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


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


Baidu earnings preview


The above graph is via Estimize showing the recent EPS information (I’ve added the Red horizontal line). Below is a Daily chart where I’ve added a horizontal line (black) showing where price is currently testing (50 SMA is joining in the fight as well):


Now armed with this information, what are trade considerations? Here are a few:

If Bullish

Long the 200/210/185 RRCS (Risk Reversal Call Spread)
Long the 200/210/220 Call Fly with short $180 Puts

If Bearish

Long the 195/190 Put Spread and short the Aug 28w/July 31w $205 Diagonal Call Calendar
Long the 195/190/185 Put Fly

– DM 10:40 AM CST

The Diagonal Put Calendar starring Baidu

I did an Earnings trade for $BIDU on 4/29 and wanted to do a brief review of how things stand now. Here is the initial trade:

  • Long the May/June 210/200 Diagonal Put Calendar (DPC)
  • Short the May 01w $240 Calls
  • This was done for a -$.02 debit
  • This trade takes margin

After the event I did trade long stock in the after hours session for a gain of $8.58. I was able to BtC (Buy to Close) the May 01w $240 Calls for a penny debit the next day (so that freed up some of the margin use).

So now I am left with the May/June 210/200 Diagonal Put Calendar. Let’s take a look at the Daily chart to see where price is:


As you can see price has fallen down through both strikes of the DPC so I need to update my plan for what I can do at expiration next Friday. Here are some choices:

1) Take short stock at $210

2) StC (Sell to Close) the Long May $210 Puts and then adjust the Short June $210 Puts down & out to a future expiration

3) Unwind the DPC for a nice credit & close the trade


– DM 9:45 AM CST