Friday I set up a credit call spread in MO. Yes, for those of you that have been following me - I'm going there again! BUT, this time it's a bit different. Thursday's big ole red candle is telling me we're ready for a pullback. Plus, the ex-dividend date was on Thursday, yet another reason for the selling pressure to continue. Specifically I'm in the June (expiring this Friday) 41.50/42 call spread. I collected .17 of premium on 10 contracts, so a $150 net credit after commissions.
Now looking ahead to the rest of the week...
My SPY June 189/190 credit call spread is in rough shape. Unfortunately I wasn't disciplined in this trade. Looking back I should have closed this sucker the day the SPY closed above 190, but I didn't. So here I sit 5 days away from expiration staring at a max loss of $540, and I've only got two ways to avoid that loss. 1) The SPY tanks this week... which it's possible we get some sort of a pullback. Or 2) I watch the intraday charts extremely close and look for a place to buy back in my short call on a dip and then ride a bounce back up and sell my long calls. That way I minimize my loss. However, that method is a bit more risky.
On to TGT and TWTR...
My TGT play is quite profitable. Specifically, I'm in a 52.50/50 July credit put spread. I'm looking to exit this trade on a sustained move over $58.
And TWTR... Last week I rolled OUT & DOWN my June $47 naked put into a September $44 put. As a result, I won't need to worry about this position unless we get a big run up in the stock, or we get closer to September.
As far as new option plays I'm looking at... If we get any kind of a market pullback I'll start looking at SPY PUT spreads, buy the dip has been working great and this mess in Iraq may just provide a great opportunity. KO & PG are getting interesting again. I'd really like 'em both if KO would drop closer to $39 and PG down to $77.50. Other than that I need to spend some time looking for new stocks and set-ups. I'm feeling a bit stuck and stale in my ideas lately.
If any of you out there have some thoughts, I'd love to hear them. You can email me at email@example.com.