Conservative Options Trades

THOR:

http://finance.yahoo.com/news/st-jude-medical-adds-more-113526461.html

http://finance.yahoo.com/news/thoratec-beats-q2-earnings-revenues-150503962.html

http://finance.yahoo.com/news/st-jude-acquire-thoratec-3-205108164.html

http://stockcharts.com/h-sc/ui?s=thor

Trade:
With THOR at 62.93
Jan 62.50/55 bull put spread for a net credit of $72
Yield = 72/678 = 10.6% in 158 days or 24.5% annualized

Price.................. Profit / Loss.......... ROM %
40.00.................... (678.00)............ -89.40%
45.00.................... (678.00)............ -89.40%
55.00.................... (678.00)............ -89.40%
55.99.................... (579.20)............ -77.23%
61.78......................... 0.00................ 0.00%
62.50........................ 72.00...............10.60%
65.00........................ 72.00...............10.60%
70.00........................ 72.00...............10.60%
75.00........................ 72.00...............10.60%
 
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PCP:

http://finance.yahoo.com/news/buffetts-berkshire-buy-precision-castparts-110745862.html

http://www.msn.com/en-us/money/stockdetails/fi-126.1.PCP.NYS?symbol=PCP&form=PRFIEQ

http://www.bloomberg.com/news/artic...-buy-precision-castparts-in-37-2-billion-deal

http://finance.yahoo.com/q/pr?s=PCP+Profile

http://stockcharts.com/h-sc/ui?s=pcp

Trade:

Mar 230/220 bull put spread for a net credit of $65
Yield = 65/935 = 6.9% in 180 days or 14.1% annualized

Price................. Profit / Loss........... ROM %
165.00................... (935.00)............... -93.10%
175.00................... (935.00)............... -93.10%
200.00................... (935.00)............... -93.10%
220.00................... (935.00)............... -93.10%
229.35........................ 0.00................. 0.00%
230.00...................... 65.00................. 6.90%
240.00...................... 65.00................. 6.90%
250.00...................... 65.00................. 6.90%
260.00...................... 65.00................. 6.90%
 
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BND:

http://finance.yahoo.com/echarts?s=BND+Interactive#{"range":"5y","allowChartStacking":true}

Trade:
With BND at 81.44
Mar 80/77 bull put spread for a net credit of $65
Yield = 65/235 = 27.7% in 232 days or 43.5% annualized


Price.................. Profit / Loss........... ROM %
60.00..................... (235.00).............. -72.33%
70.00..................... (235.00).............. -72.33%
75.00..................... (235.00).............. -72.33%
77.00..................... (235.00).............. -72.33%
79.50.......................... 0.00................. 0.00%
80.00........................ 65.00................ 27.70%
85.00........................ 65.00................ 27.70%
90.00........................ 65.00................ 27.70%
100.00...................... 65.00................ 27.70%
 
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ZBRA:
(a trade for shorter attention spans)
http://finance.yahoo.com/news/zebra-technologies-crumbles-weak-q2-144002201.html

http://stockcharts.com/h-sc/ui?s=ZBRA

Trade:
With ZBRA at 85.73
Aug 85/80 bear put spread for a net debit of $130
Yield = 370/130 = 284% in 10 days or a gazillion percent annualized

Price................... Profit / Loss........... ROI %
60.00..................... 370.00................ 284.62%
69.31..................... 370.00................ 284.62%
79.12..................... 370.00................ 284.62%
80.00..................... 370.00................ 284.62%
83.70......................... 0.00................... 0.00%
85.00.................... (130.00)............. -100.00%
88.92.................... (130.00)............. -100.00%
98.72.................... (130.00)............. -100.00%
108.53.................. (130.00)............. -100.00%
 
stevegee58 said:
ZBRA has been consolidating under very low volume after the big drop. It'll be interesting to see how it plays out.
More...

Yep...closed at 89 so I'm out $130.

:)

Much more aggravating today is Delta Airlines. I have an early morning flight out of MYR and had to get seats assigned. It cost me $50 on top of my airfare to have a place to sit down. Did they think I was going to hang on a subway strap to Atlanta?

They rig their prices to make them come up lowest on Expedia and then add seat fares as well as luggage fares so it ends up Delta costs the most instead of the least like they pretend. Grrrrr.

http://finance.yahoo.com/news/complaints-airlines-soared-2015-u-162944474.html
 
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stevegee58 said:
Who knows. Maybe ZBRA will fall out of bed today or tomorrow...
More...

Well ZBRA went down enough for me to close out with a profit. As for the rest of my portfolio this remarkable decline is not giving me much of a problem...yet.

http://finance.yahoo.com/echarts?s=SPY+Interactive#{"range":"5y","allowChartStacking":true}

I have enough of a bearish and bullish mix, my bond spreads are unaffected and my bullish spreads were placed enough OTM that they are also not threatened so far. I really don't know what has triggered this blow-up but am sitting tight so far.
 
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I had written off the trade earlier in the week but was able to close out the ZBRA spread early afternoon for a small profit. 70% ROR isn't so bad.
I try to avoid managing positions on expiration day but you gotta be on your toes in the markets.
 
JAZZ:

http://finance.yahoo.com/news/bear-day-jazz-pharma-jazz-130101280.html

http://www.thestreet.com/story/13263159/1/roof-leaker-to-watch-jazz-pharmaceuticals-jazz.html

http://finance.yahoo.com/q/ks?s=JAZZ+Key+Statistics

http://www.msn.com/en-us/money/stockdetails/fi-126.1.JAZZ.NAS?symbol=JAZZ&form=PRFIEQ

http://stockcharts.com/h-sc/ui?s=jazz

Trade:
with JAZZ at 165.57
Jan 175/180 bear call spread for a net credit of $110
Yield = 110/390 = 28.2% in 143 days or 72% annualized
Prob = 63%
Expectation = .63(110) - .34(390) - .03(195) = 69.3 - 132.6 - 5.8 = -69

Price............ Profit / Loss........... ROM %
145.00.............. 110.00.................. 28.20%
155.00.............. 110.00.................. 28.20%
165.00.............. 110.00.................. 28.20%
175.00.............. 110.00.................. 28.20%
176.10................. 0.00.................... 0.00%
180.00............. (390.00)............... -71.80%
190.00............. (390.00)............... -71.80%
200.00............. (390.00)............... -71.80%
225.00............. (390.00)............... -71.80%
 
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