$SPY Options Action trade - scott

28 sep - on the web extra today , scott has a SPY trade in response to a viewer question, heres the clip web extra

Buy the Jan 143/130 put spread for 3.25

im not a big fan of going so far out for my protection, i would do a serious of put spreads vs one big one that far out. scott says he wants the protection to kick in right away, sure, this will gain a bit if market goes down next week, but so will a put spread thats for Oct opex. but lets look at if this protection "kicks in right away" come Jan opex. as shown in the video clip, the SPY needs to be at 139.75 at jan opex to "kick in right away"...so in other words you will suffer a 10% loss FIRST before you protection kicks in right away. hardly my definition of protection. see all of scotts on-air trades in this google docs spreadsheet

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$MSFT Options Action web extra trade - scott

21 sep - scott doing the web extra again tonight and answers a viewer note, heres the clip web extra . viewer writes she has held the stock for "a very long time and has done nothing"... thats seems a couple years to me.. but then again its up 30% since last year..regardless..depends on your thesis for entering into MSFT.. for the dividend, for the tech exposure, for the windows 8 hype..dont know but also depends on how many shares she has.. have 1000 shares and wish you had bought apple...then dont mess around looking for a secret options strategy to make something happen in order to get out.. if "its done nothing".. sell..sell it now and get into AAPL Jan2015 DITM leaps with that money... sell whats not moving or what hasnt moved and put it to work elsewhere.
    but if you are married to MSFT and still want some type of options play AND want to get out , scotts Nov Ratio spread might work . see all of scotts on-air trades in this google docs spreadsheet

Buy the Nov 32/33 call ratio spread (buy one 32, sell two 33's) for zero (for every 100 shares you own), its a good setup.. if its below 32 at opex then no harm no foul, above 34 and you stock gets called away

i like ratio spreads and profit range on this one at Nov opex is 32-34. my alternative is if you want to keep holding, keep collecting that dividend, stable stock price..yada yada.. then instead go out 2months and sell the Nov 33 covered call for about .31... if you are ok with selling your stock a bit higher be more aggressive and sell the Nov32 covered call at about .60.. collect that premium..collect your dividends, keep the stock.. depends what your thesis is.

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CLOSING the $NKE Options Action trade - Mike

28 sep - show revisits the trade from last week with the usual graphic heavy lead in and oversize smiles. was a good winner and included a surprising and possibly first of its kind real live tweet from mike khouw updating the trade during the trading day. the stock opened right at the short 92.50 strike area, once i saw mikes tweet i priced this spread out at about 1.40 , so nearly a double. mike sums it up nicely in todays video clip, todays clip , about taking this trade off right away after the event. if you followed this trade and for some reason did not close it out in the morning, you can still take a profit on the Oct puts which were going for about a dollar..or if you want to get cute you can do another calender spread by again selling the 92.50 weekly put..which was going for about .30. nevertheless, a good trade and good followup for a change. see all of mikes on-air trades in this google docs spreadsheet

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21 sep - mike khouw with a trade on Nike for earnings which look to be next thursday, heres the video NKE clip

Buy the 92.50 weekly / Oct put calender for .75

i like the trade setup, would wait till day of or day prior to putting this on in case there is a move before that so you can base your strike selections on where you are at that point.. mike using the 92.50 strike since that is about where options are pricing in a move to right now.. its a cheap bet as well..since earnings are on thursday p.m. , if you get the direction correct the front month puts will decay big time since they only have one day to trade till they expire. see all of mikes on-air trades in this google docs spreadsheet

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