There is saying in
Spanish, same crap, different day. This week was more of the same for
those with hedged positions. The bull marches forward, bears get
crushed. My trades include: a new long position in BBY, roll some
covered calls on ASH, buy VRX stock to cover short calls.
Lest, I sound whiny, it was a profitable week and month for me, so overall there are positives. However, during these straight up moves, I lag an all-in long strategy.
Fri Cover short FDX
Nov 175 calls @174.5. I cover mid-day, rather than waiting until the
last minute and a potential dance with the devil. FDX closed below
175, so I would have been better off holding. However, Federal
Express traded all over the place, with a high over 176.
Roll ASH short calls:
Cover short ASH Nov 110 calls, sell ASH Dec 115 calls @113.25. I
bought shares of Ashland to cover short calls because of the wide
spreads on the options. I was happy to let the stock get called, but
I could buy back the call for a decent price and sold December calls
at a higher strike. This adds risk and capital.
VRX and AMGN are going
to get called away tomorrow. I bought shares of both to cover short
call positions. Again, I bought shares because the spreads on the
options were so wide. In the case of Amgen, I tried limit orders
several times only to watch it climb ever higher. Ouch.
Thu Sell BBY Dec 34
puts @37.8. New long position in retailer Best Buy, which is up on earnings
news today.
Sell IWM Dec 105 puts
@116.1. Add a bit to longs in the Russell 2000 etf.
Tue Buy VRX shares to
cover short Nov 140 calls @141.58. I add a lot capital and take on a
lot more risk by buying shares of Valeant Pharma.
Position Summary:
long AMGN APC BBY BRKB
DIS FDX GLD HON
long JWN MMM NKE UNH
UNP VRX WHR YHOO
net long ASH IWM
net neutral SPY
short TLT
expired ILMN
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