in case you missed it, here is the quick summary of the fiscal cliff negotiations. republicans on the left, democrats on the right.. thats you in the middle
Thursday, November 22, 2012
stock held the 200 day like a champ, about that time i sold the 170/175 credit put spreads, stock now comfortably higher. as it moved higher i condored the position with the 220/225 credit call spreads.. if putting those on today i would keep the strikes above the all time higher but at the time i was wanting to stay above the 50day moving average..if the stock continues to rally , especially crossing the 50day, i will consider taking profits in the credit put spreads and rolling them up to higher strikes for some added premium, but still staying at/below the 200day.
Posted by Mark_Lexus at 1:49 PM
in hindsight it looks like the support level from a few months ago held on a closing basis.. .the level everyone was looking at. had that big up day after tagging that support line and i sold some 600/605 DEC call credit spreads. didnt get in near the high of the day, would have been some juicy premium if i would have hit that but not much time to get away to drive to a hotspot since the trademonster iphone app is dogshit. regardless, i picked the 600 level to be above the 200day moving average which is rising slightly.. at time of entry the probability of max profit was 85% i believe.. my hedge is my 2014 and 2015 Leaps.. so even if the stock continues to rally up to 605 its ok..will still be a net gain plus will be a good sentiment shift going forward.. if stock pulls back some i will possibly look to add credit put spreads to condor this position.. will keep strikes definately below the 520ish support line but likely below the low of the day from few days ago..506 i think it was.
Posted by Mark_Lexus at 1:36 PM