It was an interesting trading week. I've got several options expiring today:
- Covered Yahoo 30 Calls - I picked up $41 per contract. I sold these based on the belief that there would be enough uncertaintly surrounding the buy-out, that the stock would close out under $30. Pocketed the credit, still have the stock.
- Express Scripts Credit Spread (Short at 65, Long at 70) - Earned $137 per spread. I like Express Scripts long term, but I think that almost everything medical will be neutral at best until the presidential election is over.
- Covered Tempur Pedic 22.50 Calls - Worth $38. Of couse the stock itself took a bath. I bought this for the long term after a bad earnings report drove the price down. Doesn't look like a good trade at this point.
- Long QQQ Calls at 50 - This was the long leg of a failed spread. Should have sold this when I unwound the spread for a moderate loss. Probably lost $100 bucks here hoping for a miracle.
- Long Diana shipping 25 Puts - Have you ever bought when you meant to sell? My bad. At least my total loss was only $148 bucks. Note to self - don't trade after mid-night.
At least I got a bounce on FSLR. I also picked up some Dolby (DLB) and Apple (AAPL) at prices I think will look good by the end of the year.
I also entered bear credit spreads in Electronic Arts. and China Life (LFC). I'm looking to do more of this kind of low risk, pretty low return trades because I have no clue what's going to happen with the market. I think assuming that the direction is not UP is the safest way to go for a while. So trade with the trend, but don't get greedy.
And I owe Snowman one for telling me not to sell puts on Blue Nile. I was selling 45s. I'd have been out a little over $100 / contract. Good advice Snowman. Too bad I didn't take it. I was just lucky my order didn't fill. Next time maybe I'll listen to you, man.
