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%.