I've got an important week ahead on a few names in my portfolio. Let's start out with my high-risk plays!
I'm in on 100 shares of DDD @ 53.97. The earnings report is Tuesday before the bell. I really have no idea where this thing is heading. Right now, there is a rotation going on with people leaving the momentum names and moving into stocks like KO and MO! (More on that in a second). So DDD could report a GREAT number and still get SMOKED! Either way I'm committed to this trade and don't mind holding through some potential short term pain.
Another big earnings report on Tuesday I'll be watching is TWTR. I'm in a June $47 naked put, and underwater pretty bad - $315! But it's only April, well almost May - so need to really make any moves at this time. I collected a $465 premium when I set this play up, and IF I were to get assigned, that's OK. My cost average would be $42.35 and I'm fine with that. By the way let me share a BIG lesson I've learned over the years - DO NOT SELL PUTS ON STOCKS YOU DON'T WANT TO OWN!!!!
OK, so moving on... As far as the aforementioned rotation, I've sure got myself in a nice little loser, MO! I love it in my Roth IRA, but hate it in my trading account. As I mentioned in my last post, and as you can see in my portfolio - I've got the May 39/38 credit call spread on. Luckily I only played 5 contracts, but I'm down $150 thanks to this rotation out of momo stocks and into safety plays! This trade will expire in three weeks, but I'm looking to close it out this week. Once I get a nice pull back in the stock I'm cutting my loses and moving on.
Now believe it or not I actually have some positions I DO like! I'm in two SPY plays, a May and June credit call spread. If we continue to pull back in the SPY this week I'll close out my May trade for a nice gain. As far as my June SPY call spread, I'm hanging on to it for a bit. I sold the 189 call and bought the 190 - collecting a $500 premium on 10 contracts. This is my heavy bet that the SPY is heading back down to it's early April lows. If we get a move down to 182, or a bit under then I'd close out this trade.
It's going to be an interesting week! I can't believe a new month is upon us - lets see if investors really do sell in May and go away!