Friday, May 09, 2008

Position update

PCLN Long Butterfly Spread ER Play:
Took the chances for non-simultaneous executions: covered MAY 125 call at $13.9 when it fell to near 138; sold both May 115 call (at $26.2) and 135 call ($8.05) in the early going when it was around 141. The net profit is just over $400 (what can you say, Razor's prediction was right!). Had I closed all the positions simultaneously, I would have lost any where between $60-300, which was not bad. The key of this play is that as expected, the IV absolutely collapsed post-ER (near 30% drop!!!).

MON and AAPL puts:
still holding with small profits as my stops are very close.

On the market:
not sure if the market has found intra-day low yet. It is worthwhile to point out that if the major indices close poorly today, there will be a bunch of bearish engulfing candles on the weekly charts, which would spell trouble for the multi-week rally. We will see, maybe bulls can come back later today...

6 comments:

RazoR said...

well my day looks over, for the week
drys 7 pts
crox 2.5
nile straddle -3 bastards
nvda strangle 0 turds
still have v at 83 but lost 5pts in gains. On the fence if I should buy a small kicker in drys at 90.
Tonight I will straddle a corona with a white russian, and strangle myself with two blonds, happy trading Wabbit!

flyingwabbit said...

Razor:
way to go bro!
about your straddle plays on NILE and NVDA, consider the short ones next time, I will do more analysis on this whole "how to play ER using option strategy" issue..
I really like your mix of straddle and strangle plays for the Friday night fun :) Just make sure you don't over do it :)

RazoR said...

Its really interesting, we all have ideas/plays sometimes it works, you nailed some big ones lately...on Nile I figured it would be +-5 but no dice...on nvda it was $21 so I bought 17.5p and 25c because they were both .10 and I figured if there wasn't a catastrophic er, it still might move somewhere by expiration, so much for ideas, remind me to punish myself everytime I play nvda, the mm's are a bitch...play of the week, crox, they had pre-announced and I lost $700, found a 5 day loading pattern(9mil ave) so bought 1k at 9.97, sold at 12.50 pre-market...45mil shares went off that day, sounds about right, might buy again at the fill, shoes, yuck what crap...:P

pcaguy said...

I had a good week for me. Thursday close sold balance of OIH calls for $18.75. Bot back OIHGS this am for $18.09 and sold them late today at $19.9. Closed out EL Puts trade for $3 sell, about $.25 on 225 contracts. EL was up the last few days even though EL posted cruddy earnings. The Jersey boys scared me enough that I just took my quarter even though I was hoping for $2. EL should sell down to $41 based on their earnings report but when the market makers push a crappy stock up I am unwilling to take that risk. I will watch EL closely to re-enter a much smaller position when it turns down.
Sold my SKF calls Monday for a small profit when SKF was $95. Today SKF was $103.95, I need more patience.
Freshly opened positions:
Bot BRL Aug 35 calls -BRLHG at $4.8 yesterday. BRL at 4 year lows and I think generic drug makers will thrive if Democrats win.
Bot UYG today $31.82 equivalent which is the reverse of SKF. Ticker UYGIE cost $8.50
Bot 5 contracts ATVI Aug $35 puts at $4.4 at todays close when ATVI was $31.64Ticker -AQVTG cost $4.40 ATVI had good earnings but I am banking on a selloff similar to ENER on the second day.
Will rebuy OIH calls if OIH goes back to $203-$204 again.
PCA GUY

pcaguy said...
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flyingwabbit said...

pcaguy:
congrats on the winning week! Very interesting trading calls and analysis to say the least! As for the patience, it becomes a much harder virtue when you are trading options:)