As almost always, my positions are small dollar amounts. I also had enough offsetting options expire worthless so the week was profitable. It is still painful to have a firecracker blown up in your hand, so to speak, though.
Here
are the trades:
* p = puts / c = calls, all are the monthly third week of expiration options.
* p = puts / c = calls, all are the monthly third week of expiration options.
Sat
Assignments on calls in ASH at 115 and WHR at 185. Ashland was a
nice, though small profit. Whirlpool a mind-numbing, shell-shocking
loss.
Fri
New long position in KMX, up on earnings.
Sell KMX Jan 60 p
Thu
Ouch! I get burned by the monster two-day rally. Selling short term calls is
playing with fire, and an entire finale rack went off in my face (a
finale rack is the big ending of a major fireworks show). The
percentage loss on the short WHR calls is about 2500%, on the UNP and
AMGN about 300%, in two or three days!!! Now don't get the wrong
impression, my trading account is up big during the past two days,
but would have been up even more had I not played with fire.
Buy
WHR shares @190.98 to cover short calls. I bite the bullet instead of trying to finesse for a better price. As it turns out I am on the bad side of the price curve, but with such a shell-shocking percentage loss (2500%), rational logic is difficult to discern.
Cover
short AMGN Dec 167.5 calls
Cover
short UNP Dec 118 calls
Sell
IWM Jan 108 puts
Wed Sell FDX Jan 180 c
Tue Sell WHR Dec 185 c
Mon
Sell IWM strangles:
Sell
IWM Feb 126 c
Sell
IWM Feb 92 p
Sell
AMGN Dec 167.5 c
Sell
JWN Jan 82.5 c
Sell
NKE Jan 105 c
Sell
UNP Dec 118 c
Position
Summary
long
ASH BRKB DIS HON ILMN KMX MMM MSFT UNH UNP VRX
net
long NKE SPY
net
neutral AMGN APC WHR YHOO
net
short BBY FDX IWM JWN
expired
GLD TLT
assignments
on ASH 115 calls, WHR 185 calls, both covered by stock purchases
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