Trading Activity

I have added 3 new Earnings trade since my last update here:

  • RF Micro  $RFMD  I am Long the November 12/13 Call Spread. Options Net: $1.195
  • Ruger  $RGR  I am Long the November 47.5/45/42.5 1×2 Split Put Ratio with short stock at $43.65 (tag along but could become a hedge)
  • Expedia  $EXPE (noted the info on the trade on a prior post, it will expire today)

Using RSI as a trade signal starring Workday

part of the Simple Approach series

 

Sometimes a chart provides a very clean look at what happens at key moments. For an example, let’s take a look at how price reacts when RSI gets near the 70 level (over-bought) on $WDAY:

WDAY_D

Now you have to consider the following:

1) Double Top?
2) Cup is built so does it build a handle now?
3) Just a normal Inside Day today
4) 50/200 SMA congestion

A follow up: the Earnings aftermath

I posted some info from my Earnings database yesterday and thought I would do a follow-up post to see how the Trades have played out so far:

Facebook $FB (have position)

  • Long December $80 Straddle
  • Short October 31 weekly $80 Straddle (a Straddle Swap) for a $3 debit
  • October 31 weekly $80 Straddle is now:  .18/3.50
  • December $80 Straddle is now:        2.18/5.60
  • The next step: sell a Straddle or Strangle 2 weeks out to buy back the October 31 weekly $80 Straddle — pick strikes that allow some credit. Example: November 14 weekly $76 Straddle for $4.60 to BtC October 31 weekly $80 Straddle for $.90 credit net
  • I have traded stock in pre-market for a $2.75 gain

Panera Bread $PNRA (have position)

  • A LBW (Look Both Ways) trade
  • Long November 170/175/180 1×2 Split Call Ratio
  • Long November 170/165/160 1×2 Split Put Ratio
  • This was done for an $.18 debit
  • I have traded stock in pre-market today on the short side (given the post-Earnings reaction was negative)
  • I have unwound the Call Ratio for an $.80 credit today (frees up some margin too) so just the Put Ratio remains
  • I have a Sell Short Stop set at $160 now (for stock)
  • Options Net/cushion is now: $3.39

Wynn Resorts $WYNN (no position)

  • Long November 185/190/192.5 Lopsided Call Fly with Short 172.5 Puts
  • This trade was available for a $.30 debit
  • This trade takes margin
  • Price is hovering near the $190 level so it is in the sweet spot for this trade
  • If you did this trade go ahead and BtC (Buy to Close) the November $172.5 Puts to free up margin (under $.10 right now)

Eagle Materials $EXP (no position)

  • Long November 90/85 1×2 Put Ratio
  • This trade was available for EVEN
  • This trade takes margin (at least until 1x of the short $85 Puts are closed – thus leaving a normal Put Spread)
  • Price did react positively but has faded today so there is still a lot of time to get some value from the $90 Puts at least (the $90 level is right near the 200 SMA)

 

 

 

 

 

 

Trading Activity

Newly added today: none

Adjustments to existing positions:

  • $TRV  I adjusted the short Nov 97.5 Calls to December 97.5 for an $.80 credit. I now own a Jan/Dec 97.5 Call Calendar. Options Net now: $.15
  • $VDSI  With a very nice positive reaction to Earnings I have had to uncap the Call Spread (part of a RRCS for November): adj Short November 20 Calls to December 22.5 Calls for a .80 debit. The RRCS is now Nov/Dec 17.5/22.5/15 (Dec piece is the 22.5 Calls) RRCC with an Options Net of: -$.47
  • $LVS  Noted earlier in my stream, position is now closed (Submarine Basket)
  • $TEN  added Short November $50 Calls for a 2.40 credit (covered calls, Submarine Basket)
  • $ROP  the Buy Stop at $153 triggered today (Earnings)
  • $TWTR  I have BtC (Buy to Close) the short October 31 weekly $58 Calls. The Long October 31 weekly 48/44/40 Put Fly with short stock at $43.78 remains

 

RRCS = Risk Reversal Call Spread

RRCC = Risk Reversal Call Calendar

Trading Activity report

I had a good working list of opportunities from the weekend prep work with 3 trades hitting my trigger area this morning:

  • $BABA  I am long stock at 96.34 with a November 07w 100/98/90 Collar PS
  • $EWZ  I am long the ETF at 37.65 with a November 07w 40/39/37 Collar PS
  • $GPRO  I was long stock but have closed the trade already. Earnings this week so I will consider a trade there if the Options look priced well to do so

Roper Industries ($ROP) reported Earnings this morning and the trade behaved decently so I elected to StC (sell to close) the Long November 150 Calls. This leaves the upper 3 pieces of the Call Fly (short $155 Calls 2x & long $160 Calls) – and the Short $140 Puts remain. I have a Buy Stop set at $153. Options Net is now: $6.40

Position Updates

A mild week for trading in the regular personal accounts (Swing, Long-term, IRA) with only 1 new trade and 2 exits: $TRV $LMT $SLXP. Adjustments this week: $UVXY $DVA. The focus continues to be on Earnings trades as we are in the heart of the season now.

50/50 Basket:

currently no positions ($APT & $LAKE were closed this week)

Submarine Basket:

Earnings:

Here is the Summary:

Positions_10252014

Long-Term & IRA account positions review

Long-Term account:

  • $AIG  I remain long at $39 (since 02/08/2013) and short the November 50 Calls (covered obv). Options Net: $9.67
  • $COW  I remain long at $29.5
  • $GME  I am short the November 44/45 Call Spread. Options Net: $2.58 with stock gains of $5.40
  • $TAN  I am long the November 40/43/46 Call Fly. Options Net: $1.70

IRA account:

  • $ACHN  I am long the January 2015 12.5/20 Call Spread. Options Net: -$1.80
  • $DVA  I am long at $54 (since 10/11/2012) and short the January 2015 67.5 Calls (covered obv). Options Net: -$2.27 and stock gains of $11.85
  • $INTC  I am long at $31.5 with a Dec/Nov 33/33/29 Collar PS. Options Net: -$.01
  • $MAR  I am long at $59.5 with a Jan/Nov 65/67.5/0 Collar PS. Options Net: $.24
  • $MBLY  I have a December 45/60/45 Risk Reversal Call Spread. Options Net: $.63
  • $SLCA  I am short stock at $60. I am short the January 2016 $70 Calls & December $60 Puts (covered). Options Net: $11.38 and stock gains of $34.25

 

Swing Positions review

A quick review of current Swing positions in the personal account:

  • $CRR no material change this week, I remain short stock at $70.08 (2x size) and short the November $60 Puts (2x size). Options Net is: $4.48 and stock gains of $21.84
  • $LMT  I remain short the November $160 Puts. Options Net is: $3.15
  • $UVXY  I remain short the November 45/40 Strangle and short the ETF at $40 (a hedge). Options Net is: $22.96 and gains from ETF hedges of $4.56
  • $VDSI  I continue to own the November 17.5/20/15 Risk Reversal Call Spread. Options Net: $.33
  • $VNET  I remain long at $14.92 with a Dec/Nov 26/22 Diagonal Collar. Options Net: -$.18

Position Updates

Personal Accounts

I was active in the Swing account again this week but only one newly added position survived to the weekend:

  • $LMT  Long the November 180/190/195 Call Fly with a short October 185/170 Strangle

Submarine Basket update here

50/50 Basket update here

Earnings Trades:

  • $AZO  I own an October 510/520/530 Call Fly (have a Buy Stop set at $520 as a hedge). Options Net: $1.16
  • $JCP  I am long the January $10 Straddle & short the October 10 weekly $10.5 Straddle. Options Net: -$.68
  • $RRGB  I am long stock at $49.9 and short the December 60/55 Strangle. Options Net: $4.45
  • $SNX  I am short the October 65/60 Strangle and long stock at $65 (hedge). Options Net: $5.21 (new this week)

Here is the Summary:

Positions_10042014