The Fab 5 update ($100 Roll)

The Fab 5 basket saw a lot of activity this week which included tending to July Options that were set to expire. In addition, I added 2 new positions as subs: $AMT $MCO. I had one exit: $LYB for an overall gain of $6.71 (the short July 97.5 Puts expired worthless, kept premium collected) and it goes in to the Complete status category.

Here is the Summary:

07192014

 

 

Position Updates

This was a very typical Options expiration week with a few surprises along the way to my Plan posted last weekend. Aside from the focus on existing positions with July options, I did manage to add new positions that survive to the weekend: $CHL $INTC $KNDI $JPM $SWKS $CBI $GNRC.

Exits (primarily due to July Options expiration plan):

Earnings:

07192014

50/50 Basket:

Here is the Summary:

 

Positions_07192014

The Volume Bar buy signal

part of the Simple Approach series of blog posts

For traders that like to trade with simple triggers you may find this of interest. I use RSI and Volume Bars as Buy/Sell triggers and so I like to offer examples to show what I mean.

For an example using Volume Bars as a Buy signal I bring you $CAB:

CAB_volume_bars

As you can see above, I highlight several Buy points (blue vertical line). Here are the details:

1) Buy the next green Volume Bar – after at least 3 Red bars in a row

2) There have been 6 triggers so far with #7 in the works now

3) Use your own Stop and/or Risk parameters for exiting each trade that you would take

4) Trigger #4 is likely a loser

 

Chicago Bridge & Iron

part of the Big Footprints series of blog posts

I often state that Option flow is an increasing important data point in a trade decision – whether you actually trade Options or not. I see continued growth in what I call “big footprints” in the Option Chains daily and thought I would highlight $CBI this week.

Here is a Daily chart:

CBI_B

A Channel has formed over the past few weeks. Now on to a big footprint that someone left in the August option chain:

CBI_Aug_Options

One additional comment on this: I realize that there will be a variety of reasons for an unusual Volume day at a particular strike and/or chain. It could be someone rolling up, it could be a hedge, etc. My point here is to simply show that regardless of the reason – it is a big footprint.

Earnings Trades update

We have officially kicked off the new Quarter Earnings season so I expect to see my focus continue to increase in this area of my trading. I was light this week on new trades but will end the week with new positions (left over short July pieces) in $PSMT & $TCS.

Here is the Summary:

07122014

 

Position Updates

I did an update earlier this week summarizing the trading activity this week here and all the newly added positions survived to the weekend (exception is $LL but I already noted that it was exited).

Submarine Basket:

Earnings:

50/50 Basket update was done on the blog Thursday. No material changes on Friday.

Here is the Summary:

Positions_07122014