Tuesday, October 19, 2010
Position Update
Current positions updated at the bottom of the screen. Portfolio is fully hedged. GOOG is closed, however the corresponding SPY hedge is open. Accordingly it is still shown among the active pairs. Portfolio is down 1.7% for the month.
Monday, October 18, 2010
Thank God!
Closed out of GOOG just in time. Some blood bath tomorrow after AAPL? Almost to the moon and back! Hope SJ had started selling some calls on his own holdings.
Friday, October 15, 2010
Long GOOG?
Really short term Put looks attractive to sell. The 580 Put that expires on 10/22 is trading at 2.1. Selling 1 Put gives a delta exposure of +10K to Google with a down side protection up to $578. Of course if google crashes we end up with a 58K long exposure to google. If GOOG trades above 580 on 10/22 $210 is yours to keep. Will the momentum continue for a week? Apple reporting on Monday is sure to beat. The tech frenzy might just continue for another week. Shorting equivalent amount of SPY could give additional protection.
Please note this is a high risk strategy for someone working on $50K in capital. If you are working on $500K then its a different story altogether. If your risk appetite is low please keep away.
At this point options on aapl look very expensive. One could make a play on implied vol going down significantly after earnings. However constructing this position is more difficult and will require constant monitoring/re-balancing. The vol drop after earnings could be very lucrative.
Please note this is a high risk strategy for someone working on $50K in capital. If you are working on $500K then its a different story altogether. If your risk appetite is low please keep away.
At this point options on aapl look very expensive. One could make a play on implied vol going down significantly after earnings. However constructing this position is more difficult and will require constant monitoring/re-balancing. The vol drop after earnings could be very lucrative.
Wednesday, October 13, 2010
Long MSFT
Long MSFT at 25.06. Like the 2.7% dividend. In addition some big Wall Street banks don't believe in this anymore. Do believe this could be a better bet than US treasuries. Where's the 10 year treasury right now? 2.53%... I will probably start selling some calls at some point just to get some downside protection.
Friday, October 8, 2010
Add to Short ZUMZ
Sell Nov 25 call on ZUMZ at 1.85.
T o recap
Long DKS, Short ZUMZ
Sell 2 22.5 Put at 0.85, Sell 1 25 Call at 1.85
T o recap
Long DKS, Short ZUMZ
Sell 2 22.5 Put at 0.85, Sell 1 25 Call at 1.85
Reducing Short exposure on ZUMZ
Not done by direct buying or closing of position. Instead sell November 22.5 Put at 0.83
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