Friday, February 13, 2015

Weekly: all time highs, new: AAPL PANW

Another positive week for me. New positions are short strangles in AAPL and PANW. Stock market near all time highs.
Trades: * p = puts, c = calls, sell means sell-to-open, all are third week of expiration

Fri Sell PANW Mar 110 p @134.4. New long position (which I quickly change to a strangle) in Palo Alto Networks. This is a cyber-security play. PANW is a bit extended from its base. My puts are several support levels lower. A bit later I sell calls to make it a short strangle
Sell PANW Mar 165 c @133.0. PANW droops so I hedge my short puts by selling calls.
Sell IWM Mar 110 p @121.3. I rebalance short strangles on the Russell 2000 etf. Even with this move I am net short IWM.
Sell XOM Mar 85 p @93.1. I rebalance short stranges on Exxon Mobil. My position is net short even with the adjustment.

Cover several layers of SPY options: Cover SPY Feb 120 calls, Cover 2x SPY Feb 175 puts. I cover these for a buck or two to free up buying power. I often let these expire worthless, but want to have a bit of free buying power for flexibility.
Cover FDX Feb 150 puts @176, same deal, cover for a buck, to free up buying power

Thu Sell AAPL Mar 115 p @126.4. I rebalance short strangles again on Apple as it continues to rally.
Sell HON Feb 100 p @103.2. I rebalance short March strangles in Honeywell. I am short Mar 105 calls, so it nearing my mental stop.
Sell DIS Mar 95 p @103.4. I add to longs in Disney as it moves higher.

Cover short puts on Union Pacific Railroad and Exxon Mobil for $1 per contract, to free up some buying power. At ThinkorSwim covering short options that are five cents or less are commission free trades. (Sell to open is charged.)
Cover UNP Feb 90 p @123.
Cover XOM Feb 75 p @91.5.

Wed Sell AAPL Feb 117 p @123.4. I rebalance short strangles in Apple as it continues to rally.

Tue Sell AAPL strangles @120.9: 
Sell Mar 105 p and Mar 140 c
Apple moves to all time highs. My strangle is delta positive. A short strangle is a bet on a trading range.
Sell AMGN Mar 130 p @151.2. I open a March long position leg on Amgen. I am short February strangles.

Mon Sell ASH Apr 110 p @125.7. Add to longs in Ashland as it has run higher after earnings, breaking out from a base at 115. ASH options often have a wide spread, my order is a tick below the mid.

Cover (Buy to close) GLD Mar 145 c @119.0. I cover this layer of short gold calls for no commission to free up buying power. I am still short strangles on GLD. There are six weeks until expiration, only about a 2% chance for these to come into the money, but I may have better uses for that capital in the next six weeks.

Sell XOM Mar 82.5 p @91.8. I rebalance on Exxon Mobil yet again. Adding a layer of short puts to increase my delta.

Position Summary:
net long AAPL AMGN UNH
net short HON IWM SPY XOM

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