Weekend Portfolio Analysis (February 21, 2015)

Market Conditions This week the market traded in a fairly narrow range until Friday when it advanced to another all-time high. The SPX opened the abbreviated week on Tuesday at 2096.47 and closed Friday at 2110.3, up 13.83 or 0.7% for the week.  Despite the drop of crude oil prices on Friday, the market reacted positively to…

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/CL May 2015 75/30 Strangle

Frequent readers of this blog have likely noticed that /CL options trades are a regular occurrence in my portfolio. /CL options have proven to be one of the most profitable strategies that I embrace. This, of course, is due to the high leverage that /CL offers. As with any highly leveraged position, there is much…

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Weekend Portfolio Analysis (February 14, 2015)

Market Conditions This week the market rallied to an all-time high on Friday with the SPX opening at 2053.47 and closing at 2096.99, up 43.52 or 2.1% for the week.  The other major indexes fared equally as well with the Dow breaking the 18,000 barrier for the first time this year and the Nasdaq moving to its…

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GRPN Earnings Trade

Earnings announcements are made by publicly traded companies on a quarterly basis. The earnings announcement will be made after the close of the market or before the opening bell. Because of the uncertainty that surrounds these announcements (stocks can increase or decline significantly after an earnings announcement), the nearest term option prices will be highly…

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April 2015 /CL Strangle

Yesterday’s trading session saw crude oil (/CL) give up most of the gain from the previous two sessions. The increase in volatility offered another opportunity to sell rich premium. I chose to sell a strangle as outlined below. Here’s the trade: Sell 1 /CL April 33 Put @0.08 Sell 1 /CL April 71 Call @0.12 Credit received: 0.20…

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