Forgotten Profits Trade Setup Archive

The TSLA August $225 puts are back in the money, so make sure you close out the position before the end of trading today to avoid assignment

CLOSE OUT

Buy to close TSLA August $220 puts

Sell to close TSLA August $225 puts

Best price possible before the close today

These expire 8/12/2106

TSLA is pulling back some more, so let’s sell some additional premium against the $225 puts were are currently long.

TRADE IDEA

Sell to open TSLA August $220 puts @ 0.50

These expire 8/12/2016

Sell same number as TSLA $225 puts you are currently long.

The TSLA short term puts that we sold expired worthless, allowing us to keep the 0.30 premium for a gain.

We are still long the TSLA August $225 puts that expire this Friday.

With VIX at the lowest level in a year, option buying strategies are looking attractive.

TSLA is selling off, so let’s take advantage and grab some premium that expires today.

TRADE IDEA

Sell to open TSLA August $225 puts @ 0.30 (these expire today-8/5/16)

Sell same amount as 8/12/16 $225 puts you are currently long.

Tesla Motors (TSLA) just reported earnings that were ok, but with a cash burn rate that was alarming. Stock not reacting…yet.

Let’s take a guarded bearish stance..IV collapsed post earnings, so puts are cheap.

TRADE IDEA

Buy TSLA August 222.50 puts @ 4.50

These are weekly options that  expire 8/12/16

Caterpillar (CAT) reported earnings that beat but lowered guidance substantially. The stock is off to the races post earnings, now trading at the highest P?E multiple in over 8 years.

Implied volatility has cratered, making a counter trend put play very cheap.

TRADE IDEA

Buy to open CAT August 81 puts @ 1.35

These expire 8/19/16

Our AMZN Call Spread expired worthless and we kept the entire 0.45  initial net credit for a 21.95% gain.

Our NE short calls expired worthless..I will look to sell additional calls tomorrow.

Noble Corp (NE) saw big and unusual call volume yesterday in the 7/22/16 8 calls. Over 30,000 contracts traded, with implied volatility jumping from under 60 to over 80.

This sets up a covered call trade with edge, buying the underlying shares and selling the July 8 calls (expire 7/22/16) .

Earnings are next week, so the calls expire before then to eliminate earnings risk.

TRADE IDEA

Buy NE stock

Sell NE July 8 calls (expire 7/22/16)

7.80 net debit

Sell 1 call for every 100 shares of stock you buy

Prime Day has come and gone for AMZN, with the stock reacting poorly post sales numbers release. Given the huge rally in the stock in anticipation, I think the short term high is likely in place for the time being in AMZN. A bearish short call spread makes sense to me here.

TRADE IDEA

Buy AMZN July 777.50 calls (expire 7/22/16)

Sell AMZN July 775 Calls (expire 7/22/16)

0.45 net credit

With earnings due 7/28/16, want to stay shorter term to avoid the earnings date.