I don’t talk about it much but I manage an account for my wife. Below is a list of her positions:
$AKAM cost basis: 63.7909
$AMED cost basis: 16.8999
$INTU cost basis: 89.359
$NKE cost basis: 74.2896
$OCR cost basis: 71.241
$TJX cost basis: 61.469
$SBUX owns a July/July 02w $50 Call Calendar
Note: There are options involved with $AKAM $AMED $OCR
– DM 10:20 AM CST
I have written about using an Option Collar on several occasions here and here – and thought I would provide some additional thoughts on the Collar trades that I have on in January.
I currently have the following long positions on with an options Collar:
1) CREE with a FEB 26/28 collar in the swing account
2) DECK with a FEB 80/85 collar in the swing account
3) SBUX with a FEB 45/50 collar in the long term account
The positions for #1 & #2 where dip buys that bounced nicely and I really wanted to hold the positions for a swing timeframe – with a collar I am able to do that more easily.
With the long-term position in SBUX, I wanted to hold through earnings and didn’t mind the cap at the 50 strike – but certainly wanted the downside protection if any issue arose from the earnings release.
CREE is currently trading at 25.36 but the collar trades at 1.45/.25 for the 26/28 put/call for February 18 expiration which would leave a net of 1.20 if executed right now. Just a follow up to what has transpired since putting on the collar last week.