Sold 100 shs of ArvinMeritor (ARM) at $15.65
started strong at 15.80ish but continues to fade since this morning.
doesnt look too good and we decided to take a tiny profit
P&L + 65
Bought 15×100 Microsoft (Nasdaq:MSFT) July10 / May 10 $30 Calendar Put Spread @ $0.38
MSFT announced their earnings today and their numbers beating the street by 3 cents at $0.45.
The front month puts looks a bit more expensive than the ones July,
Front month $30 put's vol went up slightly at 9bp to 28.34%, while the july $30 put went up 16bp to 23.98%
we decided to take this opportunity to sell the front month May put and buy the July put.
Trade Breakdown:
Sold 15×100 May10 $30 Put @ $0.44
Bought 15×100 July10 $30 Put @ $0.82
we will have an opportunity to roll the May put if the may/june roll is good
Bought 2×100 Gap Inc (GPS) May $25/$27 Risk Reversal for net debit 50 cents
Bought the risk reserval to ride on the upside while limiting loss to the downside
Sold the May $27 Call at 25 cents
Bought the May $25 Put at 75 cents
now longing 250 shs, 2×100 $25/$27 Risky
Rolled Marvell Technology May10 $19/22.5 Risk Reserval to $21/24
MRVL broke out and is currently up 6.7% on postive earnings from Intel.
we want to continue to ride on this as our Net Long position is already +$500.
by rolling our Risk Reversal into higher strikes, the worst case scenario for our position by May is approx -$160 (the realized loss of our $19/22.5 is $207, and the cost of our $21/24 is $190, but since we bought our 200 shs of MRVL at 19.75, at $22, that would generate a profit of $250)
Net cost of $0.95
Breakdown:
Sold May $19 Put @ $0.15
Bought May $21 Put @ $0.55
Covered May $22.5 Call @ $0.90
Sold May $24 Call @ $0.35
Covered another 100 shs of Yahoo! at 18.16 – increasing the total delta to ride on the pre-earning run
Remaining position after covering some delta
Long 5 July $16 Call
Short 10 July $20 Call
Short 80 shs
P&L for those 100 shs -$229
Bought 100 shs of ArvinMeritor (ARM) at $15.00
broke out after Goldman upgrading it CL-Buy ..
riding on the breakout and see if i can maintain above $15
Sold 5×100 Yahoo! (Nasdaq:YHOO) July10 $16 Call @ $1.96, covered delta for 50 shares at $17.60
Yahoo! is announcing its earnings next week.
we decided to play safe while enjoying the pre-earning run by selling half of our holding in the July $16 call at $1.96 , and covering 50 shares at $17.60
Realized P&L for the call +$545 , for the delta cross -$88
Current Position
Long 5 July $16 Call
Short 10 July $20 Call
Short 180 shs
Covered 3×100 Gap Inc (GPS) June10 $21 Call @ $3.80
looking bullish …
now we are net long 190 shs
looking to add more shs on dips
P&L on the remaining options $-900
Covered 2×100 Gap Inc (GPS) April10 $24 Call at $1.00
better than expected Same Store Sale numbers … stock up 5% …
covered the April $24 call at $1.00
P&L - $ 120
Sold 10 x 100 AMAT April10 $14 Call at 9 cents
should have sold it right on the analyst day when the stock moved + 2% and option price moved 6%
bad for being lazy …
sold it now at 9 cents as we kind of doubt the stock can move up to $14.12 on expiry.
P&L – $30
