Network Appliance

Here is a Daily chart of $NTAP that shows the gap down move post-Earnings:

NTAP

Buying the stock on a touch of RSI at 30 has been a mixed bag of results:

  • October, a very nice bounce
  • Jan this year, several false starts
  • And now in May you have a dip to RSI 24.4

 

Disclosure:  I am short the May 22w 32/31 Strangle. Options Net: $.73

– DM 10:00 AM CST

 

 

Review of Salesforce.com as it heads into Earnings

I have an existing position in $CRM where I have done a few tweaks today. Here is the trade coming into this morning:

I own the July 75/82.5/67.5 RRCS (Risk Reversal Call Spread)

This morning I added a short stock piece on the break of $73. I have since covered this for a $3.16 gain. I have also added long May 22w $67.5 Puts for a -$.90 debit (protects the short July Puts). The Options Net is now: -$1.50

So in summary, the trade looks like this into Earnings:

  • Long the July 75/82.5 Call Spread
  • Short the July/May 22w $67.5 Put Calendar

 

– DM 2:30 PM CST

 

 

Position Updates

Due to an increasing amount of questions and comments regarding my positions & trading I recently created a new tab on the Blog for recording my Positions. The goal is to update the info on each account or basket daily for any changes that occur.

Newly added this week that survive to the weekend:

$RENT $WM $XLF $PFE $GMCR $YUM $ZBRA $CTRP

Exits:

$MNST $QLYS $RMD $RL $PTBI Earnings: $CNC $TMO $ORLY $EW $BWLD $NXPI $HAR $EL $RGR $MCK $KSS $LOCO $KING

Here is the Summary:

Positions_05162015

– DM 10:00 AM CST

 

Earnings Trade in Ctrip.com

I have elected to do a Straddle Swap in $CTRP for Earnings with an extra kicker: short the May $58 Puts to help reduce the cost. Here are the details:

  • Short the May 22w $65 Straddle
  • Long the May 29w $65 Straddle
  • Short the May $58 Puts
  • Cost:  $.25 debit
  • Takes some margin (until the short May $58 Puts are closed)

The goals here are:

1) price to avoid the $58 level below & the short Puts go poof Friday

2) for price to stay near $65 until next Friday (a pin is ideal)

Here is a Daily chart:

CTRP

– DM Noon CST

 

Earnings preview for McKesson Corp

$MCK has Earnings AMC today (5/12) and I wanted to prepare for a potential trade. After reviewing some of the @Estimize data I wanted to share the Revenue graph for the past few years:

MCK

If this isn’t a trend then I don’t know what is

Since I use Options in the majority of my Earnings trades I took a look at several of the chains. Here is the most relevant (May):

MCK_May

It is worth pointing out the Top OI (open interest) is at the $220 Put strike. Now for a look at the Daily chart:

 

MCK_B

Now some Trade Ideas:

  1. Short the May 230/220 Strangle for a $3.25 credit. Range to work with: $233.25 to   $216.75
  2. Long the May 230/220 Risk Reversal. Takes margin. Cost: $1.25
  3. Add short May $240 Calls to #2 to create a 230/240/220 Risk Reversal Call Spread. Takes margin. Will reduce cost of #2 down to $1.00

Note:  I chose #1 for myself

 

– DM 10:30 AM CST