The Fab 5 update – 04/18/2014

I have a full stable of 5 players & a 6th man. The only material change is the exit on the left-over Option pieces for the $MPC position.

$NEE led the way into the 3-day weekend with the best close at $96.59 with $APH on its heels. I have given the $HON position a time-rule exception but feel it may be time to look at other candidates now that Earnings are past (owned for 9 weeks now).

The Basket is up $11.38 on the stock pieces and there is an Options Net of $15.54 as well.

Here is the Summary:

04192014Fab 5 candidates:

The Fab 5 – 04122014

It has been quiet in the Fab 5 recently as the market selling pressure makes it more difficult for momentum trades like the $100 Roll. Despite this I did manage to add a new position this week as a 6th man: $SNP on 04/07.

Notable activity:

  • $AGU I adjusted the April weekly Collar to next week April monthly
  • $HON I adjusted the April weekly short Calls to next week April monthly
  • $SNP A new position at a $90 trigger on 04/07. I added an April $95 Collar on 04/10
  • $WDC I adjusted the short Calls down to $91 on 04/07 to improve the Options Net

Here is the Summary:


Positions Update – 04/12/2014

Given the market jitters I elected to trade less and just manage the existing positions I have. Some of the activity this week:

  • $ALK I had exited the existing Call Spread on 04/07 but wanted to revisit a new trade. I initiated a May Risk Reversal CS on 04/09
  • $AMBA I lowered the Stop on the stock piece to $25.01 (has a Collar but that doesn’t mean you get complacent)
  • $AVGO I will need to monitor the $57.5 level for the stock piece (bottom of PS protection is at that strike)
  • $CRR I exercised the long April $125 Calls & sold the stock. I then StO the April $140 Calls to make a short 135/140 CS. The short $120 Puts remain
  • $FRX A new position this week that has an April Collar
  • $IYR I had initiated a Risk Reversal for April but exited on 04/11 for a small loss
  • $PLUG I adjusted the April weekly Bear Collar to April 25 weekly
  • $SQQQ This portfolio hedge is capped so I will need to deal with that before Friday (april expiration)
  • $AIG I adjusted the April weekly Calls to the April 25 weekly expiration (short calls against stock in LT acct)
  • $XONE The Stop hit on the April $35 Puts on 04/07 so I am left with long $30 April Puts
  • $WFM I adjusted the April weekly Collar to the April 25 weekly expiration (50/52 Collar). That adjustment added $3.91 to the Options Net
  • $STKL I sold the April Calls and added a May 10/12.5 CS
  • $STZ I am short the April 85/77.5 Strangle (Earnings). There is a sell short stop set at $77
  • $FAST I am long the Apr/May 50/45 1×2 Diag Put Ratio Calendar (Earnings)

Submarine Basket (see Blog, just did a post earlier on that)


Here is the Summary:



Position mid-week update

Newly added this week that remain:

  • $FRX long stock at $86.40 with an Apr 90/87.5 Collar
  • $IYR Long the April 69/67 Risk Reversal (takes margin)
  • $GIMO long stock at 17.45 (1/3 size, a starter position). I will likely sell a Strangle as the next step
  • $STZ short the April 85/77.5 Strangle (Earnings). Options Net is: $2.34
  • $SNP long stock at $90 for the Fab 5 (6th man)
  • $ADM long stock at $43.87 with a May 02w 44.5/43.5 Collar (clients)
  • $EPD long stock at 71.73 with a May 72.5 Collar (clients)
  • $NRG long stock 32.64 with a May 33/32 Collar (clients)
  • $PEP long stock at 83.82 with a May 85/82.5 Collar (clients)
  • $SYY long stock at 36.04 with a May 09w 37/36 Collar (clients)

I had exited the Call Spread for $ALK earlier in the week but had noted I wanted to revisit it. I added a May 95/100/85 Risk Reversal CS (last piece was today).


The Fab 5 update – 04/05/2014

There was 1 empty seat to fill coming in to this week for the Fab 5 and I chose $APH on 04/02. This long stock position has April $95 Puts along for the ride given the market jitteryness. The Bear Risk Reversal PS remains on $MPC as I am letting the elevated IV burn off more (quite expensive to unwind the trade still).

I adjusted the April 4 Weekly option pieces to April 11 Weekly on $AGU $HON & $WDC. I will consider finishing the Collar on $NEE if the market continues to be under pressure next week (just short the April $97.5 Calls right now against long stock).

Here is the Summary:


Position Updates (mid-week) – 04/02/2014

Mid-week update on what is newly added:

  • $MNKD I have an Apr 4 weekly/11 weekly 5/3 Strangle Swap (initiated on 3/31 for the FDA panel vote). In addition I have a gain of $1.28 from a stock short on 4/1 in after hours
  • $ALNY I have an April 65/70/60 Risk Reversal Call Spread (submarine basket)
  • $APOL Long April 4 weekly 35/37.5/40 1×2 Split Call Ratio with Short 31 Puts (Earnings)
  • $JBHT I am long stock with an April 75/70/65 Collar PS (submarine basket)
  • $MON I am Long the April 4 weekly/Apr 112/110 Diagonal Put Calendar (Earnings)
  • $APH I am Long stock and Long the April $95 Puts (Fab 5, clients)
  • $CAT I am Long stock and Long the April 11 weekly/25 weekly 102/101 2×1 Diagonal Put Calendar (clients)


The Fab 5 update – 03/29/2014

I came into this week with 2 empty seats to fill. I started a new position in $AGU on 03/24 & then added $WDC on 03/25. However, I had to exit the stock piece on $MPC (hit a Stop for a $3.50 loss). The $MPC April 92.5/92.5/87.5 Collar PS became a Bear Risk Reversal PS and that still remains. There is an Options Net of $2.98 as well.

The $HON & $MEE positions have reached the time rule so I will need to address them this week (either exit or allow a time rule exception).

Here is the Summary:

03292014Fab 5 candidates:



Position Updates – 03/29/2014

I came into this week with heavier cash position (mostly driven by March Option trades being closed and being a little more cautious with a more nervous market). Earnings season is winding down but still found ample opportunities (several on a post-Earnings move). I was able to do several regular trades as well.

Here are the newly added positions that survived into the weekend:

  • $CRR I own an April 125/130/120 Risk Reversal Call Spread. The CS is currently capped
  • $INSM I am Long the April 17.5/20 Call Spread (initially did a stock trade after the Phase II data release for a gain of $3.22)
  • $NUS I am Short stock at 95.62 with an April 4 weekly $85 Bear Collar. The Short position is currently capped by the short Puts in the BC
  • $SQQQ I am Long the April 55/60 Call Spread (portfolio hedge). There is a $.87 gain on the ETF already booked (used the proceeds to help pay for the CS)
  • $STKL I am Long the April $10 Calls
  • $BOFI I am Long the April 85/90 Call Spread. There is a gain on the initial stock trade of $8.80 (submarine basket)
  • $PBR I am Long at 11.75 with an April 4 weekly $13 Collar (submarine basket)
  • $GIII I am Short the April 75/70 Strangle with a short stock piece (hedge). There is an additional cushion of $1.52 from the 1st stock hedge. Options Net: $4.75
  • $PVH I am Short the April 120/125 Strangle with a Long stock piece (hedge). I have done several hedges for an additional cushion of $4.72 & have an Options Net of $5.55
  • $RH I am Long the April 65/70 1×2 Call Ratio with a Long stock piece (hedge). This is currently 1.5x size & this is the 3rd trip with a long stock hedge (I have an additional cushion of $2.265) . Options Net: $.14

Exits this week (including newly added positions that were closed):

Current Submarine Basket:


Here is the Summary:




The Fab 5 update – 03/22/2014

This week saw a lot of activity in the Fab 5 as I closed 2 positions and dealt with March Options expiration on the relevant positions. I closed $HAIN on 03/20 for an overall gain of $7.60 & $SBAC for an overall gain of $3.76 (both of these positions get a Not Complete status however, did not complete the $100 Roll).

The March 95/85 Put Spread on $WDAY almost came into play with price closing near the 50 SMA at $97.10 but ultimately expires worthless.

I have 2 empty seats to fill & here are the current members: $HON $NEE $MPC

Here is the Summary:

03222014Fab 5 candidates:



Position Updates – 03/22/2014

This week was March Options expiration so most of my focus was in the managing of existing positions (most have Options as a component of the trade). As usual I had a variety of trades that I needed to tend to including:

  1. trades that I planned on letting get called away
  2. trades I needed to adjust to a future expiration
  3. trades that were near ITM so needed close monitoring to see if they would expire or not

I wrote about my Plan last weekend here.

I adjusted most of the trades throughout the week but still had a dozen or so that I needed to work on Friday. Of course there is always at least one surprise and this week it was $BIS (popped on Friday & hit a Buy Stop).

Here are the position exits this week (including new trades that were closed):

Newly added regular positions this week that survived into the weekend:

Earnings Trades (thin list remaining):

  • $NES (Long Apr 20/22.5 Call Spread remains)
  • $KBH (now have Stock, let Calls get exercised). New this week
  • $NKE (Long stock, partial so far). New this week

Submarine Basket:

Here is the Summary: