One perspective showing price spending a LOT of time in this box and the 50/200 SMAs colliding.

– DM 11:50 AM CST

Bottom Fishing

Now that we are into the heart of Earnings season, my list of stocks that are getting beat up post-Earnings is growing. Although I have a full Submarine Basket at the moment – primarily where I would add new positions for these – I am considering creating a 2nd basket.

Here are just some tickers from the growing list of candidates:

$BIIB (I added to the Submarine Basket on 7/24)

There are also numerous pull-back candidates that are at interesting Buy points. Here are 2 well-known brands:



– DM 9:30 AM CST


Earnings preview for Adobe and FedEx

Weekly charts


I like the June 80/82.5/85/75 Risk Reversal Call Fly for an ADBE earnings trade (long the 80/82.5/85 Call Fly and short the $75 puts).


I have an existing position in FDX but for an earnings trade consider this:

Long the June 182.5/185 Call Spread
Short the June 177.5 Puts
Cost: $.20 credit
Takes margin

– DM 10:40 AM CST


Trading Activity

Busy in the Submarine Basket today:

$DNKN  The Long stock piece hit a Stop. The Feb Call Ratio remains

$FDX  I StO January 23 weekly $177.50 Calls (covered by stock). Options Net is now a beefy: $8.20

$TSCO  The Long stock piece hit a Stop so the Collar Put Ratio becomes a Bear Risk Reversal Put Ratio. Options Net remains: $2.22 and stock gains of $7.07


– DM 10:30 AM CST


Trading Activity

Personal Accounts:

Agco Corp $AGCO  I have StO the January $45 Calls so now have a 45/45/40 Collar PS. Options Net improves to $1.43 (Submarine Basket)

FedEX $FDX  I have StO the January 175 Calls so now have a 170/175/170 RRCS. Options Net improves to $2.68 (Submarine Basket)


I have exited an $EXPE position for some clients today



StO = Sell to Open

RRCS = Risk Reversal Call Spread (Long a Call Spread, Short Puts)

PS = Put Spread


– DM 11:05 AM CST