Friday before the bell I exited my August SLB 120/115 credit call spread for a nice little profit. I played this trade very small - just one contract collecting a $175 credit. I closed it capturing $84, or 48% of the original credit. In a perfect world I like to get somewhere between 60 to 75 percent of the original premium received. But in this case, having set the trade up just a week before, I decided to take my gains.
Overall, last week was a good one! I booked $214 in profits on SLB, FB, TSLA, and NDX. Also I hit my 50th winning trade of 2014. My current YTD record is 52 winners, 20 losers and 7 assignments - that's a 66% winning percentage! Additionally, last week I got my 50th follower on Stocktwits (I currently have 56).
As we move into a new trading week, I'm rolling in pretty heavy. It's been months since I've had this many open positions. Let me just run through them real quick...
AFL August 62.50/60 credit put spread - I set this play up on Friday. I played 10 contracts, collecting a $510 credit. I'm already up $100 in the position. I was hoping for a close above $63.50, and we got it as the stock closed at 63.71 on above average volume. I believe we'll continue to run up into earnings on July 29th. This is a great play, but it does tie up quite a bit of buying power - $1970 to be exact. So once I get at least 50% of the original credit captured, I'll close and move on.
HSY August 95/90 credit put spread - HSY took a hit last week. It's sitting in the middle of my spread at 93.85. The $95 range had been good support, but now that it's been broken I feel like $95 will be an area of resistance. It's too early to tell, but I'll probably have to roll this position out. I'm only in it for 1 contract which delivered a $103 credit.
KO - I've got 2 calls sold against my shares, a July $42 weekly that expires this coming Friday and a November $42. These are simply income generating strategies and I'll roll them out if needed. I have NO intention of selling my KO shares.
MA - This is my only DEBIT spread. I normally do CREDIT plays - so this is an experiment. I'm only in it for 1 contract for a total debit of $172. I bought the Jan78 and sold the Jan83. Right now MA is moving in the right direction. I won't need to do anything with this one until it starts getting closer to $83.
ORCL August 41/40 credit put spread - I put this trade on right after the company reported back in June. I played the gap down thinking we'd bounce back. That hasn't really happened. The $40 area has shown to be good support, but I think we're about to break that. If we do $39 looks like the next level of support. If this plays out I'll have to adjust my position and roll this trade out to September. It was an aggressive play in the first place as I set it up in the money, so I've got a nice $470 credit in my account. That gives me some cushion if I need to roll.
QQQ August 95/96 credit call spread - Yep, you read that right! I got a little crazy Friday and set this bad boy up in the money collecting a $500 credit on 10 contracts. It's an aggressive play, especially with AAPL and FB reporting this week. If it gets out of hand I'll simply roll this sucker out. No worries, I've got a big credit to work with and the law of gravity on my side right?! Eventually what goes UP, must come down!
SPY August 198/199 credit call spread - I got kinda the same thinking going on here as well. Eventually we're going to get a nice pullback. Until then though, I'll keep adjusting this position. Right now I'm in it for 10 contracts that produced a $520 credit.
TWTR Sept $44 naked put - Man I've been stuck in this play for MONTHS! Here's a great lesson people - DO NOT SELL NAKED PUTS ON STOCKS YOU DO NOT WANT TO OWN!!!
WFM - I'm long 100 shares at $38.81 and last Thursday I set up an August 36/35 put spread for a credit of $360 on 10 contracts. My thesis is that we have bottomed, and I think we'll get some short covering up to at least $38.50. If we do, I'll close the spread BEFORE earnings. However, I'm sticking with the shares for a longer term swing trade.
For a detailed look at all my positions, July gains, YTD gains, winners and portfolio sizing simply click HERE!