Adjustments and Comments on Open Trades
SALT – Sold 10 Jun $5 puts for a net credit of $500. Maintain stop loss at $5.48. Because spreads widened, place GTC limit to close at $.10/share for 80% max profit.
HD – Purchased 10 Feb $137 calls for $6.90/share. Sold the weekly (2/3) $139 calls for $.80 to bring in premium to reduce cost basis on long call to $6.10/share (i.e., leg into a bull diagonal). The weekly (2/3) $139 calls for sold for $.80 will expire worthless. Sell the Sold the weekly (2/10) $138 calls for $.65 (should be more on the gap up) to bring in premium to reduce cost basis on long call to $5.45/share. Also sold 10 Feb $133/127 bull put spread for $570. Mid-point to close this spread is $.17/share, so close for $170 for $400 gain. Move stop 135.98 for both positions.
CPLP – Purchased stock $3.63. Note: Holding over 1/31 earnings is higher risk but we like the stock and sector long term. Targets low $5 and $6.25. Move stop .loss: to $3.34.
TWLO – Sold 10 Feb $26 puts for $700. Currently at $.35 x .52, so move stop loss break even.
MOS – Sold 10 March $30 puts for average basis of $650. It had a bearish gap down after entry and not acting well. We rolled down the March $30 puts to the March $29 puts for $300 (lowering our maximum gain on the trade to $350). Move stop loss $30.68. Acting better now so sell Feb (14 DTE) $29.5 puts for $260 to bring in additional premium.
GPRO – Sold 10 Mar 9/7 bull put spread for a net credit of $550. Gapping down on earnings. Held stop loss of 30-Min. low, close position now at $.53/share for small $30 gain. Note: See the beauty of selling premium – stock went WAY against us and still managed to exit without harm.
NFLX – Shorted 10 Feb 136/130 bull put spread (18 DTE) for a net credit of $1,200. Tighten stop loss to $137.88 to protect small gains.
NVDA – Purchased 10 weekly (2/10) 106/118 bull call spread for $5,250. Because short-term momentum trade, move stop $114.38 and sell into strength by market close, don’t want weekend risk and it lagging today. Current mid-point to close is $6,720 for $1,470 gain.
AG – Purchased 10 April 7 calls and sold Feb 10 calls for $3,050 (a bullish diagonal). Breaking out today, looks good. Move stop loss: $8.78.
GDXJ –Sold 10 Feb 40/45 bear call spread for $500. Sold Feb 35/32 bull put spread for $250 to bring in additional income to convert to short iron condor. Move stop loss on call spread to $39.32 and $35.88 on the put spread.
XBI- Sold 10 Feb 61 naked puts for $350. Move stop to $61.48.
CMG – Didn’t trigger, cancel, ugly now.
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director and Pristine Founder
Dan Gibby
Chief Options Strategist
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