Trading using RSI starring Google

 

part of the Simple Approach series

GOOGL_B

If you were using RSI to Buy in mid-Oct and mid-Dec then you’ve done well. Now that RSI is probing top side at 70 I would imagine that RSI Sellers show up now. Of course, it could just drift sideways to burn off some of the RSI. Or it could just keep going.

I have an existing position that I have on my list to tend to this week (has weekly Options as part of the trade). I am considering taking stock at $525 but will consider other choices by Friday.

 

- DM Noon CST

 

IRA account review

I have some capital available to put to work in the IRA as I have only 3 open positions (normally have 5-6):

  • $ACHN  I am Long the March 14/18 CS
  • $CYBR  I am Long stock at $40 with a Diagonal Collar PS
  • $MAR  I am Long stock at $59.50 with a Diagonal Collar PS

Note: there have been no material changes to these positions this week. You can review my Position Updates post each weekend to keep a historical look at my trading.

 

- DM Noon CST

 

Swing Account review

No new positions this week. A few existing positions that have seen activity this week: $FB $SWKS. Here are the 6 positions:

  1. $FB  I am Long the March 13 weekly 79/80 CS. Options Net is: $1.16
  2. $SSYS  I am Long stock at $55 (since 2/13) and have a March/March 13w $65 Collar. Options Net is: $1.71
  3. $SWKS  I am Long stock at $63 (since 12/05) and have an Aug/Mar 85/80/75 Diagonal Collar PS. Options Net is: -$.68
  4. $UNP  I am Long stock at $113 (since 01/23) with Short January 2016 $120 Calls (covered calls). Options Net is: $2.08
  5. $URI  I am Long stock at $90 (since 2/11) with a March 95/90/82.5 Collar PS. Options Net is: $8.47
  6. $UVXY  I am Long the ETF at $24.64 and Short the March $30 Calls. Options Net is: $5.65

 

- DM 12:05 AM CST

 

A bottom of the barrel look at Boston Beer

SAM

Yikes.
I posted the above chart after I initiated a Short Stock position (2nd trip short stock, post-Earnings). I was looking for a B/O back-test to the $253 area noted on the chart.

It nearly got there as the low for the day is $253.01 (I have covered at $254.70 average). I will be looking for a U-turn Long now for some bounce — will use Options.

 

- DM 9:40 AM CST

 

Position Updates

Exits this week:

  • CF Industries $CF  I unwound the remaining Put Calendar for a $2.27 credit on Thursday. Overall gain: $26.23
  • Foundation Medicine $FMI  I unwound the Diagonal Bear Collar and Short Stock on 2/17. Overall gain: $29.90
  • VASCO Data Security $VDSI  day-trade Long Stock position for +$3.10
  • FXCM $FXCM  I StC the Long $2.50 Calls for a -$.25 loss
  • Intel $INTC  I closed the position in the IRA on 2/18. Overall gain: $3.68
  • LyondellBasell $LYB  The Call Fly and Long Stock auto-unwound for me (Submarine Basket). Overall gain: $3.57
  • Tractor Supply $TSCO  The Long Put Ratio goes poof (Submarine Basket). Position held since 9/25/2014 (bummed the Long stock got called away this week). Overall gain: $18.17
  • Bunge $BG  see Fab 5 post for details

Submarine Basket:

50/50 Basket:

Earnings:

see post this morning for more details

 

Here is the Summary:

Positions_02212015

- DM 8:45 AM CST

 

Position Review

The February OpEx is today so a quick review of what I have left to tend to:

ResMed $RMD  I am Long the $65 Calls (part of a Call Calendar). I will likely take stock at $65

Cyber-Ark Software $CYBR  The Long 30/35 CS will auto-exercise for +$5

LyondellBasell $LYB  I am Long the 80/85/90 Call Fly with Long stock at $86.75 (a hedge). I will exit the trade by letting the Long CS auto-exercise for +$5 and the stock gets called away for -$1.75

Tractor Supply $TSCO  The Long 80/70 1×2 Put Ratio goes poof (was protection for a prior Long Stock position)

Fossil $FOSL  I am Long the 97/94/91 Put Fly. I am undecided still. One path: sell Puts at $90 in an expiration further out (use proceeds to unwind mid/bottom part of Fly) and take Stock Short at $97

Bunge $BG  The Short $85 Puts will get assigned and will unwind the Short Stock piece at $85. The Long CS will go poof (other part of the RRCS)

Ross Stores $ROST  The Short $87.5 Puts will go poof (remaining part of a Short Strangle)

 

Clients:  $CAT $INSY $ORLY $GILD $NLNK $SMCI

 

- DM 8:30 AM CST

 

Follow-up on a Trade Idea for Priceline Group

Here was my message on 2/18 via Social Media regarding a Trade Idea for $PCLN Earnings:

PCLN

Here is a closer look at the Daily chart I noted yesterday:

PCLN

A breakdown of the Trade:

  • Long the February 1160/1200 Call Spread
  • Short the February 1200/1050 Strangle
  • This trade could have been done for EVEN
  • This trade takes margin (until the Short Strangle pieces are closed)

With price hovering near the $1210 level today, lets’ take a look at how the Options look:

  • $1160 Calls:  $54.25
  • $1200 Calls:  $15.02
  • $1050 Puts:   $.05

If you don’t want to wait for Friday expiry you can take the trade off near a $25.00 credit.

 

- DM 11:50 AM CST

 

The next step for Cyber-Ark Software

I have a position in $CYBR in the IRA that I will be adjusting today. Here are the details:

  • I am Long stock at $40 (since 2/10)
  • I am Long the February 35/40/45/50 Split Call Fly (which is ITM, all pieces)

What I have elected to do is the following:

1) Leave the Long stock piece

2) Sell the July $50 Calls and use the proceeds to BtC the Short February $45 Calls (part of the Short CS, top part of the Call Fly). These short July Calls will be covered by the Long stock piece

3) I will let the Long February 35/40 CS (the bottom of the Call Fly) auto-exercise for +$5 at expiration

4) I will StC the Long February $50 Calls (will be left over after doing #2)

This will get the Options Net to around $13 at expiration on Friday.

 

– DM 9:30 AM CST