update to the $JPM Options Action trade - dan

22 oct - dan making an adjustment to this trade per his tweet/ posting:

3:35 pm EDT - October 22, 2012 By Dan

Trade Update Oct 22nd, 2012:  With Oct expiration come and gone, the Oct 41 Puts that I was short expired worthless, and I am left long the Nov 41 Puts, for .48, the price I paid for the calendar.
JPM is noticeably weaker today than its money-center peers BAC and C, which is likely a continuation of a rotation into C since its Q3 earnings last Monday and CEO change last Tuesday.
I am now going to spread the Puts that I own and reduce my premium risk and break-even level, but cap my potential gains.

Action: Sold to Open JPM ($41.80) Nov 40 Puts at .42

New Position: Long JPM Nov 41/40 Put Spread for .06

again a good job of managing this position, now his cost basis is six cents..thats the max loss he can now have.

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Break-Even on Nov Exp: my original cost for Calendar was .48, less the .42 I received for selling the Nov 40 Puts, so my Max Risk is .06, my Max Gain is .94 if the stock is 40 or below on Nov Expiration.

5 oct - again a short post, dan with a put calender on JPM with earnings friday. note what he says in this clip, that he will do this trade in earnest later in the week. he also featured this trade on his website, i got the impression he already put it on, i might be wrong but just note his on-air comment. JPM segment and end of this clip

Buy the Oct/Nov 41 put calender (sell the Oct 41, buy the Nov 41puts) for .50

dans on-air trades