Trade Alerts


Roll IBM and BA expiring July calls Both our IBM covered call and BA call diagonal are showing small profits. We’ll remove them and take the cash. Here are the trades: Trade IBM: Buy 1 IBM Jul 200 Call Sell 100 IBM Shares Price: $197.10 Total Profit: $391 BA: Buy 1 BA Jul 100 Call Sell 1 BA Nov 100 Call Price: $17.60 Total profit: $85...

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Adjust AAPL Call Backspread We will adjust our AAPL Call Backspread which is showing an unrealised loss of around $300. AAPL has struggled since we put the trade on – but is beginning to show signs of life. With Apple on $422 this trade adjusts the breakeven from the current $455 (ie AAPL would now have to rise to that level for us to show a profit) to $429. Here’s the trade: Trade Remove the current position: Buy 1 AAPL...

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SPY Double Calendar and VIX Calendar Exit SPY Double Calendar The SPY short June options on our SPY double calendar expired over the weekend. We will therefore close the two remaining long July calls. This trade was progressing well until the recent market falls and so will be exited for a loss. Sell 10 July 163 Call Sell 10 July 170 Call Price: $1.33 Total proceeds: $1,330 Total Loss: $230 (15%) VIX Calendar The mitigating trade is...

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IBM Covered Call roll We currently hold 100 IBM shares and a short June 200 Call which expires today. IBM has fallen in the last couple of days below $200. This trade is to roll it to the next month. The unrealised loss on this trade is small (if you include the dividend already received) and I believe the market will recover as it realises Bernanke’s recent comments on QE are not as bad as they thought. Anyway, here’s the...

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Apple Call Backspread We are going to return to an old favourite: Apple (AAPL). Let’s make a couple of observations and then see if we can put together a trade to exploit these. The first thing to note is that Apple’s been in the doldrums for the past few months after its dramatic fall from $700+ to its current $430 back in March. However it seems to have found a level around this $420-$450 mark (only dropping below this...

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