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...


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...

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 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.

pcaguy said...
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flyingwabbit said...

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:)