Saturday, May 23, 2015


The stock market has a relatively quiet pre-holiday week. As I often do for Memorial day, here is a link to Trace Adkins song "Arlington" (link). Take a moment to remember the sacrifices others have made for this country.

My trading week was punctuated by a loss in LOCO, new positions in CRM MCK YUM and more activity in SKX. Overall, it was a go no where week for me. 
Here are the trades:
(p = puts, c = calls, sell means sell-to-open, all are third week expiration)

Fri Sell BRKB Jul 135 p @144.9. I add to longs by opening a July position in Berkshire Hathaway.

Sell DE Jul 85 p @92.9 Add to longs in John Deere as it moves higher on earnings.

Thu Sell CRM Jun 65 p @73.6 New long position in Chart support at 66.

Wed Sell SKX Jun 110 c @103.6. I rebalance my position in Sketchers. So far my timing has been poor.
Cover (buy to close) LOCO Jun 23 p @22.2 El Pollo Loco continues to knife lower. I cover this leg for a 400% loss, basis the premium collected. A minute later I close one layer of sold calls.

Cover (buy to close) LOCO Jun 25 c @22.1. This leg goes out at a 43% gain. I am doing this to avoid the possibility of a double smack down, losing on both sides of a sold strangle, if the stock bounces quickly.

Sell YUM strangles: Jul 82.5 p / 110 c @95.4
I skew bullish selling July strangles on Yum Brands. YUM has had a good run up after their earnings. Selling strangles is a bet on a trading range, that the stock stays in between the two strikes of 82.5 and 110.

Sell SKX Jun 100 p @107.6 90 Rebalance the strangles I sold yesterday in Sketchers as it continues its run to the upside.

Tue Sell JPM Jul 60 p @67.0 Add to longs in JP Morgan Chase bank. Banks look to be a good group as interest rates are climbing.

Sell MCK strangles @243.0: Jul 230 p / 260 c
New position in McKesson. Selling strangles is a bet on a trading range. Breakout chart base at 230. I skew bullish for a new net long position.

Sell IWM Jul 112 p @124.9 Rebalance my position in the Russell 2000 by opening a July position.

Sell LOCO Jun 25 c @23.2 Rebalance short strangles in El Pollo Loco as it moves lower. I want to give it a bit more rope instead of covering my sold puts for a big loss, so I am reducing delta by selling another layer of calls.

Sell SKX strangles @105.8: Jun 95 p / 115 c
Sketchers higher on analyst comments. This new trade skews bearish.

Position Summary:
net neutral ACT DATA SKX
net short FXI / short LOCO

* long means I sold puts, net long means I sold both puts and calls skewing bullish, net short same thing skewing bearish, short means I sold calls.

No comments: