DIS – an update after earnings announcement

So, last night at the close DIS reported earnings.  Initially AH the stock was up but as of right now, DIS is trading down 2.75% at $34.32 As you can see from my previous post (Click here) I was looking for a big move up or down to profit from this trade.  We didn’t get… Continue Reading

An update on MCK earnings trade – trade management, exit strategy.

As I last posted (click here) on MCK the day after reporting when I closed three 3:2 spreads for $1.00 debit after initially getting a credit of $2.37 when putting them on. I said that I was in no rush to take off the remaining spreads as they had become positive theta when the underlying… Continue Reading

DIS – how I pick and setup an earnings trade

Yesterday, just before the close, I put on a trade in DIS.  They are set to report earnings today after market close. I put on a ratio diagonal spread.  I am going to walk you through my thought logic in picking this trade. My first stop is the Live Vol Pro (www.livevol.com) software Calendar tab.… Continue Reading

MCK update – the day after reporting

Friday morning MCK announced earnings that drove the stock way down.  I was in surgery at the market open so I was not in front of my screens.  When I finished my surgery around 10am EST I noticed that MCK was down but trending up.  I put in an order to sell three 3/2 spreads… Continue Reading

MCK earnings trade, a quick update

(Click here to see the prior post with the Earnings trade or just scroll down) So, MCK had a pretty volatile day.  It was up pretty big in the AM which allowed me an excellent entry point.  Originally, last night when I found this trade the credit for the spread was $2.37.  With the AM… Continue Reading

An earnings trade MCK

I’d like to present an earnings trade today.  I’ve been so busy with my regular job as a Podiatrist that I have not had time to write (or trade).  I found MCK in the LiveVol Pro software (www.livevol.com).  LiveVol has a nice calendar of earnings and dividends.  One click on the symbol brings the underlying… Continue Reading

PCP – how I adjust a long stock position

There’s many articles written on how to “repair a broken stock” out there.  Click here for a good recent example from The Motley Fool.  They instruct you to buy one ITM call (one for each 100 shares you’re long), and sell 2 OTM calls.  The only problem with this strategy is that it still leaves… Continue Reading

An update on V and ASML trades:

Sorry for my absence lately. After Jul expiration I wanted to update you on two trades, V (Visa) and ASML.  V update:  This trade turned out to be a good example of my management and trade adjustments that I regularly do, and ended with a little good old fashioned luck… As you know, this trade… Continue Reading

A long Vega trade in OEX

It’s rare that I am completely or mostly ‘out of the market’ but this is one of those times.  I tend to travel a lot in the summer and when the market cooperates I like to take profits and leave the city with small to no positions on to worry about.  On vacation I like… Continue Reading

ASML – an interesting observation:

Today, ASML is up 1.37% as I write. Even though the underlying is up a lot, my long Jul $32.50 and $35 calls are actually down. This is because we are very close to expiration and theta and vega are working against them.   Remember, as the market goes up longs sell their put protection causing… Continue Reading