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 Salesforce.com. 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.
long BRKB DE DIS EL JBLU JPM
net neutral ACT DATA SKX
net long CRM HON IWM MCK YUM
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.