Friday, June 1, 2012

update to the $MA paper trade

3 aug - almost an up 30SPY day and mastercard hardly participated being up only a dollar or so.. so seeing that i went ahead and sold the Aug430 short call for $500 with the stock near 424.. Visa had a good day so im assuming mastercard will stay flat or slightly up for rest of opex if it can not move up large on such a strong tape. brings position back to a diagonal spread
Long 2014 340 call
short aug 430 call
position in a google docs spreadsheet


1Aug - as tweeted before the close, i bought back the short call for .40 today, netting another $4.90 to be subtracted off the cost basis of the Leap.. with next weeks options coming on the boards tomorrow, will look at either a ratio spread or selling an upside call again. stock ended up down only about 7bucks from before earnings.

31 july - with earnings tomorrow i will take advantage of the slightly elevated IV for the weekly options by selling an upside short call. IV was in the upper 50's when i looked at it, not crazy high like a Facebook type stock but seems about in line with previous quarters, Visa reported good numbers last week. with stock at 436ish and as tweeted, sold the weekly 445 call for $5.30. gets the position back to a diagonal spread:
long Jan2014 340 call
short aug3,2012 445 call

if stock takes off, will roll the short call but will wait till thursday to see what next weeks options look like, if it sells off will close the short call close to max profit and re-evaluate for new trade

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20 july - the 420/430 ratio spread was dancing around max profit for a while there but closed a bit lower on friday.. closed it at about $4.00 to get a decent profit on a .75 entry.. did not enter new short call or ratio.. just holding the long Jan2014 leap for the moment. MA position profitable by about $2300 so far, here is the trade in a google docs spreadsheet


11july - with stock dropping to under 420 today, im buying back the july short call for 1.15 and putting on a July ratio spread for the remainder of this opex, positioning me for a rebound till opex.made a nice $900 on the short call.
Buy to close the July2012 440short call at $1.15
Buy to open July2012 420/430 call ratio spread for .75 (buy one 420, sell two 430's)

5july - rolled the weekly short call from 435 to the july monthly 440 for a credit of 80cents. Sell to open July2012 440 short call at 10.30

2july - stock was up 4-5bucks in the morning to near 435... so i:
Sell to open July6 weekly 435 short call at $4.10

position is now back to a diagonal spread, here is the Paper Trade Portfolio in a google docs spreadsheet

30 jun - you see that nonsense friday..stock at 427 with 15min to go and then moves right to 430 in last few min..closed at 430.11..just enough to get all those weekly 430short calls exercised on you. when i saw that happening i closed out the weekly 430short call at .10, got a nice $400 profit on that weekly short call. will look to resell a short call on monday if possible. so as of this second the "position" is just the long 2014 call.. this position is up a nice $3200 off of $11000 investment in 2months.. good timing for me. benefitting from decent stock rise and a couple short calls decaying to almost zero.

22jun - lucky timing for me, had down move yesterday..closed short calls, now decent $5+ morning today so im reentering a short call to go with the existing 2014 Leap to get back into a diagonal spread, heres the trading in a google docs spreadsheet

Sell to open Jun29 weekly 430 short call at $4.10


21 jun - closed out the weekly short call i had on with todays down move. Had the Jun22 weekly 430 short call at $4.60, bought back today at .50 for a profit of $410 on the short call. subtract that from the cost basis of the Leap, stock was down from about this time last week and the short call profit absorbed alot of it, "position" still profitable by $2200+ . this position in the Google Docs Portfolio . holding off on new short call / ratio for the moment


15 jun - with 10 min to go on friday i closed the June400/415 ratio spread for $420. stock overshot the 415 area by a bit but ratio was profitable up to 430... an ok problem to have since the LEAP has appreciated nicely since entering the trade. Ratio profited by $275, so subtract that from the cost basis of the LEAP and this "position" is profitable by about $2475 in one month on about a $10500 investment. here it is in the google docs spreadsheet . after closing the ratio i did the following trade with stock at 426ish as well:

Sell the June22 weekly short 430strike call at $4.60

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1june - making an entry with mastercard today on big down day, hence my post it note on monitor "wait for big down day before buying LEAPs".. making this trade for the PaperTrade Portfolio :

Buy the Jan2014 340 call at about $104 ($10400)
Buy the Jun400/415 1x2 call Ratio spread for about $1.50 ($150).. that is buy a 400, sell two 415's..going to have to pay a bit for this ratio since opex is 2weeks away

Using June as a ratio to position for a rebound on todays big down day. will reevaluate after opex for July. like the others..just the ratio profits from about 400-430, with max profit at 415 pin at opex.

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