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.
Position
summary:
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
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