Friday, July 12, 2013

Crunch--Rebalance BA (sell puts)

Sell BA Jul 104 puts @108.0
Boeing seems to be moving higher based on a Jim Cramer recommendation. I am short August calls and three layers of August puts. Earnings are on July 24, which is after July option expiration. The rally in Boeing makes my position neutral.

Elsewhere, my recent put sale on GDX isn't working out so far. So far the Yahoo column call is a decent one. As always, no indicator is 100%. However, I like to be on the positive side of the odds. In the option market, it means lower payouts, a higher percentage of winners, and in my case substantial risk if there is a big move against me.

/edit to add: I closed the BA Aug 104 puts for a monster loss. Another Boeing 787 had fire problems. Ouch. This is a big loser, worst of the year. Obviously, there was no way of knowing ahead when and if another incident might happen. Sometimes it is just bad luck.

Net long APC LGF SPY
Net neutral BA 

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