The highlights for this week include a short strangle in Michael Kors KORS, a new long in Time Warner TWX in and a roll down for a loss in Monsanto MON. Trades follow:
Thu Cover short IWM Jul 112 puts @112.2. I cover these puts at a loss as the Russell 2000 moves lower on unsettling geopolitical news from Ukraine and Gaza.
Wed Sell TWX Aug 72.5 puts @84.2. New long position in Time Warner Cable. TWX up on a takeover bid from Fox. The strike price is the gap. Not much premium, but with option expiration coming on Friday, I will soon have a lot of free capital. Even if take over doesn't go, there will likely be some speculation premium for some time. Rarely do these events go that quickly.
Tue Sell APC Aug 95 puts @109.2. I rebalance my complex position in Anadarko Petroleum by adding another layer of short puts.
Sell KORS strangles I leg into the position selling the Aug 65 puts @80.5 and and the Aug 100 calls @80.1. New net long position in Michael Kors. KORS moving lower on analysts downgrades. The thinking is fewer Google searches on the name, and more discounting of the luxury merchandise. Why net long then? Because volatility is up, after two big down days. The strike prices of 65 and 100 are way out of the money.
Mon Roll down and out on MON. I cover short MON Jul 120 puts @119.8. I close my long position in Monsanto at a about a 100% loss basis the premium collected. Stock broke through the strike price. I am still bullish on MON so a minute later I sell some August 110 puts: Sell MON Aug 110 puts @119.9.
long AIG AMGN ASH CMI DAL DIS EPI EWG FDX HON
long JWN MON MSFT SLB TWX UNH VRX WAG XLU
net long APC DIS GLD IWM SPY
expiring EPI VRX WAG