Buy APC via selling Mar 72.5 puts, APC @85.7. A beautiful break out from a flat base on earnings news. I am tempted to swing for the fences and buy a vertical call spread, but my logical mind tells me two things. First, that I have a poor history when trading energy related stocks. Second, I remind myself to “stick to my knitting,” meaning stay with what tends to work for me, which is low risk, low reward, high percentage trades such as selling puts below chart support levels.
As an aside, turns out that Vegas was on the losing side of the spread on the Super Bowl. Someone else mentioned that they more than made up for that on all the prop bets, such as the coin toss, the length of the national anthem. More than half the action on the Superbowl tends to be on these side bets.
Long APC BRKB IWM SPY TBT
* long AAPL AMZN EEM
* short GDX
* Delta is near zero on these positions.