From the morning post:
10 IMCL Jan $40s at $5.90 for the Happy 100 Folder (came in at $6.30).
10 DELL $27.50s for the $10KP – no fill
HBC $90 put was just .95 on Friday – filled at $1.05
MSFT 10 Apr $30s in the $25KP at $1.60 – filled at $1.80, sold $30s at .52
PCR Apr $55s at $9.60 – did not get, lost interest for now
SYX Dec $22.50s are $1.35 and we will risk 10 of these in the $25KP with a stop at .35 – Rolled for another $1 to the $20s so $2.35 basis.
Protecting the Happy 100 is tough as Happy is opposed to it but that’s what my STP is for. I think it’s madness to make plays without a downside and I do still like rolling the FXI puts up as you’ll get an unbelievable pop if that thing falls apart and the spreads on the Jans are low. A 700-point gain knocked the FXI Jan $150 puts down about $2 and I will gladly spend $3 more to roll up $10 to the $160 puts. XXX
Tight stop for Dell is at the open, like now we are not even taking it. Hopefully it will hold $27.75 and consolidate there a bit but the SOX are down, IBM is down, GS is down… HPQ is doing well though, that’s one in our favor. Since the $27.50s are $1.12 now I will bid $1.05 for them and set a stop at .90 as that would be a pretty nasty fall for the day but not a terrible loss for me.
NYX is a short at your own risk deal.
This is not a strong morning so far, I’m wondering if energy is going to take us down but it’s hard to believe that can actually happen anymore…
Picked up some FWLT $125 puts at $3.80, they have miles to fall.
CROX Jan $60s for $7.40 XXX will sell current $60s later.
AAPL/GOOG/ – wait. There’s a point at which it’s worth rolling up your callers but not yet. Effecively you would be panic buying out your caller at max volatility and then you will be taking undue risk on either the next sale or that when the V collapses you will get far less premium.
GS – I’mbuying Jan $220s to match my 20 $210s, I will roll my caller to 2x the Oct $210s when GS runs out of steam (if ever!).
Dallas Fed MFG index 4.5 in Sept vs. 21.6 in August – no sign of a slowdown is there?
IRBT taking off!
IMCL moving.
HBC $90 puts for 1.05 XXX Last 3 ratings on them were Apr Outperform from BSC, July Overweight from LEH and an Aug Buy from C – it only takes one of them to change their mind…
CROX – I don’t know about selling just because they hit the ATH and didn’t smash through. It’s a great day gain already but I’d rather get 5% for selling the $60 call and covering 1/2 my entry.
Buyers just jumped ship, maybe just taking a rest.
BTU – I hope so, I just doubled down!
IRBT – so beaten up I’m not anxious to sell calls, maybe at about $20 if they have trouble there (or maybe I’ll be done by then).
GM – hope springs eternal but puts are getting expensive…
CCJ – the way they go up and down I wouldn’t want to jump in and out. There are 2 good exits but once you see them you’ll know there’s no rush (but you do want to catch them while you’re above $45). You can roll yourself to either 2x the Dec $45s at $4.15 or 2x the Jan $47.50s at $3.60 and roll your caller to 2X the Oct $45s at $2.30. That throws your caller out of the money, holds good coverage against your position with $1.80 in premium and gives you less downside delta compared to your caller. Of the 2, I would stick to the Jans but that depends on your margin availability.
MU – I just had mine called away from me, I’ve been very unhappy with the past month.
YRCW rising from the dead, that will be interesting if they take off. Check out MS though, BSC failing too.
GM $32.50 puts at $1.20, should be good for $1.80 if they can’t resolve it by 4. XXX
CAL – when in doubt, sell half but unless the energy sector comes down a lot, I think that would mean oil holds up and CAL keeps falling, the run-up was insane with $80 oil – it’s 1/3 of their costs or, it was 1/3 of their cost at $60 to at $80 it should be up to 42% of their costs – I would think that’s a negative for the airlines. My problem with these calls is it’s so obvious to me that I enter too early…
SYX – we’ll see if they hold $20.25 for a DD, not sure I want to see $20! $1 was the low value of the contract so I think it may hold.
Stopping out of winners here, Oil stocks heading back down, lots of stuff falling including retail and solar plays.
SYX – no I missed it, that was a huge volume shake, I’m wondering… Check out the mad option volume on this sleepy little stock. Probably because so many bought on my pick (I mean, who the hell else mentioned them this year) and today’s action may just be an effort to shake out the callers. I’m takiing this as a gift and rolling to the Dec $20s if I can get the roll for $1 as I can sell the Oct $20s for .68. XXX
Don’t forget there’s still a lot of EOQ BS going on this week, it would be very strange if they allowed the markets to take a major tumble until after Friday, so all the funds can report a good Q.
WYNN, I’m short them simply because a 50% run from earnings is probably not justified. Got caught with my pants down on this one though! Have to give up here, maybe one day it will come down but not today.
LVS is also a wait and see. Both of these are likely to get a specacular drop at some point. I’m moving my LVS puts to a spread of the Jan / Oct $125s for a $7 spread in the $25KP (5 units). XXX
LVS yes only it was $135s!!!! XXX So that’s Jan $135s at $12.77 sold Oct $135s for $6.09. XXX
FXI – I have the $170 puts (roll, roll, roll) – I was going to sell against them but not on a down Dow day, they are so overdue for a pullback… The $166 puts sell for $6.20 and can be rolled in $1 incriments so I really like these but I’m going to give into temptation and gamble on a pullback since my $14.50 puts were $23 last Wednesday.
