Stock market has a nice up week, and my goes along for the ride, though my gains are modest. Earnings demanded some of my attention. YUM JPM HON are some of my stocks that reported earnings. Some new trades include: new long position in EBAY, renewed long in FB, selling strangles on NFLX, and more strangles sold on AMBA, betting on a trading range.
I am assigned on some SKX Jul 120 calls. I bought two half-positions of SKX stock to meet the assignment. On HON I rolled out and up to avoid assignment. On JPM I covered the sold calls the day before expiration. I some other rebalancing trades. DIS did not get to the strike and readjust by doing an over write into August.
Here are the trades: (p = put, c = calls, sell means sell-to-open, all are third week expiration unless noted)
Fri Roll HON calls up and out @105.4:
Cover HON Jul 105 c / Sell Aug 110 c
Honeywell up on earnings news. I have a complicated position that includes half a position in shares. Rather than buy another half and look to assignment, I buy back the Jul 105 calls for a 5% profit, and roll up and out and sell some August 110 calls.
Sell DIS Aug 125 c @118.3 I sell another layer of calls on Disney. I have a ocmplicated position that includes half a unit of shares. I am over writing 2x units of August 125 calls, for a net long position.
Sell FB Aug 82.5 p @95.0 I open an August position in Facebook.
Thu Cover (buy to close) JPM Jul 70 c @69.7 JP Morgan Chase is uncomfortably close to my strike price, so I decide to close these for about a 35% profit (basis premium collected). I prefer not to dance with JPM on expiration Friday.
Sell NFLX strangles / Aug 95 p / Aug 125 c @109.0 gross
Netflix reacts well to earnings. I sell August strangles, which is a bet on a trading range. Later in the day I rebalance by selling Aug 97.14 p @114.2 NFLX up 5 full points from my initial position.
Sell EBAY Aug 60 p @65.7 New long position in Ebay, as it moves higher on earnings.
Wed Sell AMBA Aug strangles: Aug 85 p / 150 c @110.6 gross
Ambarella moving up again. I sell some August strangles with a slight bullish skew. Earnings are in September, so no earnings risk.
Sell BRKB Aug 135 p @141.6 I open an August position in Berkshire.
Sell SKX Aug 100 p @120.8 Rebalance again in Sketchers. Again, it's me buying high, selling low, making it up in volume (half kidding sarcasm here folks :). The intra day timing leaves much to be desired. Intermediate term, I've mostly been on the right side of SKX.
Tue Sell SKX Aug 135 c @118.8 Rebalance in Sketchers. Looks like I step in a pile of poo on Monday with my buy. I am doing damage control. Right now, it looks like Monday's spike high of 122 was short covering, taking out of stop loss orders and now gravity is taking effect. My position has become a complicated net long, with sold strangles, and owning shares. Despite my seemingly poor timing on entry's, as of now, SKX is one of my big winner trading stocks for 2015.
Mon Buy half position SKX @120.62 now have a full position in case of assignment against sold Jul 120 calls.
Buy half position DIS @108.04 to hedge against sold Jul 120 calls. Both DIS and SKX move lower after I get filled. Boo hiss.
Sell IWM JulW4 120 p @125.4 Rebalance in the Russell 2000 etf by selling a layer of weeklies.
Sell ULTA Aug 150 p @165.1 Add to longs in Ulta Beauty as the move up from a breakout continues.
Cover (buy to close) JPM Jul 69.5 c @67.8 With earnings due out before expiration, I take a 20% loss on this layer of sold calls.
long BRKB EBAY FB NKE ULTA WBA
net long DIS HON SKX UNH
net neutral AMBA IBB JPM MRK SKX SPY
net short IWM NFLX
expired DATA DE EL MRK YUM UNH