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Options Strategies
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Re: Week 50 // Tuesday After the Close Update'Twas another blah market today, as the NAZ sold off 35 points. Investors are trying to get a handle on how the market is treating this quarter's earnings announcements. So far, it appears that companies beating expectations are rewarded slightly while companies missing expectations get hammered. Thus, investors are pulling back somewhat on stocks they view as overbought. This happened today to my biggest rolled position (AMZN), which fell 11 points to my short put strike of $2010 as it faced protesters in Europe and harsh interrogation in Congress for some of its practices. Even though AMZN stated that Monday was its biggest 1-day Prime Day revenue total, it's possible investors were selling the news. So I began to sell more call spreads today, including the unwinding of the 10-point spread of calls sold Monday as the MMs were kind enough to provide $2.50 strikes for this week.Note that the posted trade for this walk back had the direction of the trade incorrectly. I sold (6) AMZN Call 2030's and bought (6) AMZN Call 2022.50's, causing a debit to occur, not a credit. I will sell a final batch of 12 AMZN call spreads today (Wed). The only 2 positions affected by trades on Tuesday were 80 (AMZN) and 81 (BYND). RO80: Short (24) 26 Jul AMZN 2010/2007.50 put spreads RO80A: Sold (2) 19 Jul AMZN 2020/2030 call spreads for +4.15 (+8.30) RO80B: Sold (4) 19 Jul AMZN 2020/2030 call spreads for +3.50 (+14.00) RO80C: Closed (6) AMZN 2030 call spreads AND Bought (6) AMZN 2022.50 call spreads for -2.90 (-17.40) RO80D: Sold (6) AMZN 2030/2032.50 call spreads for +1.05 (+6.30) Closed at: $2009.90 Theses:(6) 2010 (26 Jul)-2020 (19 Jul); (6) 2010 (26 Jul)-2030 (19 Jul). Premium total: (+11.20). Comment: AMZN reports earnings week of 26 Jul. I'd rather not have such a large position going into that week, thus I'm trying to close the 26 Jul short put spreads this week using the 19 Jul short call spread premium received this week.. I have 12 call spreads available to sell. RO81: Short (3) BYND 165/167.50 call spreads RO81A: Sold (3) BYND 165/162.50 put spreads for +.85 (+2.55) Closed at $172.59. Thesis: 165-165. Premium total: +.85 (+2.55) Comment: Will push call strikes higher 'at the right moment' so as to EW all spreads. RO82: Short (3) BYND 165/162.50 put spreads Closed at $172.59 Thesis: > 165. Premium total: .00 Comment: Waiting for 'the right moment' to sell call spreads that will, for sure, EW. RO83: Short (1) BA 362.50/360 put spread RO83A: Sold BA 362.50/365 call spread for +1.01 Closed at $362.75. Thesis: 362.50-362.50. Premium total: +1.01 Comment: Stock under pressure due to rumors of further delays of getting the MAX plane back in the air. RO84: Short (3) CMG 752.50/750 put spreads RO84A: Sold (3) CMG 752.50/755 call spreads +1.20 (+3.60) Closed at $761.85. Thesis: 752.50-752.50. Premium total:+1.20 (+3.60) Comment: This one will be tough to close out without using more margin as the call strikes above 755 are multiples of $5, not $2.50.Thus pushing out call strikes will require a doubling of the margin requirements, which will be returned when the calls EW. RO85: Short (4) GOOGL 1145/1142.50 put spreads RO85A: Sold (2) GOOGL 1145/1150 call spreads for +2.14 (+4.28) Closed at $1153.46. Thesis: 1145-1145. Premium total:+2.14 (+4.28) Comment: Sold 2 call spreads of length $5 against the 4 put spreads of length $2.50. The margin used on both sides is the same ($10). RO86: Short (4) NFLX 375/372.50 put spreads RO86A: Sold (4) NFLX 375/377.50 call spreads for +1.20 (+4.80) Closed at $365.99. Thesis: 375-375. Premium total:+1.20 (+4.80) Comment: Earnings released after the bell on Wed. Could move 20 points...or just a few. Ideally the premium intake will allow for pushing one side OTM by Fri COB. RO87: Short (1) NVDA 167.50/165 put spread RO87A: Sold NVDA 167.50/170 call spread for +.99 Closed at $167.08. Thesis: 167.50-167.50. Premium total:+.99 Comment: Expecting little movement in the stock this week. RO88: Short (2) TSLA 240/237.50 put spreads Closed at $252.38. Thesis: > 240. Premium total:.00 Comment: TSLA may be slowing down here in the $250's. I will considering selling 2 call spreads today or Thu. ================================================================== Total premium received/spent = +11.20 +2.55 +.00 +1.01 +3.60 +4.28 +4.80 +.99 +.00 = 28.43. Ideally this will be enough to push whatever needs to be pushed. Note that closing the AMZN 2010/2007.50 put spreads for 26 Jul currently costs about $1.50. I would need 36 points to close those permanently. So here's the plan: Use the accrued premium to execute a desired calendar trade such as this one: Close (24) 26 Jul AMZN 2010/2007.50 put spreads AND Sell (24) 19 Jul AMZN 2000/1997.50 put spreads for -.85 (-20.40) We'll see how the stock responds on Wed to the end of the 2-day AMZN Prime Day sale. Cheers. |
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Msg # | Subject | Author | Recs | Date Posted |
3031 | Re: Week 50 // Wednesday's RO Trades (AMZN, BYND) | sandiegodude2000 | 0 | 7/17/2019 1:49:43 PM |