The Fab 5 update

I came into this week with 2 empty seats to fill but found no new trades to initiate. I closed the $AET position and had a Stop hit on the Long stock piece for $UNH (not an official position for the Fab 5 but the trade is still on). The Short March $105 Calls for $UNH remain with a Buy Stop set at $109.50 for now.

I am back to 3 empty seats to fill.

Here is the Summary:

01312015

Fab 5 Candidates:
$HYG
$VAR
$MPC

 

- DM 7:30 AM CST

 

Trading Activity

Reminder: The activity noted here is in Personal Accounts unless I specifically note a trade is/was for clients.

Activity:

BioMarin Pharma $BMRN  The Long stock piece hit a Stop on 01/21 leaving me with Short February $100 Calls. I elected to add additional Option pieces for February to create a Call Fly. Options Net shrinks to: $4.89 and stock gains: $5.84 (Fab 5)

United Rentals $URI  I am Short the March $82.5 Puts (2x size). I went Short stock post-Earnings on the $90 break

F5 Networks $FFIV  I am Long stock at 108.35 (post-Earnings Dip Buy, 1.5x size). This hit a Stop at $113.75 for +$4.82 so the position is now closed

SanDisk $SNDK  I have StC the January 23 weekly $80 Puts. The Long weekly $80 Calls remain as well as the Short March pieces (1/2 size on these). Buy Stop is set at $78 (would be a hedge). Options Net is now: $4.81

 

StC = Sell to Close

- DM 10:00 AM CST

 

 

The Fab 5 update

This was a hectic week as all positions saw activity except for $UNH. I ended the week with $BMRN & $ROST as official positions so I have 3 empty seats to fill. The $HD $PEP $SWK $XRT positions were exited. The $UNH position remains but is not an official position (as of 12/31).

Here is the Summary:

01172015

Fab 5 candidates:

 

- DM 10:00 AM CST

 

Trading Activity

Synnex Corp $SNX  I unwound the Call Calendar & Short Jan Puts for +1.45 credit and sold the stock piece (tag along trade) at $78.10 for +3.10 (Earnings). Position now closed

Stanley Black & Decker $SWK  I have BtC the Short January Calls (Fab 5). Position now closed (applying the Time rule)

SPDR S&P Retail ETF $XRT  I have BtC the Short January Calls (Fab 5). Position now closed (applying the Time rule)

Ross Stores $ROST  Long the February 92.5/97.5/87.5 RRCS for a $.28 debit (new Fab 5 member)

ProShares Ultra-VIX Short-Term Futures $UVXY  I adjusted the Short Calls to the March $30 strike (covered) for a $1.82 credit. Options Net improves to: $5.65

 

RRCS = Risk Reversal Call Spread (Long a CS, Short Puts)

 

- DM 10:00 AM CST

 

 

The Fab 5 update

The only activity this week was in adjusting the Short Calls on $UNH to the January 30 weekly $100 strike (no longer an official Fab 5 position but the trade is still on). The $HD position was also taken out as an official position but the trade remains.

There is one empty slot to fill.

Here is the Summary:

01032015

Fab 5 candidates:
$IYF
$BG
$BLUE

 

- DM 9:30 AM CST

 

 

Position Updates – year end

Here is how my personal accounts will end in 2014:

Swing Account

  • $COV  Long Jan/April 97.5/100 Diagonal Call Cal
  • $KMX  Long stock at $60 and Short the April $65 Calls (covered)
  • $PNC  Long stock at $92.50 (hedge) with a January 90/92.5/95 Call Fly
  • $SWKS  Long stock at $63 and Short the January $70 Calls (covered)

Long-term Account

  • $AIG  Long at $39 and Short the February $52.5 Calls (covered)
  • $AVGO  January 100/105/110 Call Fly
  • $DXJ  Short the January 58/51 Strangle and Short the ETF at $51 (hedge)
  • $EA  Long at $41.4 with a Mar/Jan 46/45/40 Collar PS
  • $IWC  Long at $72.95 and Short the January $77 Calls (covered)
  • $WAG  Long at $70 with an Apr/Jan 75/75/72.5 Collar PS

IRA Account

  • $ACHN  January 12.5/20 CS
  • $CYBR  January 40/45 CS
  • $DVA  Long at $54 and Short the January 2016 $72.5 Calls (covered, oldest position I have)
  • $INTC  Long at $31.50 and Short the February $34 Calls (covered)
  • $MAR  Long at $59.50 and Short the January 2016 $70 Calls (covered). I am also Long the January $80 Calls (was part of a Call Calendar)
  • $SHPG  Long at $207.44 with a January 225/215/200 Collar PS

Submarine Basket

  • $AGCO  Long at $43 with a January 45/45/40 Collar PS
  • $DNKN  Long a February 42.5/45 1×2 Call Ratio and Short the January $40 Puts
  • $FDX  Jan/Jan 09w/Jan 170/175/170 RRCS
  • $TSCO  Long at $70 with a January 75 Collar
  • $KR  Long at $35.4 (former member of the Basket, I left the trade on)

50/50 Basket

  • $CUBA  Short at $12.50 with a Stop set at $9.50 (as of 12/29)

Fab 5

  • $BMRN  Long at $90 and Short the January $95 Calls (covered)
  • $SWK  Long at $90 and Short the January $95 Calls (covered)
  • $XRT  Long at $90 and Short the January $95 Calls (covered)
  • $UNH  Long at $91 and Short the January 02 weekly $97 Calls (covered)

Note: $HD $PEP are client positions

Earnings

  • $DPZ  Long at $78 with a March/Jan 90/90/85 1×2 Collar Put Ratio
  • $LE January 50/55/40 RRCS

 

RRCS = Risk Reversal Call Spread

 

- DM 10:45 AM CST

 

 

 

 

 

The Fab 5 update

This was a solid week for the Fab 5 with one position getting Complete status: $UNH. There was some drama in the $BMRN position with a Stop hitting on the long stock piece on 12/23 but I have a new long as of Friday (Buy Stop trigger at $90).

I closed the $CELG & $GILD positions to book the gains (end of year is next week). Both $HD & $UNH have Complete status so I will likely take them out of the Fab 5 as official positions — but leave the trades on.

Here is the Summary:

12272014

Fab 5 candidates:

$CME
$ETR
$IYF
$PRU
$ABC

- DM 8:00 AM CST

The Fab 5 update

This week was the December Monthly Option expiration and it had some good volatility as expected. Here is the activity in the Basket this week:

  • BioMarin Pharma $BMRN  The Long stock piece had hit a Stop on 12/15 thus leaving the Short December $90 Calls. I had set a Buy Stop at $90 and it hit on 12/18 so this position was fully back on (6th man)
  • Home Depot $HD  It achieved Complete status this week
  • United Healthcare $UNH  It had a new Day #1 on 12/18 & nice follow thur Day #2 12/19
  • SPDR Retail ETF $XRT  I adjusted the short Calls to the January 02 weekly expiration

Here is the Summary:

12202014

Fab 5 candidates:

 

-DM 9:20 AM CST