CTXS PCCRC
CTXS was down 4 of the 5 trading days last week despite the overall market being slightly higher. Late in the week I took some delta profits on the puts and set the trade up to continue to be profitable if there is a reversal to the upside. The trade was to roll one of the Sep 11 85 Puts to the 77.5 strike for a $5.00 credit. This trade also reduces the risk in the trade by more than 25%. The current profit on CTXS is 10% based on the original debit of $2035.
CSC Bearish Diagonal
On Tuesday I decided to close the CSC position rather than cover the long. The final tally was a 20% loss.
TIF Call Seagull
On Thursday I opened a new Call Seagull in TIF based on the high flyer criteria. A call seagull is synthetically equivalent to a PCCRC, in this case the call seagull trade was cheaper than the PCCRC. I discovered after the fact the the IV/SV ratio was a little too high on TIF (slightly over 1), but I will stay with the trade as it met all of the other criteria as a high flyer. The initial trade was +18 Nov 70 Calls, +6 Nov 70 Puts, -12 Jul 70 Calls for a $19.75 debit. TIF was up on Friday and the trade is currently showing a profit of 3%.
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4 comments:
Can you advise "High Flyer" criteria?
Tom
How did you reach the ratios used in the trade?
Tom
Can you advise Option prices for the 3 options?
Tom
Tom,
I did a scan in finviz.com of the stocks rising > 30% over the last 90 days. The seagull is always a 3 1 2 ratio in this case times 6 to give me the total risk I wanted in the trade. The options prices are listed in the screenshot- 7.4 on the Nov 70 Calls, 5.35 on the Nov 70 Puts, and 3.9 on the short Jul 70 calls.
Tim
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