Thursday, June 27, 2013

Sell APC strangles and Buy BRKB

Buy BRKB via selling Aug 95 puts @113.2

I sell strangles on APC selling Aug 72.5 puts and 
Aug 110 calls @86.5.

The Berkshire Hathaway is another worm trade, very low premium, low risk, low reward. I continue to be cautious. I don't trust this rally. Liquidity remains scarce on some options, with wider spreads than I would like.

The spread narrows a bit for the moment on Anadarko Petroleum and I reach to sell the strangle. A short strangle is a bet on a trading range. 

I don't care that much for these two trades either. However, I am slowing deploying some of the capital from last Fridays option expiration.

Long BA BRKB IWM LGF NSC PG XOP XRT
Net long APC SPY

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