Comment by Phil

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Phil
November 15th, 2013 at 11:48 am

STP – Adjustments Only:  

• AAPL – Well, we're protecting our $35 spread, which is net $23 at the moment with a short call we sold for $15 so no worries here.  Also, we certainly don't mind buying more long AAPL if it heads higher but don't forget, this short 10 is our only short against about 35 long AAPL contracts in our various portfolios.  So, all we want to do with the short Nov $510 calls ($15.50) is roll them along to the Dec $520 calls ($16.85) and we get PAID $1.35 ($1,350) to push our caller $10 higher.  Isn't this fun?  
• FAS – We have the short Nov $78 calls and, sadly, FAS jumped up to $80.75 so $2.75 there but we did sell them for $3.30 and, like our short AAPL calls, we can roll them higher and the Dec $80 calls are $3.90 so here we get paid $1,150 to roll our short callers higher.  Rawhide!  
• SQQQ – We have 40 at $1.20 with the SQQQ Dec $17 calls at .72 and, if we DD then it's $1.92/2 = .96 and the Delta on the $17s is .51 so, if SQQQ even twitches higher, we'll be able to buy back half for .95 or better so let's invest 20 x .72 = $1,440 and that will be our aggressive bearish play into the weekend.  

LOL – Art Cashin says the Senate did everything but buy Yellen a corsage!