Position Updates

I had activity this week in each of the 3 accounts:

Altera $ALTR  I traded the Intel rumor on 3/30 (exit the same day)

Emerson Electric $EMR  I tagged along in a large April $55 Put trade (Long)

Skyworks Solutions  $SWKS  I adjusted April 02 weekly Put Ratio (Long stock protection) to the April 24 weekly expiration

Trex $TREX  I traded the breakout but it fizzled (hit a Stop for +1.17)

Avago Tech $AVGO  I added a May 125/115 1×2 Put Ratio (protects Long stock)

ProShares UltraShort 20+ Year Treasury $TBT  I unwound the rest of the position when the Long ETF piece hit a Stop

Carmax $KMX  I am Short the April 72.5/65 Strangle and Long stock at $74.15 (hedge, 2nd trip long). Only new Earnings trade this week

Submarine Basket


50/50 Basket: no positions


Here is the Summary:


- DM 9:10 AM CST


Using Options to increase flexibility in a trade

This is a trade review in Fleetmatics Group. Here are the details:


The Options pieces can also be viewed this way:

Long the Apr/Mar $45 Call Calendar
Short the April $50 Calls (covered by stock)

A few scenarios that price can pursue:

1)  Stock is still at the $45 level at March expiration (next week). I would let the Short March $45 Calls expire (or buy back real cheap). I would then still be Long stock and Long the Apr 45/50 Call Spread. I could leave both trades on or close the long stock and let the CS ride

2) Stock is at $46 at March expiration. I would let the stock get called (due to the Short March $45 Calls) and thus I am left with a Long April 45/50 CS

3) Stock is at $44 at March expiration. The Short March $45 Calls go poof and likely would have monitored the Long stock piece closely, set a Stop (would not have wanted too much of the stock gain to evaporate). I would still be Long the Apr 45/50 CS


- DM 11:00 AM CST