so I have been going through my process of planning and executing any adjustments/exits that I want to make.

As I have added managed accounts for clients in recent months, this process becomes even more important to ensure that I exit trades that may be tired – or I look for good spots to adjust existing positions.

I have made a lot of adjustments this week and here is what I have left to address:

Personal Accounts

  • $DDD I am long stock and short the May 50 Call (earlier Blog post with more detail on this one). This is currently OTM so it has a chance to expire worthless, let me keep premium collected
  • $OSTK I am short stock and long the May 25 Call so I need to get value from it this week or move to a June strike
  • $TSLA I exited my short stock position earlier (hit a stop) so I am now left with a May 80/90 Risk Reversal. Current bid ask on this is: 1.40/1.40 lol
  • All other positions have been moved to May 24 weekly or June (or beyond)

Earnings

There are no current earnings trades with May options

Fab 5

$ACT I am long stock with a May 115/105 Collar. Price is above 115 level so I need to decide if I will let it get called away or move to a June collar. Given it has already achieved the Complete status I will likely let this position get closed for me

Clients

  • $ADBE I am long the June/May 40 Put Calendar. The May piece is to protect the short June piece so will leave until expiration
  • $APO I am long stock with a short May 27.5 Call (Cov Call). I expect these to go poof, keep premium collected
  • $ARUN I am short the May 17 Put. I am watching closely, but expect these to go poof, keep premium collected
  • $BAC I am long stock and short the May 13 Call so I need to either let it get called or move to next week (or further out)
  • $CBS I am short the May 49 Put. I expect these to go poof, keep premium collected
  • $IMPV I am short the May 45 Call (part of Call Calendar). I expect these to go poof, keep premium collected
  • $MPEL I am short the May 22 Put. I expect these to go poof, keep premium collected
  • $SODA I am long stock & short the May 60/57.5 Strangle. Given the short Call is ITM I will need to address this by Friday or the stock will get called away
  • $SYMC I am long stock and short the May 25 Call. I expect these to go poof, keep premium collected
  • $SYNA I am short the May 37 Put (part of R/R CS). I expect these to go poof, keep premium collected

 

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