Update 3/4/11

Click to go to the VEGA Trading discussion forum on Insane Money

NOV Bullish Diagonal

NOV went down Monday and Tuesday, then reversed Wednesday and Thursday and with the 2 up days and 2 up MACD days my trigger was hit to uncover the position.

So late Thursday I bought back the 8 short APR 85 calls for 2.30. Since my longs were under 90 days to  expiration I then rolled them out to August. I sold 11 May 75 calls and bought 9 Aug 75 calls for 0.89 debit. To hit my target delta of 0.65 to 0.7, I needed to roll to the same strike in August, which meant I could not keep the same number of contracts without a significant debit (adding risk to the position). I chose 9 contracts as it added less the $1.00 additional debit to the position. NOV fell again today but was up some on the week and profit is up to 681%.

XLE Bullish Diagonal

XLE continues in the upward channel it has followed since September this week and no new trades were made. 

The trigger to cover would be 2 down days coupled with 2 down MACD days. Tuesday was down in price and MACD but Monday and Wednesday were up, so nothing has triggered yet. Friday was down also so if Monday confirms with a down day and MACD I will sell the appropriate Apr calls to cover the position. Profit was up some this week and stands at +548%.

UA Bullish Diagonal

UA's price and MACD was up last Friday and Monday they were up again so I uncovered the position by buying back the Apr 70 calls for 1.95. Then UA went 2 down Tuesday and Wednesday and they were coupled with MACD going down as well. 

I was out of town Wednesday when this trigger hit and normally I would have covered the position near the close Wednesday. I did not want to make that trade from my phone since I could not see option deltas to verify the correct strikes to sell, so I decided to wait until the open Thursday to make the trade. UA gapped up Thursday and rose all day, so though I had a stop limit order to cover, it never filled. Today UA was higher as well, which would have given a signal to uncover again, which I didn't need to do as I was already uncovered. So it turned out to be good fortune that I was unable to make the covering trade on Wednesday as my profits would have been lower had I made that trade. Overall profit in UA is now 159%.

DECK Bullish Diagonal

DECK had a big 5% drop on Tuesday and the short call dropped to 20% of its initial value. So I rolled the short from Mar to Apr at the same strike for a 0.72 credit. The 100 strike was chosen to maintain a 0.4 delta difference with the long call. On Thursday and Friday DECK was up and MACD was up giving the trigger to uncover the position. 

So late today I bought back the 2 Apr 100 calls for 1.30 debit. DECK is down 3 points since I opened the position giving a loss that is currently 10%.