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Friday, March 29, 2024

Comment by Phil

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  1. Phil

    Income Portfolio – Not a full update but concentrating on moves that need to be made:  

    • TASR – No point to keeping Sept $7.50 put at .30 to make .10 per month.  Let's buy it back and see if we get a downturn we can sell Dec puts into (now .55).  
    • CZR – Big drop this month – great for a new entry (not today – maybe next week – goes for all)
    • RRD – Strong
    • FCX – CEO just bought more.  Good for new entry.  
    • CLF – Fine.  Good for new entry.  
    • HOV – Good for new entry.  
    • AA – Good for new entry. 
    • CSCO – Fine 
    • AGNC – Good for new entry.  
    • AAPL – Damn, we own that piece of crap?  Good for new entry.  
    • EWZ – Wow, what a drop!  
    • TSAL – Improving a bit.  
    • BRK.B – June $100 caller now $11.60, which is .40 less than we sold them for!  Those ran up a lot on us so let's just be happy to make .40 and see how that 50 dma holds up ($110) next week before selling again.  
    • DIA – Wow, that was stupid not buying those short Aug $149 puts back when we went bearish.  No one reminded me then and I forgot but, if we're naked short DIA in the STP, it's not likely we want to be long essentially the same position in the Income Portfolio.  No biggie, our Aug $147 puts are up $2.20 at $3.95 and the June $149 puts are down $1.13 at $2.  I'm bullish into the close so let's wait but, generally, I think I'm happy with the roll to the quarterly $148 puts at $2.05 as the .05 pays for the roll and we'll just see what happens over the weekend.  That's the official play by the day's end but no hurry as the Dow may rise 100 into the close and save us some money.  
    • PGH – Good for new entry.  
    • OIH – Fine. 
    • UNH – Fine
    • GLW – Fine
    • BRCM – Good for new entry.  
    • ABX – Arrrrgh!   OK, so we entered with a commitment to buy 1,500 at net $27 and now they are $16.  We can buy back the 2015 $33 calls for .75 so let's do that.  The $25 shot puts are now $10.50 and I think we'll wait for 2016s to come out to adjust those.  The $18 calls, on the other hand, are $2.90 and the $13 calls are $4.90 so let's do that roll for $2 and then we'll go join Jabob in a rubber room if this goes any lower!  
    • GTAT – Fine
    • NLY – Yuch but I love those 2015 $15 calls for .41 as a new entry.  It's only 50 so we should DD for $2,050 and drop our basis to .88 as they've recovered off this level back to $15-16 3 times in 3 years and we have 1.5 to go.  
    • CMI – I almost feel like we should pull this but I just can't say I wouldn't want to own 500 of these shares at net $80 ($40,000) and that's what our commitment is on this $111 stock.  I'm almost positive the stock will go lower, maybe to $100, and that will drive the short puts to maybe $14 and we'll be 40% down but it's still $20 over our break even and 10% over our win so I would rather ride that out than risk getting out here and NOT being able to sell it again if the stock takes off.  
    • WIN – Good as a new entry.  
    • X – Kind of the same as CLF.  Good as a new entry.  
    • MT – Did we really buy a European steel maker?   Good as a new entry and let's take advantage of the high VIX to sell 10 of the 2015 $10 calls for $3 and 5 of the $10 puts for $1.60 to pick up $3,800 in cash and drop our basis to net $8.12 on the 1,000 we already own
    • CAT – Same worry as CMI and same long-term bullishness.   
    • SHLD – Good as a new entry 
    • TZA – Same as DIA, we should have gone naked but, oh well.  June $39 calls dead, of course, as are June $36 short calls, which brings us to the Oct $30/37 bull call spread, which is now $4 in the money at net $2 so all good there.  The $30s are $6.30, which is near the $7 max we can get for them and we could flip to Jan $35/45 bull spread at $2 and pull $4.30 off the table and work with the short Oct $37s but let's see how the weekend goes before risking naked ultra-shorts…
    • GT – Another one that will likely drop but not low enough to worry us.  
    • BAC – Nailed it!  The short calls are expiring worthless for a .20 gain (per long) and the longs are actually higher than we bought them for ($1.17, up .05), so better than 20% profit on that simple spread in the first month.  The only margin is the $2 x 50 from the difference in strikes but it worked out to $11,200 for the longs plus $10,000 in margin (less the $2,000 we sold the calls for) to make $1,500 in a month.  We'll wait next week to decide what Julys to sell and it should be good for a new entry then.  
    • INTC – Nailed it again.  Looks like the short June $24 calls are .17 and up .50 each for a quick $750 while we wait for the spread to mature.  Let's close these out and see if we feel we need to sell something else next week
    • DBA – Was going good until yesterday.  Back to scratch on that one.  Good for a new entry
    • LULU – Good for a new entry. 

    This doesn't include new entries from this week but I think that's everything – let me know if I missed anything.  



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