Update 12/9/11

MCK PCCRC

MCK was closed today as it had become a loser a week before the short expiration. The position was closed by selling 2 8/8/-5/-5 MCK Feb/Dec for 42.95 credit. The final tally on the trade was a loss of 4%.

BIIB PCCRC

Today I rolled the shorts in BIIB from Dec to Jan for a $5.50 credit. Profit on the trade is now at 6%.

Update 12/2/11

MCK PCCRC

No trades were made on MCK the last 2 weeks. Profit is down due to the rallying market and falling IV. Currently profit is 2%.

BIIB PCCRC

No trades were made in BIIB either. Profit now stands at 5%.



IV usually drops in December so I will not be looking for new trades until the first of the year.

Update 11/18/11

MCK PCCRC

No trades were made to the MCK position this week. MCK dropped a couple of points on the week but still has a 9% profit.

ROST Call Seagull

On Monday I closed the ROST position with 2 orders shown in the risk graph. The final tally on the trade was a profit of 3%.

GOOG Put Seagull

I also closed GOOG on Monday by selling the Put Seagull for a 112.90 credit. The final result on GOOG was a $30 profit.



BIIB PCCRC

No trades were made on the BIIB position this week. Currently BIIB is showing a 4% profit.

Update 11/11/11

MCK PCCRC

No trades adjustments were made to MCK last week and it continues to do well boasting a 10% profit.

ROST Call Seagull

No adjustments were made either to ROST this week. ROST has earnings next Wednesday so I will be closing the entire position early next week. Currently there is a slight profit of 2%.

GOOG Put Seagull

Friday the GOOG position became profitable for a while, although at the close Friday it was back in the red. I have not closed or rolled the position, but I will make that decision and trade early next week. The currrent loss is 1%.

BIIB PCCRC

On Friday I opened a new PCCRC in BIIB. It moved in a positive direction after the trade opened and is already posting a 2% gain.



Update 11/4/11

DLTR PCCRC

On Tuesday I closed the DLTR PCCRC with two orders as the position had 5 legs. The final tally on the trade was an 8% profit.

MCK PCCRC

I adjusted MCK on Tuesday by selling 4 Feb straddles for $11.25 credit. This was done to take some profit after an IV spike on Monday and Tuesday. Currently the position is profitable at +7%.

ROST Call Seagull

I did adjust ROST also on Tuesday by rolling 6 Jan Calls from the 80 strike to the 90 strike for a $5.90 credit. Profit is now at 6% on this position.



GOOG Put Seagull

No adjustments were made on the GOOG position and it is showing a loss of 4% despite being close to the short strike price. If things do not reverse this one will be closed next Friday.



Update 10/28/11

I was on vacation last week and was unable to update the blog until now.

DLTR PCCRC

No trades were made in the DLTR position the last two weeks and the profits have been dropping with the market rising and IV falling. The position p/l is now virtully flat.

MCK PCCRC

On Friday I opened a new PCCRC in MCK by buying the Feb/Dec PCCRC at the 85 strike for 13.60. The position currently has a loss of 1%.



NVS PCCRC

I closed the NVS PCCRC on October 20 by selling the position for a 10.25 credit. The final tally on the trade was a 9% profit.

ROST Call Seagull

No trades were made on the ROST Call Seagull the last 2 weeks although in looking at the risk graph, it is at a point where an adjustment could be made to lock in some profits. There isn't much profit to lock in at this point as profit currently is only 4%, but I will watch the position this week to determine if it should be adjusted.

GOOG Put Seagull

The GOOG Put Seagull has not done well with the drop in IV the last two weeks. No adjustments were done and the position has posted a 9% loss.

Update 10/14/11

DLTR PCCRC

DLTR lost quite a bit of its profits with the market moving up and IV falling. It is still profitable though so on Friday I rolled the shorts out to November for a $1.50 credit. Profit is now at 8%.

NVS PCCRC

No trades or adjustments were made to the NVS position last week. Normally I would have closed the position with earnings a week away, but I decided to give the position a few more days and will try to close on a day when IV is up. Profit was also down last week and is now at 7%.



ORCL PCCRC

ORCL profit was down last week as well to the point that there was a loss on the position. Since I do not roll a position that is showing a loss I closed the position on Friday for a $7.97 credit. Final tally on the trade was a 1% loss.



ROST Call Seagull

ROST also lost some profits last week but still had an overall profit so I rolled the shorts out to November for a $1.65 credit. The current position shows a profit of 6%.



GOOG Put Seagull

GOOG had a nice jump after earnings on Friday and I opened a new Put Seagull Jan/Nov at the 600 strike for $112.80. Despite GOOG dropping almost 10 points after opening the position, the overall profit is flat.

Update 10/7/11

DLTR PCCRC

DLTR was up a couple of points this week but IV fell some dropping profit in the position a little. No adjustments were made to the position and profit is now at 23%.

NVS PCCRC

NVS was pretty flat on the week and profit remained flat also and is currently 13%.

ORCL PCCRC

ORCL was up about a point last week and profit was up a little also. If it stays near the short strike the rollover next week will yield more credit. Profit is now 8%.

ROST Call Seagull

ROST was up 2 and 1/2 points this week and profit was up also. No adjustments were made and total profit is now 12%.

Update 9/30/11

DLTR PCCRC

DLTR was down every day this week but IV continued rising yielding additional profits. Overall profit is now 26% and if it continues much higher I may lock the profits in and close the position.



NVS PCCRC

NVS moved up most of this week and closed 2 points higher for the week. Profit was up a little and now registers a 14% gain.

ORCL PCCRC

ORCL ended up flat this week after rising early in the week and falling back late. There is now a profit of 7% on the ORCL trade.

ROST Call Seagull

ROST followed the same price pattern as ORCL this week and ended up almost a point higher. Profit moved up slightly as well and now stands at 9%.

Update 9/23/11

AAPL Put Seagull

AAPL moved higher the first 3 days of last week and I booked the profits and closed the position on Wednesday. The closing order was for a 61.05 credit giving a final profit total of 33%.

DLTR PCCRC

DLTR was also higher the first 3 days of last week and on Wednesday I rolled the extra long calls up to the 77.5 strike for a $4.70 credit to lock in some gains. This adjustment made the trade more delta neutral and when DLTR dropped later in the week additional gains were made. You can see the difference by comparing the risk graph without the adjustment:

to the risk graph with the adjustment:

Overall profit is up to 22% in DLTR.

NVS PCCRC

No adjustments were made in NVS last week. The stock moved up Monday thru Wednesday dropped Thursday and moved back near breakeven on the week Friday. There was a rise in IV giving an overall profit of 14%.

ORCL PCCRC

On Wednesday I opened a new PCCRC in ORCL after the stock rose > 8% after earnings. ORCL moved down by the end of the week although profit has remained flat.

ROST Call Seagull

No adjustments were made on ROST last week. The stock followed the same pattern, 3 up days, down Thursday and flat on the week. There is now a profit in ROST of 8%.

Update 9/16/11

AAPL Put Seagull

I said I would watch AAPL closely this week but I didn't (very busy week) and about $1100 in profit came out of the position. AAPL moved higher this week and if it keeps going up I could make those profits back. Since the longs are Nov there will be no more rolls of the position, just deciding when to close it. Current profit is 22%.



DLTR PCCRC

DLTR also moved higher this week, however, unlike AAPL, the profits on the DLTR PCCRC went up. If it moves a couple of more points higher I will look at locking in some profits with an adjustment, either rolling the long calls to a higher strike or selling some of the extra long calls. After a week in the trade, DLTR shows a profit of 9%.



NVS PCCRC

NVS was fairly flat for the week after moving down Monday then up the rest of the week. It is hanging around the short strike which is ok and profit was up a little on the week and now stands at 11%.

ROST Call Seagull

I opened a new Call Seagull today in ROST after finding it in ascan for new 52 week highs. There is a 1% loss on ROST as of Friday's close.



Update 9/9/11

AAPL Put Seagull

I rolled the shorts in the AAPL position from Sep to Oct on Friday for a $11.00 credit. In looking back over the last couple of posts it looks like I was using the wrong original cost basis for the % gain calculation. The original trade cost was $14,690 so two weeks ago the profit was 26%, last week the corrected profit is 24%, and today the profit now stands at 30%. In my experience with PCCRCs and the synthetic seagull equivalents, the profit typically has an upper limit around 30% barring an unusual price move (like a takeover), so I will watch the AAPL position closely from here and may lock in the profits by closing the position if I feel like the profits are starting to decline. Looking at the risk graph and comparing the current line (white) with the expiration line (red) it appears the profit can only go down from here.

DLTR PCCRC

DLTR dropped a little over a point last week but the profit on the position is unchanged at 1% as the IV rise offset the delta loss. No adjustments were made on the position.

NKE Call Seagull

The NKE Call Seagull gave some nice profits on Friday and I closed the entire position for a 17% total profit. With earnings coming up in a couple of weeks it did not make sense to roll the shorts to Oct only to close them a short time later. With the spike in IV Friday it was the perfect time to close NKE.

NVS PCCRC

NVS dropped 3 points this week and the spike in IV added some profit. I rolled the short options from Sep to Oct for a $2.50 credit. This roll reduced the debit and risk of the position by $2750. Profit is up to 9%.

Update 9/2/11

AAPL Put Seagull

The AAPL trade continued to do well this week despite AAPL stock falling 9 points on the week. There were no adjustments made on the trade although I will be rolling the short Sep options in the next 7-10 days. Currently profit stands at +30% after losing some ground this week.

DLTR PCCRC

Today I was filled on a new PCCRC in DLTR. After 1 day there is a 1% profit in the DLTR PCCRC.



NKE Call Seagull

With earnings coming in a couple of weeks I will be closing the NKE Seagull soon. No trades were made this week and profit in NKE has fallen to +9%.

NVS PCCRC

NVS was up abouyt 3/4 of a point this week, but profit has fallen. As long as there is at least some profit I will be rolling the shorts to Oct in the next week. Currently overall profit is +2%.

Update 8/26/11

AAPL Put Seagull

AAPL moved higher this past week although the move caused iV to fall bleeding out some of the profits. AAPL is approaching the short strike at 390 so I expect profits to pick up when Sep Theta starts kicking in. Currently there is a 33% profit.

NKE Call Seagull

NKE also moved higher this week slightly above the short strike. The IV skew has narrowed giving the position an additional $1000 of profit this week. The total profit is now at 11%.

NVS PCCRC

NVS moved up a little this week and is sporting a small 3% profit thus far.