Trading Day 34

Good evening!

Time to get mechanical. I can’t continue to hope the stock returns in my favor and instead trying to reduce basis. I will list the options I have here and what I plan on doing to help reduce that basis.

The only problem with some of this may be buying power. I am using nearly 100% of my buying power so will also try to close some winning positions or close my naked options.

  • I have a 140/145 short call spread with AAPL trading 141. I think this is still in play but if AAPL gets up to 142, I will put in a short put spread in the same expiration to add more credits. I could get $1.21 per contract
  • I have 2 AMGN positions. The first one expires in 8 days with a deep ITM short put vertical at the 167.5/175 – so a max loss. I will try to go inverted in the 8 day expiration as well as put on a further dated short call spread wrapped around a $2.50 loss per contract
  • I have an Iron Condor gone wrong in HTZ. This happened to me last time and eventually they self corrected. I have a 17.5/20/22.5/25 iron condor. I will be moving down the call spread and turn it into an iron fly. I might go inverted here as well and lock in a $2.50 loss per contract
  • I have a short put spread in JNJ that has gone past the breakeven point. If it doesn’t turn around tomorrow for a near scratch, I will also turn this into an iron fly
  • With some good positive momentum, I am going to release some capital by closing out all of my NFLX positions for a small gain
  • My TGT position has gone way past my short put spread with the iron fly. I will now roll down to be inverted as well as sell short call spreads in other expiration cycles to reduce basis
  • I don’t’ think there is a way to reduce basis in Yelp but will try to sell other call spreads as well as roll out in time right before earnings

It will be up to me to follow these tomorrow as I monitor my positions going into the weekend. I don’t know if this method is better content for you guys but let me know

-Mai

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