Jan 9 #Fuzzy Trades
This was a REALLY busy day. Let me start by saying these first 6 trading days of the year have been just amazing. Pinch-myself-amazing. So I’ve starting peeling some things off. Fuzzies that have upcoming earnings, or have had a lot of debit rolls and were yet again ITM just got yanked today.
1. Let me start with SPY….I no longer can account for where I am in the core debit reduction on my collective SPY trades. Hedges and unhedges are flying around my office like Chinese throwing stars. The best measurement I think is just nightly P/L updates on SPY until I’m flat.
SPY YTD: $4883.00
I still have 40 SPY Fuzzies that are hedged, and I may look to peel those off tomorrow and go flat, preparing for a reset.
2. CVX calls were down to about .20 extrinsic, time to roll. BTC Jan12 127 c 1.71, STO Jan 26 128c 1.77.
3. FAS (x20) same as above on extrinsic. BTC Jan 12 70c approx 2.40, STO Jan 26 72 c approx 1.87
4. DIA bought 15 unhedged fuzzies yesterday for trend trade, sold today for net $840
5. LMT facing another large debit roll and upcoming earnings, and protective puts increasingly farther away, closed 20 of these today for net profit of $5191.00. Anxious to reset with tighter puts in spread and distance—beautiful fuzzy!!
6. IWM same story as above, net profit is $2627.00
7. MU used the AS-BB osc to close a hedge for $1430.00 profit at osc low, then re-hedge. BTC Jan 26 47 c @ .54, STO jan 19 46 c @.47
8. RCL has had terrible technicals for weeks, used today’s strength to play against significant profit taking in other positions and remove this for loss. Net loss $1670.00.
9. EXAS Hedged 1/2 of my 20 fuzzies before their presentation this afternoon at the JPM medical conference STO Jan 19 55 calls @.75. The other half is still long term focused w/o hedging.
10. MNST so much for “Lazy River Fuzzies” BTC Jan 12 64 c for 1.34 STO jan 26 65 c for 1.32, got a buck for .02.
New Fuzzy: CRM Feb 110/110/105 for .32, sold Jan 19 110c for .74. Used Feb to avoid earnings. You read this right, the first-round hedge has already covered the cost of the core trade.
Really Fun Stuff:
COST Fuzzy Bear STO Feb 190call/BTO Feb 190p/BTO Feb 195c x 5 Unhedged 3.99 debit I put this on when underlying was trading close to 188 today, so there is nice profit. It’s very quickly approaching support, will need to play chicken with a hedge decision on this. Looked like squeeze would fire “bear” to me.
Sold $KMB Jul 20 100 put @ 1.25 with the stock at 116.80. Price hasn’t been at the strike since Oct 2014.
Rolled Jan. 19 45 put to Feb. 16 45 put for .84, originally sold Dec. 17
Added a hedge to SPY STO Jan 12 278 call .32
With the stock just breaching the strike I’m rolling the Jan 19 1250 covered call out 1 week and up 5 points to Jan 26 1255 call for 3.90 credit. The Jan 26 expiration is still pre-earnings.
Sold $XBI Feb 16 81/91 strangle @ 1.84. Leaning a little bearish, thinking the bounce won’t push XBI above its all time highs.