update to $HAL Options Action trade - mike

26 oct - been about a month since the trade was featured on -air and blamm, out of the blue a mike khouw tweet about a trade adjustment. first off, the Jan37 call is going for about .40 now.. so 60% loss so far with several months to go for opex.. per mikes tweet:

Michael C. Khouw 

Converting my long HAL call to a risk/reversal by selling Jan 30 puts @ .92.

pretty self explanitory, now selling the Puts to help finance the previously purchased calls. so as long as stock is above 30 at opex the "trade" will only lose 8cents. interesting way to leg into a risk reversal.

-----------------------------------------------------------------------------------------------------------------------------


28 sep - on the show on friday mike khouw and carter worth again for a trade, heres the clip HAL clip . a discrepency on this trade..mike SAYS to buy the Jan 36 call, so does the transcript, but the graphic shows the jan37 call.. when i looked at the options prices after hours...the pricing lines up more with the 37strike so im going with that..just a note, just because a "trade" is featured on the show does not necessarily mean they put their money where their mouth is..i get the feeling based his tone and the phrasing that he did not actually put this trade on.

Buy the Jan 37 call for $1.00

pretty simple trade, bullish thesis, so buying an upside call.. as usual when going out a few months like this i would recommend to make it a calender spread instead to lower your cost basis a bit..not a lot of premium with HAL but right now could sell the Oct 37 for 12 cents...so would lower cost basis 12percent. Easy Peezy. see all of mikes on-air trades in this google docs spreadsheet

click-->Follow @Mark_Lexus to follow on twitter