$FFIV chart and setup

can that 50 day moving average get any more flat..still working within a channel for last few weeks. 50day is holding as support for the moment but the levels id like to enter for credit put spreads , the premium is less than id like. now would really need a further pullback to bottom of this channel near 90 before entering new spreads. its down 5% today on a down less than 1% market day.. sells off to low 90's might be able to get a spread at/below the Oct lows near 70ish...will also look at OCT when pricing those out.. setting alert at 92 to get on radar.

click-->Follow @Mark_Lexus to follow on twitter

$VMW chart and setup

been watching VMW along time. right now its fighting with the 50day moving average, its off about 10bucks in last week or so while general market has been sideways. VMW has always been a tough one to get decent premium on credit put spreads but then again it has $2.50 wide strikes. might get an opportunity for an entry if it continues to pullback and/or the Sep/oct market correction comes. not comfortable taking a position here but if it were to pullback closer to the fat crayon support line near 80 i will price something out, either credit put spreads or possibly cash secured puts / risk reversals. setting alert at 82 to get on radar.

click-->Follow @Mark_Lexus to follow on twitter

those $AAPL diagonals

right now you are thinking AAPL is never going down again.. all those positive catalysts coming up..the stock has been up 100points in a month or so.. my Jan2014/Sep 600 and 610 short calls are way in the money. heres my thought process. Sep is historically the worst month of the year per cnbc, everyone on one side of the boat again on AAPL also. the deltas of the short calls are right about 90 right now so i still will get a little bit of time decay for rest of SEP. Stock has the ability to sell off like it did in april /may, could do so again either on product announcement disappointment, general market selloff, EU issues..anything. but instead of closing this spread now or rolling to Oct now, im going to keep it on, the short calls will provide me a huge hedge to the downside for the rest of Sep opex.. i anticipate having to roll up to Oct in a few weeks, would like to gain at least 10points in the roll, maybe 15. might have to pay a bit to do so. but these new strike levels will give me good levels to shoot against for new credit put spreads when the time comes. also these new higher strikes will also have added time decay in them as well..the best time to roll forward to get the math working for you is if you can wait for a good size down day..might even get a 20point roll to higher strike for flat or slight credit, if that happens and i can roll for 20points higher i will do so early. rolling on a up day especially a gap up day is not the best time to do it.

   so no real downside to holding the diagonals longer, but get that huge downside hedge, still some chumpchange time decay.. as we all know, stocks go up , stocks go down.. alot can happen till Jan2014 opex for the Leaps

click-->Follow @Mark_Lexus to follow on twitter