Earnings Trades update

Centene $CNC  The Long stock hit a Stop at $70 so the Short September $67.5 Calls are all that remain. Options Net: $.93 & stock gains of $20. Activity this week

Twitter $TWTR  I remain Long stock at $41.99 (since 2/5) and Short the June $45 Calls (covered calls, need to adjust soon). No change this week

Celanese $CE  I am Long stock at $60 (since 4/17) and own the May 70/65/60 Collar PS. No change this week

Royal Caribbean $RCL  I am Short the May 75/70 Strangle. The Long $70 Calls have already been closed. I have Buy/Sell Short Stops set at 74/71 respectively. The Sell Short Stop has triggered this week. Activity this week

VMware $VMW  I am Long the May/July 90/95 Diagonal Call Calendar. The Short $79 Puts have already been closed. No change this week

Thermo Fisher Scientific $TMO  I am Long the May 135/140/145 Call Fly with Short $125 Puts. No change this week

O’Reilly Automotive $ORLY  I am Short the May $230 Calls (2x) & Long the May $240 Calls. The Short $200 Puts & Long $220 Calls have already been closed. There is a Buy Stop set at $227 (hedge). Activity this week

Edwards Lifesciences $EW  I am Long the May 140/145/150/155 Call Fly. The Short $130 Puts have already been closed. I am Short stock at $136. Activity this week

Buffalo Wild Wings $BWLD  I own the May 180/185/165 RRCS. I am Short stock at $165.60 as a hedge. There are stock gains of $2.20 from after hours trading on 4/28. New

Ultimate Software $ULTI  I own the May 175/180/185 Call Fly (this was adjusted on 4/29 from a CS) with Short $170 Puts. I am Short stock at $170 as a hedge. New


- DM 10:45 AM CST


The Fab 5 ($100 Roll) Time Rule

I have had a Time Rule for the Fab 5 for several years. Here was the original rule:

The $100 Roll must complete within 30 trading days from trade initiation

I updated the rule this year to have 2 “stages” that each trade must complete. The Time Rule is now:

Time Rule (2 stages):

Stage 1: price must improve 3% in the initial 15 Trading days.

Stage 2: 30 Trading days to complete the $100 Roll (if it makes it past Stage 1)

- DM 10:00 AM CST


Skyworks Solutions

This company provides components to Apple for use in products like the iPhone. It has been struggling since trying to break above the key $100 level in March. Now that the Earnings for $AAPL are over, will $SWKS see more short-term weakness into Earnings on 4/30?

Here is the Daily chart for $SWKS:


- DM 9:15 AM CST


Akorn Inc.

This is what can happen when a company has to restate financials:


I have initiated a new trade:
– Long the May 45/40 PS
– Short the June $40 Puts
– Cost: .21 debit
– Takes margin (until the Short June Puts are closed)

- DM 12:10 PM CST