Tuesday, June 19, 2012

update to the $EOG Paper Trade

20july - impressive rebound.. now 15bucks off the lows and blasting right thru the short covered calls.. so on friday opex day i rolled the short 92.50 call to the Aug 95 call for about .10 debit.. earnings are coming up but no way to avoid that.. short calls are ITM a bit but thats ok since there is some time premium in them too.. stock essentially moves lockstep with oil. couldnt tell you which way its going but with the ITM short calls im positioned for some decent downside protection if stock pulls back either on oil drop or earnings.. start the grind of making back the losses.. good example of how to manage getting whipsawed down and up in same opex cycle. in hindsight it would have worked out perfectly if i stayed put in the short 100calls but rolling down a short call is a good way to bring in a bit more premium if stock is not expected to rebound that quick. see the trade in a google docs spreadsheet


27 jun - going to sell another upside short call to start working on getting some money back..long oil will be a good trade one day but not yet.
Sell the July2012 92.50 short calls x4 for .90 each = $360 credit

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21 jun - EOG getting crushed today, might have been early on this entry, but thats gonna happen. so with stock down $5+ i will take profits on the July short calls. will not make a move just yet on anything new, could move up $5 just as easy tomorrow

Sell the July2012 100calls x4 for $2.00 each=$800credit
Buy to close today at .40 for $640 profit on this short call

this trade and other in the Paper Trade Portfolio in google docs spreadsheet


19jun - adding some energy exposure to the paper trade portfolio since everyone is on one side of the boat on oil. assuming you have $10k to commit to this segment of your portfolio:

Buy the Jan2014 85 calls x 4 for $24.00 each=$9600
Sell the July2012 100calls x4 for $2.00 each=$800credit

standard long term diagonal spread again. this trade and others in a google docs spreadsheet .. see what i did there.. with stock at 96ish you could only buy 100shares, but if you buy ITM Leaps you can buy four...and sell four short calls for $800 in monthly income. check back at july opex

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