When the market speaks, do you listen?

Up until today, I have had a position in GameStop in my long-term account (since 05/22/2014). I wrote earlier this week about an adjustment I made for $GME Earnings but in reviewing the position it seems that I had begun to listen to the market more and more about the long-term prospects well before this week.

I had adjusted the position to a Short CS on 10/02 (I had been Bullish up to that point) and had set a Buy Stop at $44 (for protection, a hedge). You can read more about the details in each of the Position Updates posts that I submit each weekend.

Here is a Weekly chart of $GME showing how the market reacted to Earnings:

GME_weekly

It is possible that it can find some solid Support soon and offer a good entry for a new Long position but I will only consider it for the Submarine Basket now (the primary goal for this basket).

 

Earnings Trades update

I exited the majority of the Earnings Trades since they primarily had November Options as part (or all of) the trade. This past weekend I listed my plan for the week here. This is what remains:

  • $JCP  The January/November 28w 10/8 Straddle Swap remains
  • $DPZ  I am Long stock at $78 (since 10/14) and Short the March $90 Calls (covered calls)
  • $NFLX  I am Short the January $380 Calls with a Buy Stop set at $375 (hedge)
  • $FB  The December/November 28w 80/75 Straddle Swap remains

 

 

Trading Activity

Here is my activity so far today:

$AGN  The Diagonal Call Calendar was unwound (assignment reported to me this morning)

$BABA  I have adjusted a few of the Option pieces today (see Blog post comments for details)

$GPRO  I have traded stock (short) today on the secondary news but closed now. November 28w CS remains

$SLCA  I have exited the remaining Option piece so this position is now closed

$Z  I have adjusted the Short Puts to the November $115 strike (expect/want them to expire)

$GME  I have BtC the November 44/45 CS (long-term account). Options Net now: $2.23 & stock gains of $7.99 (I will consider an Earnings trade for the LT account). Here it is: added a November 44/47/50 Call Fly with Short 37 Puts for EVEN

$GMCR  I am short stock at $150.24 and have covered 1/2 already at $140 even (a post-Earnings trade)

$SKX  I adjusted the short Calls to the December $60 strike. I expect the November 55/50 PS to go poof

$PNRA  I have BtC the short Puts so this Earnings trade is now closed (and some margin freed up)

 

Notes:

When I list something like “28w” this = 28 weekly

BtC = Buy to Close (options)

Earnings Trades update

A very mild trading week for me in this category as I added only 2 new positions that survived to the weekend:

I exited $RFMD and the $RAX position went poof.

Here are the current positions:

  • $JCP  I am Long the January 2015 $10 Straddle and short the November 28 weekly $8 Straddle (a Straddle Swap)
  • $DPZ Long stock at $78 with a November 85/85/75 Collar PS
  • $NFLX Long stock at $340 with Short January $380 Calls (covered)
  • $CP Long the November 200/210/220 Call Fly. I did a Blog post here
  • $PII Long stock at $146.84 with a November 150/150/135 Collar PS
  • $ORLY Long the November 160/165 1×2 Call Ratio and Long stock at $165 (hedge)
  • $BCR Short the November 150/145 Strangle and Long stock at $150 (hedge)
  • $N November 95/100/105 1×2 Call Ratio with Long stock at $101.72 (tag along stock position initially but is a hedge now)
  • $ROP Short the November 155 & 160 Calls as well as the $140 Puts. Long stock at $153 (hedge, 2x size)
  • $PNRA Short November 165 & 160 Puts with a Sell Short Stop set at $165
  • $FB Own a December/November 28 weekly 80/75 Straddle Swap (adjusted this week)
  • $RGR Long the November 47.5/45/42.5 1×2 Split Put Ratio and Short stock at $43.65 (tag along)
  • $SLXP Long the November 90/100/110 Call Fly (the Buy Stop at $100 hit on Friday so Long stock now, hedge for the middle of the Call Fly)
  • $JWN (new) Long the November 72.5/70 1×2 Put Ratio and Short the $75 Calls (2x, there is a Buy Stop set at $75.01)
  • $BITA (new) Long stock at $79.20

Position Updates

Earnings season continues to wind down so I am shifting more of my focus back to normal Swing trading. I will still do Earnings trades but it will be greatly reduced now that there are a lot less opportunities each week.

Newly added this week that survived to the weekend:

  • RCS Capital $RCAP  I am long stock at $10 (after initially trading it short) as of 11/13 (Swing account)
  • Cyber-Ark Software $CYBR  I am long stock at $37.80 with a December 45/40/35 Collar PS (IRA account)
  • Altisource Portfolio $ASPS  I am short stock at $60 (covers the short November $60 Puts, Submarine Basket)
  • Ford $F  I am long stock at $14 with a December 05w 15.5/15 Collar (Submarine Basket)
  • Sanofi $SNY  I have a December 45/44 Risk Reversal with Short November $47 Calls (these are extra short Calls, Submarine Basket)
  • SPDR S&P Retial Index $XRT I am long the ETF at $90 (Fab 5)
  • Nordstrom $JWN  I am Short the November $75 Calls (2x) and Long the 72.5/70 1×2 Put Ratio. There is a Buy Stop set at $75.01 (2x, hedge). This is a LBW (look both ways) Earnings trade
  • BitAuto $BITA  I am long stock at $79.20 (Earnings trade)

Exits this week (existing or newly added that did not survive to the weekend):

50/50 Basket:  no material changes to report. Just one position still: Regulus $RGLS

Here is the Summary:

Positions_11152014