I set up 3 new trades this morning.
First, AFL... I played the August 62.50/60 credit put spread. I collected a $510 credit on 10 contracts. The max loss is a bit higher than I'd like, BUT this is one of those slow-moving large cap stocks. Plus there is excellent support at the $60 range. Also looking at the 6-month chart, the stock has been making higher lows as it continues to test that area of resistance at $63.50. I believe we will get a close ABOVE that range very soon, potentially today depending on how the market holds up. So even though my max loss on this play is $1,970, I've got the chart, the technical indicators and probability on my side.
Next up the QQQ's... I set up a very aggressive bear call spread this morning. I played an in the money August 95/96 credit call spread, collecting a $500 credit on 10 contracts. I get it people, I'm calling tops and gambling - and that's kind of true. Plus I know next week we've got more earnings including the likes of FB and AAPL. So yes, this is an aggressive play, BUT I'm playing it to August. And since my exit strategy is simply to roll it out if the spread is in the money come August OPEX, I feel comfortable enough to let this thing run against me all it wants. Because people, I believe we will get SOME sort of August, late summer swoon! Again, if I'm wrong - I'll simply roll out the position to September. If I'm still wrong in September, I'll roll it out to October. EVENTUALLY - I'll be right! You feel me?!!? HA!
And lastly KO... I sold to open a covered call this morning, specifically the $42 July weekly. KO reports next week so the premiums were a bit elevated. I wanted to take advantage of that and pocket a little cash, $51 to be exact.
So that's it for me folks. I probably won't be adding anymore positions until I close some I currently have open. My total max loss right now is around $4,700, which is about 24 percent of my total portfolio. 25 percent is my absolute limit.
For all you folks out there finding this blog for the time, I'm the Option Rider. I play with a wide open hand, for better or for worse! Please feel free to look through my open positions, my winners, AND my losers. Any advice, thoughts, comments or helpful tips are welcomed at firstname.lastname@example.org.