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

 

LinkedIn Earnings trade review

I have an existing Put Calendar in $LNKD for some clients but wanted to leave the door open for stock trading in the after hours session. The May 01w Straddle was pricing in a $20 move – and that ended up being CHEAP.

I elected to ease into the stock once it started probing the October 2014 lows in the after hours session. I ultimately put on a 1/2 size long stock position and left it on overnight. With the stock holding near the $200 level this morning in pre-market I decided that I would leave the plan to sell a Strangle for next week (1/2 size, 205/200 strikes).

I changed my mind.

I have elected to StO the May 01w $205 Calls (1/2 size) collecting a $5.40 credit right after market open. These Calls are covered. I have a Stop set at $201.50 on the Long stock for now. If the Short Calls are able to expire worthless today, my cost basis will lower to $182.51

 

– DM 8:45 AM CST