Options Expiration (weekly) plan

I have a few trades with expiring weekly Options today:


Twitter  $TWTR  I am long the October 31 weekly 48/44/40 Put Fly & short stock at $43.78 (hedge). I will let the 48/44 PS auto-exercise (collecting $4) and the short stock will get assigned (so would then be flat the stock). The long $40 Puts will go poof. This should create an Options Net of $4.04 & stock gains of $.36

Expedia  $EXPE  original trade: Long the October 31 weekly 80/85 1×2 Call Ratio with short $73 Puts. I have already StC (Sell to Close) the $80 Calls for a $5.10 credit. I have added a Buy Stop at $85 to protect the short $85 Calls (2x) today (but expect them to expire worthless). The short $73 Puts will go poof. Options Net: $4.90

Submarine Basket

United Rentals  $URI  I own the October 31 weekly 95/102/109/89 Risk Reversal Call Fly with long stock at $105 (since 10/21). Options Net is currently: $4.38

Yelp  $YELP  I am long the October 31 weekly $55 Puts (part of a Put Calendar). These should expire worthless. Options Net: $.32

A follow up: the Earnings aftermath

I posted some info from my Earnings database yesterday and thought I would do a follow-up post to see how the Trades have played out so far:

Facebook $FB (have position)

  • Long December $80 Straddle
  • Short October 31 weekly $80 Straddle (a Straddle Swap) for a $3 debit
  • October 31 weekly $80 Straddle is now:  .18/3.50
  • December $80 Straddle is now:        2.18/5.60
  • The next step: sell a Straddle or Strangle 2 weeks out to buy back the October 31 weekly $80 Straddle — pick strikes that allow some credit. Example: November 14 weekly $76 Straddle for $4.60 to BtC October 31 weekly $80 Straddle for $.90 credit net
  • I have traded stock in pre-market for a $2.75 gain

Panera Bread $PNRA (have position)

  • A LBW (Look Both Ways) trade
  • Long November 170/175/180 1×2 Split Call Ratio
  • Long November 170/165/160 1×2 Split Put Ratio
  • This was done for an $.18 debit
  • I have traded stock in pre-market today on the short side (given the post-Earnings reaction was negative)
  • I have unwound the Call Ratio for an $.80 credit today (frees up some margin too) so just the Put Ratio remains
  • I have a Sell Short Stop set at $160 now (for stock)
  • Options Net/cushion is now: $3.39

Wynn Resorts $WYNN (no position)

  • Long November 185/190/192.5 Lopsided Call Fly with Short 172.5 Puts
  • This trade was available for a $.30 debit
  • This trade takes margin
  • Price is hovering near the $190 level so it is in the sweet spot for this trade
  • If you did this trade go ahead and BtC (Buy to Close) the November $172.5 Puts to free up margin (under $.10 right now)

Eagle Materials $EXP (no position)

  • Long November 90/85 1×2 Put Ratio
  • This trade was available for EVEN
  • This trade takes margin (at least until 1x of the short $85 Puts are closed – thus leaving a normal Put Spread)
  • Price did react positively but has faded today so there is still a lot of time to get some value from the $90 Puts at least (the $90 level is right near the 200 SMA)







Looking Both Ways in Panera Bread

Sometimes I don’t have a clear bias in a trade but I expect a nice move one way or the other and I want to participate. Yes, I want my cake – and eat it too.

One way I do this is to design what I call a LBW (Look Both Ways) trade. Here is how it looks on a chart:


Current November Option prices:

170/175/180 Split Call Ratio: 5.30/3.30/1.78
170/165/160 Split Put Ratio: 5.80/3.65/2.19

Using a Put Fly to capture some short-term downside in Twitter

Twitter ($TWTR) reported after hours today and the price reacted to the downside. I had initiated the following trade this afternoon with the goal of capturing a down move that would not exceed the August lows:


So far the $44 strike level has been solid and has actually bounced now back up to the $45 level. With that in mind I did the following in after hours to protect the $4 gain in the long Put Spread portion of the Put Fly:


Initial Trade setup: http://stocktwits.com/1nvestor/message/28475720

Trading Activity report

I had a good working list of opportunities from the weekend prep work with 3 trades hitting my trigger area this morning:

  • $BABA  I am long stock at 96.34 with a November 07w 100/98/90 Collar PS
  • $EWZ  I am long the ETF at 37.65 with a November 07w 40/39/37 Collar PS
  • $GPRO  I was long stock but have closed the trade already. Earnings this week so I will consider a trade there if the Options look priced well to do so

Roper Industries ($ROP) reported Earnings this morning and the trade behaved decently so I elected to StC (sell to close) the Long November 150 Calls. This leaves the upper 3 pieces of the Call Fly (short $155 Calls 2x & long $160 Calls) – and the Short $140 Puts remain. I have a Buy Stop set at $153. Options Net is now: $6.40