Thursday, June 14, 2012

update to the $JPM Paper Trade

23july - with JPM green on bad tape and stock at 34.11, im selling the Aug 36 calls for .35 to get the position back into a diagonal spread:
long the Jan2014 25calls
short the aug2012 36calls


20 July - stock closed down about 30cents since putting on this diagonal spread.. the July 36 calls will expire at max profit.. subtracting that amount from the cost basis brings this position to about a $90 paper loss after one month.. will look to sell an upside call soon to get back into a diagonal spread for Aug.. remember the thesis on diagonals.. that you have a long term bullish outlook, as in you want to hold this position for a while.. so diagonals bring in monthly income and allow for some upside appreciation along the way. this position in a google docs spreadsheet


14Jun - Assuming you have about $15000 to put to work, which is reasonable for a new trader. not going to regurgitate the fundamentals on JPM since its been getting huge amount of air time on cnbc. consensus seems to be negative on JPM and financials.. everyone on one side of the boat seems like. with stock at 34.10

Buy the Jan2014 25 calls x10
Sell the July2012 36 calls x10
total for about $10.30 per lot. so total $10300 for the 10lot

using the trademonster analyse tab, this diagonal spread is still profitable if stock rallys all the way up to 47 by july opex

click --> to follow on twitter

Paper trade portfolio in a google docs spreadsheet

No comments:

Post a Comment