TASR – just a buying opportunity here. I’ve got the ‘08 $15s, now back to $2.15 and I cashed in the $17.50s I sold against them at $2.80 for .25 and then sold the $15s against for .80, now .47 so how can I be upset? Back down here I’m going to roll to some ‘09 $12.50s at $5 and work my way back.
WFR – I’ve got the Jan $60s naked and I’m waiting hopefull get a couple of bucks for the $65s but I will sell the $60s for $2 if the market (especially the SOX, which are already sub 500) starts to break down.
XOM in a death spiral! Other majors following. I’m tempted to go with XLE $67 puts but this is the point when they usually turn around so I will be patient… 8-(
JBX – new sirloin burger was a big hit and they got a very big, unwarranted sell-off from last earnings. The sirloin is $4.49 vs $1.39 for their regular burgers. I like the Mar $70s at $4.95, selling 3/4 the Sept $65s for $3.40 which puts you in for $2.40 with 5 months to roll. XXX
I’m trying to decide if we can put together another 100 points and the SPY is far behind the DIA this morning so I’ll take a shot at the $147s for $2.55 XXX
XOM $90s, now .45, usually good for a 50% gain on a run. XXX
Here comes VLO finally – Valero Rule in full effect with mass confirmation. CVX $85s at $1.43 are a better deal than XOM calls. XXX
CAT – I don’t roll the month until my caller has less than 30% premium and preferably not then. 2 weeks before expiration you should roll yourself so you don’t get wiped out like your callers ususally do if you hold them to the bitter end. That’s the beuty of selling calls – they can’t leave! You can crush every last penny of premium out of their calls and even tear up their contracts worthless if the stock doesn’t hit their overly enthusiastic targets within 11 trading days. What arrogant suckers these call buyers are! (subtle lesson there…)
AAPL – may flatline but I think $135-$140 is most likely as they are lacing an event/excuse to take it up sharply and they do want to sell those September calls.
CCJ – too worried they may pop but you can scalp the Sept $45s against half with no worries to the upside.
NILE – I think those shorts may be tragically wrong. TIF is doing well, we just had the 7/7/07 wedding weekend (4x normal marriages have to translate to some bottom line) and expectations aren’t all that high.
VLO rule – this goes back to that 1min/10 min thing as well as scaling. portioning and patience. The CVX $85s went from $1.43 to now $1.27, not even worth putting in a second round buy yet. While that was (12:03) the wrong timing, the whole group did indeed turn down clearly at 12:11 but I’m not trading on the 1 min chart (or it would have been a mo play):
EDU – agreed BBD, not selling $55s up here for $1.82 is silly. XXX
TASR – I said yesterday, if you don’t like a highly manipulated stock then this is not for you. When you are a seller of options though, this stock is your best friend. I will sell 1/2 $15 calls, now .97 when it stops going up.
I am out of ALL Aug calls and puts as I’m going away but I am leaving some callers and putters on, putting a lot of faith in the magic of the internet allowing me to trade from a boat!
ONXX – sorry I missed Happy’s post on that one! He hit it pretty much to the second. Too late I think but earnings aren’t until the 7th and they’ll pay you $1.75 for the $30s so you can sell those against the Nov $35s at $2.02 on this run. XXX
