Double Header trade review

I did 2 trades yesterday that had 2 very different goals. Here are the trades with a brief breakdown & status on each:

TSLA_B BIDUHere is a breakdown on the $TSLA trade (looking for short-term pullback, profit taking after recent up move):

  • I am short the February 28 Weekly 265 Calls (takes margin)
  • I am long the March 07 Weekly 260/250 Put Spread
  • This trade cost me $.90 & can make $10.00
  • I have done 1 stock hedge (pre-market today, 02/27, for a gain of $4.21) so now I have a cushion on the trade of +3.31 TSLA_B_B
  • The stock is currently trading near $253 so this trade is working very well so far

Now on to the $BIDU trade. This was an Earnings trade so the goal is quite different: catch a nice up move in the stock post-Earnings. Here is the breakdown:

  • I am long the February 28 Weekly 175/177.5 Call Spread
  • I am short the March 07 Weekly 155 Puts (takes margin)
  • This was done for a $.04 credit
  • I did several stock hedge trades to lock in the gain from the CS (price popped above $180 in A/H on 02/26 but was fading in pre-market on 02/27) BIDU_B
  • I have a cushion of $12.24 after selling the weekly 175 Calls
  • I am now short the Feb 28w/Mar 07w 177.5/155 Diagonal Strangle

2 thoughts on “Double Header trade review

  1. $BIDU adj: BtC Feb 28w 177.5 Calls & StO Feb 28w 180 Calls for .50 debit on 02/27. cushion is now: +11.74

  2. Pingback: Earnings Trades update - 02/27/2014 | 1nvestor1nvestor

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