AMZN – we are net short on them with $60 calls sold against existing $42.50 puts and Oct $65 calls and I’m pretty confident in that play. Now that the short calls have paid for the loss on the puts, I will be stopping that section out on a rebound and letting the $65/60 spread ride most likely. XXX
MRVL – I have disastrous May $20 positions but I just dumped the May $17.50s on that ridiculous spike to $1.25 as that covered my losses. That was the only reason I took the $17.50s and it’s very bad to forget why you entered a trade. XXX Now I will roll my $20s to Aug $20s for $1 ahead of earnings (they are a report behind) as I think putting this option stuff behind them is a big deal. It’s why I bought the May $20s in the first place way back on 1/12 but it took longer than I thought.
HLYS – another mega hit but lawsuits are pending there. Due to tight margins I don’t like the risks with these guys but I didn’t buy CROX either so what do I know… From a pure math perspective I like seling the $40s for $2.05 against the Aug $45s for $2 since the Aug $40s are $3.65 which is more than you would owe your caller at $45 (up 20%). It’s a free trade with a $3 margin call so XXX for 5 in the $10KP.
Brent crude collapsing now – $63.95, NYMEX at $61! SU June $80 puts at $2.05 XXX
AAPL – (and this goes for all May/June positions) – 20% stops are still in effect and you should have stopped out of Jun $95s we sold (mine was $8.50) which should leave you with a $1 trailing stop on the July $95s. I’m going to take a chance and sell the June $100s for $6+ (no less than $5.25) as Apple has been crazy volatile. XXX May calls just don’t have enough preium to interest me and I don’t trust it to hold $100 enough to just protect myself with the May $105s. I’m taking out the $95 putter here at .12 as he’s doing me no good but I’m just going to hold my Oct $95 puts naked for now, hoping to sell closer puts on downward momentum a little later.
LCAV – If I read right that they are not spending much on expanding these things are a gold mine as they entrench in the market as they get positive word of mouth and the procedure gains accepance. Threat of lawsuits is much less than it was and the analysts seem to have no clue as to earnings capabilities as they have underestimated by an average of 20% for the past 4 Qs. I like the June $45s for $1.85 and 2/3 Jun $40 puts at $1.18 buying the puts first and hoping for a drop to buy some calls but certainly in before $2. XXX (I never got filled here)
20% stops – spreads are optional and dependent on what you can afford but I stop out the sold legs of my spreads as well when we get this close to expiration (you can always resell when momentum turns).
TASR – $10KP – 10 Jan ‘08 $10s for $1.30 ahead of Cramer madness tonight. XXX (good for other virtual portfolios too). You can sell $10s for .38 but I’m going to risk it until tomorrow. This is pretty risky as the leaps were at .60 last week so if we don’t get a move we get out or sell calls fast!
CSCO – I have the June $27.50s but I’m taking 1/2 off the table at $1.40 as it makes the rest a free ride. Hedged (barely) with the May $25 puts at .10.
