27dec - odd that of all the open trades that Options Action revisits this one after only a week, stock at 330ish now. see the original comments below. my quick thoughts on the comments are brought to you by Captain Obvious I think.. the thesis from below was to sell an upside call nearly two months in the future to generate some income and some protection with the uncertainties surrounding the stock. whole point of selling the call.. ie some insurance is to actually let it play out as in let it decay via time decay or just reduction in value if the stock drops so despite some more headlines the stock is actually UP 2 bucks since last weeks show and the short call up 50cents ish (mark to market loss). so unless the thesis changes (which it didn't on the show) there is no point in messing with this after just a week.
heres this weeks Options Action clip on Boeing Boeing clip . even my suggested alternate strike is up slightly. my consistent targets for selling premium is if I get a move after a 1-3 days where I show a 50ish percent of max profit I close it out since I have made the meat of the premium and then look to reenter something again on a rebound. many times can resell the same strike as the stock bounces around. sometimes doing nothing is the best thing when selling premium. like I said below youre not going to get much decay on mikes short call since its after earnings.
-------------------------------------------------------------------------------------------------------------------
22 Dec - quick segment on Options Action this week mentioning selling an upside call at Feb 345( going for $8.40, delta 35, IV 27, stock at 328 as I type)... here is the video clip
Options Action BA clip
I currently have an iron condor and also a diagonal spread on Boeing. my short call for the diagonal spread is the Jan10 340
Mike mentioned a client was short the Mar 350s but was recommending the Feb 345s instead. If I was long the stock I would not do either of those months. main reason is that earnings are on Jan29, so the Feb and Mar options are not going to get much decay until after. Plus IV tends to increase going into earnings so instead the last expiration prior to earnings is the Jan 24. so if you like the 345 level that short call is about $3.75 as I type. THEN sell the Feb short call right before earnings to get max premium
have 3 more weeks on my Jan10 340 short call and will be looking to sell something in the Jan24 expiration. will wait till right before earnings for the Jan31 expir to let that IV max out and get a juicier premium for my short call sale. also with earnings in 30days it keeps me from entering a new iron condor since the IV increase leading up to earnings will more than offset any time decay.
will see where the stock is after earnings. at some point Boeing/ FAA will clear the plans to fly. I expect some rumors to hit the markets prior to the official Phil Lebeau breaking news segment. if im able will try to sell upside calls on that rumor. the meat of the downside move for the halting of 737 production came during market hours with the rumors vs after hours and the official announcement. will assume the same happens for the upside.
purple in chart are my iron condor levels
No comments:
Post a Comment