Walt Disney is on a wild Roller Coaster

DIS_D

The 200 SMA is Rising from below and we should see price test it very soon. The RSI is under 30 but there still hasn’t been any convincing floor put in the stock yet in my opinion. The MACD remains in a free-fall.

This breakout back-test looks to have a target of $102.50 so one could consider buying a Put Ratio. Why? For these reasons:

  • capture any additional short-term weakness
  • If the “meat” of the Put Ratio gets ITM then you still have the lower short Puts that you can manage (you will get a bounce eventually so getting Put stock at that strike is just fine)
  • lower cost than just buying Puts outright (depending on structure, can get a credit)

An example structure:   long the August 28 weekly 105/102 Put Ratio. Cost is under $.30 and can make $3 if at $102 on expiration.

– DM 9:40 AM CST

Earnings reaction in Walt Disney

Let’s look at a Daily chart first:

DIS_C

A Doji for $DIS has formed under the Rising 50 SMA but above the Breakout back-test level (defined by the horizontal Black line).

Now for some perspective – a Weekly chart:

DIS_weekly

Up trend remains in tact so likely an opportunistic Buy entry here for traders who have been waiting on a pullback.

 

Disclosure: I traded the stock in after hours on 8/4 but have switched to an August 28w 111/116/110 Risk Reversal Call Spread today for a post-Earnings trade.

– DM 9:10 AM CST

July 31 weekly Options expiration

I have 7 existing positions that include Options expiring today. Here’s the plan:

Caterpillar $CAT  I am long the 85/82.5 Put Ratio. I am short stock at $82.5 (hedge). I will let this trade auto-unwind for +2.50 (thus closing this Submarine Basket position). The Options Net final will be: $4.91

priceline.com $PCLN  I own the July 31w/Sep 1160/1230 Diagonal Call Calendar with short weekly $1140 Puts. I will take stock at $1160 with short September $1230 Calls (covered calls). The short weekly $1140 Puts will go poof. Options Net remains: $8.70 and booked stock gain remains: $4.22

Skyworks Solutions $SWKS  I am short the 110/115 Call Spread – which I will let expire. Options Net final: $10.51 and booked stock gain: $2.27

Financial Select Sector SPDR $XLF  I am long the ETF at $25.30 with short weekly $25.5 Calls (covered calls). Current Options Net: $.59. I will adjust to a future expiry

Earnings:

Baidu $BIDU  I am long the 200/210/220 Call Fly and short the $180 Puts. I will adjust the short Puts to a future expiry. The long Call Fly goes poof. Current Options Net: $.69 and booked stock gain: $11.33 (from the hedge)

United Parcel $UPS  I am long the 95/98/100 Call Fly and short the $93 Puts. I will: take stock at $95, adjust the middle of the Call Fly to a future expiry, StC the long weekly $100 Calls. Current Options Net: $.68 and booked stock gain: $1.47 (from the hedge)

LinkedIn $LNKD I am long the 230/240/250 Call Fly and short the $190 Puts. I think this whole trade goes poof today. Options Net: $.79 and booked stock gain: $36.225 (from tag along short in after hours 7/30)

 

– DM 9:00 AM CST

 

July 24 weekly Options expiration

I have 6 positions that include Options for the July 24 weekly expiration:

$AXP  I own the 78/79.5/81 Call Fly (which looks to go poof). Options Net: $1.63 and booked stock gain of $.29

$MU  I am long at $18.75 with a 19/17.5 Put Spread. I will likely adjust this PS to a future expiry. Options Net: $1.95

$MA  I am long at $92 with short $94 Calls (covered calls). Fab 5. I will adjust the short Calls to a future expiry. Options Net: $3.52

Earnings:

$IBM  I own the 175/177.5/167.5 RRCS. I am short stock at $170.44 as a hedge. Options Net: $.25 This trade should auto-unwind for +$3.19

$CMG  I own the 675/695/620 RRCS.  I am considering adjusting the short $695 Calls to a future expiry & taking stock at $675. The short $620 Puts will go poof. Options Net is currently: -$.46

$GPRO  I am short the 65/55 Strangle and long stock at $63 (hedge). If this does not get called away then:

The short Strangle goes poof
I will consider keeping the stock & sell premium against it for next week
Options Net is currently: $.41

 

– DM 10:25 AM CST

 

Monthly Options expiration for July

Seems like I do this every 4 days lol

Here is what I have in existing positions that include July monthly Options as part of the trade:

$CRM  I own a 75/82.5/67.5 RRCS. Options Net: -$1.50 and booked stock gain of $9.45. Should go poof

$FLTX  I own a 45/50/55 Call Fly. Options Net: $1.32 and booked stock gain of $.50. Want to get some value from the long $45 Calls

$IACI  I own a 75/80/85/70 Risk Reversal Call Fly (L 75/80/85 CF, S $70 Puts). Options Net: $.53 and booked stock gain of $.45. Sweet spot here with price near $80

$RENT  I am long stock at $57.82 with a 70/65 Collar. Options Net: $1.18. Will likely adjust to an August Collar

$PCP  I am short stock at $207 with a Sep/July 250/200 Risk Reversal (the Puts are the short July $200). Options Net: $.25. The short Puts will assign, short stock get called +$7

$QRVO  I am long stock at $76 with a 85/85/75 Collar Put Ratio. Options Net: $2.03. The long $85 Puts are well ITM so I am not sure if I will adjust or let the position unwind

$XLF  I am long the $25 Calls. Options Net: $.12. Likely goes poof

$CYBR  I am long stock at $40 with $75 Puts. I will let this position unwind for +$33.20

$ESPR  I am long at $76.44 with a 85/75 Put Spread. I will adjust this to August (have short $90 Calls there as other part of the Collar Put Spread)

$JCI  I am long the $50 Calls. Likely goes poof

$MAR  I am long at $59.50 and long a 80/70 Put Spread. I will adjust the PS to a future expiry

$BWA  I am long a 57.5/60 Call Spread. Options Net: $1.74. This CS should go poof.

$HSY  I am short the $90 Puts. Options Net: $.57 and stock gain: $.17. Looking for these short Puts to go poof

$RH  I am long at $90.04 with a 100/100/95 Collar Put Spread. I will adjust to a future expiry

$TSCO  I own a 95/90 Risk Reversal. I am short stock at $90 (hedge). I will exit this Fab 5 position. Options Net: $.22

$DATA  I am long at $97 with a July 120/110 Put Ratio. I will adjust the PR to August

$ROST  I own a 50/52.5/48.75 RRCS. I will exit this Earnings trade

$SONC  I am short the 35/30 Strangle. I am short stock at $29 (hedge). Options Net: $1.04 and booked stock gain: $1.63. I will exit this Earnings trade

$LEN  I am long the 50/52.5/55 Call Fly and short the $47 Puts.  I will exit this Earnings trade

$STZ  I am short the $120 Calls (2x), long the $125 Calls, and short the $115 Puts. Options Net: $2.18 and booked stock gain: $2.20.  I will exit this Earnings trade, remaining Options should go poof

$PAYX  I am long at $44.66 with a 48/47/45 CPS.  I will exit this Earnings trade

$PEP  I am short the $97.5 Calls (2x), long the $100 Calls, and short the $94 Puts. Options Net: $1.88  I will exit this Earnings trade, remaining Options should go poof

$PSMT  I am short the 95/90 Strangle and long stock at $95 (hedge). I want this to go poof. Options Net: $3.22

 

 

– DM 11:00 AM CST

 

Options Expiration – July 10 weekly

 

$DTV  I own the 90/94/88 RRCS. I will StC the $90 Calls before eod. Fab 5. The other 2 option pieces will go poof

$YUM  I am short the $92.5 Calls. Fab 5. Should go poof

$XLF  I am short the $25 Calls (part of a Call Calendar with next week $25 Calls). Long-term account. Should go poof

$PCLN  I am short the 1150/1090 Strangle. Submarine Basket. Should go poof


 

For clients:  $AAPL $COST $DECK $PG $XLF

 

 

– DM 9:30 AM CSt

 

A sketchy chart

If I were long $SKX I would be focused on protecting the gains from this April move. There are going to be a lot of weak hands in this one now – chasers too – that won’t hang around once the Bear Raid begins.

Be prudent.

At least buy Puts if long.

SKX_B

– DM 11:40 AM CST

 

Extending credit in American Express

I have a position in $AXP for the Submarine Basket. Here is how the position looked coming into today:

I am short the July 24w $81 Calls
I have an Options Net of $1.52
There is no stock at this time

Today I have chosen to add the following Option pieces to create a 78/79.5/81 Call Fly:

Long the July 24w $78 Calls
Short the July 24w $79.5 Calls (2x)
Switch from short to long the July 24w $81 Calls

This adjustment was done for a $.11 credit so the Options Net improves to $1.63 and frees up some margin use.

– DM 9:30 AM CST