Comment by phil

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phil
October 2nd, 2015 at 1:20 pm

You're welcome Eddie. 

Good attitude, Malsg.  

SUNE/Albo – Too iffy for me.  

IRBT/Jeddah – I think $27.50 is a good floor for them but now 2018s yet.  I'd sell the 2017 $28 puts for $4.70 and buy the $23 ($8.75)/$33 ($3.40) bull call spread for $5.25 for net 0.55 on the $10 spread that's $5.75 in the money to start.  Figure when 2018 comes out, you can roll the short puts to the 2018 $20s (if you feel the need) so huge discount on the commitment (net $20.55 if goes as planned) and massive upside on a small move higher and still a big profit if flat.

    Hey, I just realized we don't have them in the LTP, just the OOP – so let's add 20 of these spreads!  



SDS/Scott – Well they are just getting back to our shorting line (1,924) so a good time to go for the Nov $22 ($1.80)/$25 (0.85) bull call spreads for 0.95.  They pay 3:1 but don't forget the point is to roll the $22s down to the Jan $20s (now $3.70) before the $22s fall below the net of the spread ($1).  The Delta on the Nov $22s is 0.65 so $1.50 move on SDS triggers your roll and the Delta on the Jan $20s is 0.78, so they'd be down to about $2.50 so the roll would be about $1.50 and you'd be in the Jan $20/Nov $25 bull call spread for net $2.50(ish) and then you reduce that when the Novembers expire and you sell some Jan calls (the $25s are currently $1.70).

26 more rigs go offline.  Now we're down about 2/3 from last year.  

WYNN/Albo – Saved by the China casino news (which I mentioned in post above and meant to play but forgot):



Even CZR moving up:



Caesars' new CEO shocked with lack of casino innovation

RJET/Mkucs – Same as I thought last time:

Submitted on 2015/09/28 at 3:38 pm

RJET/Mkcus – Yes, it's too greedy!  We just played for $4 – not greedy at all.  I don't think $8 is out of the question but think how many $2.50/4 spreads you could have bought instead at 0.45 each instead of the stock.



AAPL/Silver – I don't like selling calls against them under $120 but 1/3 sale not too crazy.  Just be sensible with stops in case they do pop.