So we have the big vote this weekend (in case you’ve had your head in the sand, it’s the Health Care vote – or whatever it is) and my big question is not if it passes or not (I do have an opinion), but how is the market going to react, if at all? As of this writing, there was a pull back today and the volume was heavy. Strangely enough on the DOW, it looks a lot like the bull run from 12/18 to 1/15 and almost at the same price levels. The prudent thing to do is wait until next week for confirmation.
I generally don’t like to give comments on the overall market or to make any sort of predictions. We all have our own opinions and there are plenty of people out there that are more than willing to talk about it. Besides, I just don’t have enough time – following what I have keeps me busy enough.
After the success from a little over a week ago, I wanted to make sure I didn’t jump back in real heavy and trade for the sake of trading. Let me tell you, I was tempted – I had $ signs in my eyes and ka-ching going off in my head. I managed to resist for the most part by telling myself I needed to preserve the capital and that it was too late for March plays and too early for April plays. But like I said, I did enter a few new trades.
New Trades
The day that I wrote my last post (3/10) I entered a APR 70/65 Bull Put on FCX. The premium was really nice on this spread and the price had just given a small bull flag.
The same day I entered a APR 120 Bear Call on FSLR. This stock has been a nice cash machine for me and I have realized on important thing – my spreads have been correct on FSLR but I just have to hang tight while it goes ITM and then back out again.
I had been waiting for the right time to make a play on GLD so I pulled the trigger on 3/11 with a Double Calendar at the 107/110 level. I have been doing a lot of these lately and very soon I will write a post and give my thoughts on these spreads.
On 3/12 I entered my weekly trade on OEX and I selected a double calendar at 520 Put and 530 Call. That one did not go so well this week so I closed all legs except the April 530 Call – which was ITM until today. I won’t do anything with it until I see what transpires next week.
Finally, on 3/16 I opened another Double Calendar on ISRG (featured in a previous post). This one is a bit unusual in that the back month is all the way out to July. There are two reasons: 1) there were no May or June options at the time and 2) earnings are scheduled for 4/15 – or the day before APR expiration. If the price doesn’t move too much prior to earnings, then I can buy back my short APR Puts and Calls for a pittance and hang on to the long JUL options, which should not have too much decay by the end of next month. Stay tuned.
Adjustments and Closures
On 3/11 I closed the Reverse Iron Condor (or Iron Butterfly) on JOYG for a nice profit.
I closed the Call Calendar on GS for a VERY nice profit. I did the same on GS as other Calendars and Double Calendars by keeping the long option (after closing the rest of the legs on 3/5) in the direction that the stock was moving. Hanging on to the APR 160 Call until 3/11 is the only thing that made this trade profitable.
Lastly, also on the same day I closed my weekly OEX for $80.
I also closed the Bull Put on MA on 3/12 early for a profit – nearly 100% of the credit I collected. I really like the ability to close short options for free when they are at 5¢ or below – that way I get it off my radar screen.
The Iron Condor on DIA was moving against me so I closed all legs on 3/11 except for the long 109 Call that I held on to until 3/17 when I sold it. I did make a whopping $12 on that one.
Conservative Account Brief
Remember the Calendar Spread I put on for AT&T (T)? I closed the short MAR leg on 3/17 and I will hang on to the long APR Call – especially since they are ITM and giving me a profit right now. It’s tempting to write Calls against it now, but there is not enough premium in the APR Call and the MAY Calls haven’t been listed yet. I am also waiting for them to declare their next quarter’s dividend, which should be any day now.
You can get all the details on my In Play and Closed 2010 pages – see the tabs at the top of the page.
◄ Jeff ►
