Aug 29, 2014
Option Block 367: Talking AAPL Collars
Trading Block: A relatively quiet day on the street. GoPro and Twitter were the only two names Apple still seems to be reaching new high. How did Tosaw play it?
Odd Block: Big put seller in Wells Fargo & Co. (WFC), puts trade in 21Vianet Group Inc. (VNET), and bullish paper in EZCHIP Semiconductor LTD (EZCH).
Xpress Block: A very quiet day on the OX desk. 3 to 4 leg trade tickets on Street Smart is tentatively scheduled to release on Friday, Sept 5.
Strategy Block: What you can do as a trader if you are not getting filled on your spread? Understanding the rules of risk management.
Mail Block: Listener questions and comments
- Question from Dr. Lawrence - Could you comment on a trade I did that was inspired by your talk about collars. I own apple at split adjusted $26. I bought Jan16 $80 puts for $4.50. I then sold the nov $120 calls for $1.05. I have many months to sell calls to pay for the puts. I really do not want to sell my underlying so I figure I will roll up and out if it goes up 20% in the next three months. I am content with the downside protection and will roll my long put when the Jan 17s are listed. On the upside I figure it cannot go up forever and will roll up and out as long as necessary but will try to continually sell calls to pay for my long puts. I would love to hear your opinions of my strategy.
- Question from Samuel - I am really enjoying your website as a trader. I read it every day. My question is, is there any scanner to show us unusual volume for options on future or FX? As we have one or two on equity, or to show you if the options been bought or sold. Thank you kindly.
Around the Block: Holiday weekend, so keep an eye on decay. Will S&P stay above 2000?