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

 

Trading Activity

Hershey $HSY  I have StC the May $95 Puts. I have added a Long June 95/100/105 Call Fly. The Short June $90 Puts remain so I now have a Risk Reversal Call Fly for June. Options Net improves to: $.95 (Submarine Basket)

Skyworks Solutions $SWKS  I have added Long stock at $97.75 (tag along for the $100 Roll, have a Call Calendar already, Swing account)

VMware $VMW  I have StC the May $90 Calls. I have adjusted the remaining Short July $95 Calls to a July 90/95/100 Call Fly. Options Net improves to: $.99 (Earnings)

Generac $GNRC  I am Long the May 40/42.5/45 Call Fly with S $40 Puts (1/2 size) in the Submarine Basket

 

– DM 11:00 AM CST

Position Updates

I had activity this week in each of the 3 accounts:

Altera $ALTR  I traded the Intel rumor on 3/30 (exit the same day)

Emerson Electric $EMR  I tagged along in a large April $55 Put trade (Long)

Skyworks Solutions  $SWKS  I adjusted April 02 weekly Put Ratio (Long stock protection) to the April 24 weekly expiration

Trex $TREX  I traded the breakout but it fizzled (hit a Stop for +1.17)

Avago Tech $AVGO  I added a May 125/115 1×2 Put Ratio (protects Long stock)

ProShares UltraShort 20+ Year Treasury $TBT  I unwound the rest of the position when the Long ETF piece hit a Stop

Carmax $KMX  I am Short the April 72.5/65 Strangle and Long stock at $74.15 (hedge, 2nd trip long). Only new Earnings trade this week

Submarine Basket

04032015

50/50 Basket: no positions

 

Here is the Summary:

Positions_04032015

– DM 9:10 AM CST

 

Managing a Risk Reversal starring Skyworks Solutions

On November 18 I initiated the following trade for my Long-term account:

December 05 weekly 63/65/61 Risk Reversal Call Spread (RRCS)

On 11/26 I adjusted the short Calls to the December 26 weekly expiration. So, as of this adjustment this is how the trade currently looks:

  • Own the December 05 weekly 63/61 Risk Reversal
  • Short the December 26 weekly $66.5 Calls

As of today, price is probing the $69 level so I need to decide which path to take with the Long $63 Calls for tomorrow expiry:

SWKS_E

Here are a few paths to take:

1) Let the Long Calls get assigned, take stock at $63. The Short $61 Puts go poof nonetheless. I would then have long stock with short December 26 weekly $66.5 Calls (covered calls)

2) StC the Long $63 Calls and use the proceeds to BtO Calls in the December monthly or Dec 26 weekly expiration (maybe at $65 for example)

 

 

StC = Sell to Close

BtO = Buy to Open

 

-DM 10:38 AM CST