It’s been a crazy first week but we’re up a little already.
So far, only 16 of the 26 contracts we wanted have been filled and we’ve had some difficulty due to Wall Street Survivor not allowing us to enter spreads, which led us to getting fairly random fills. Also, I apologize for the lack of access but I’ve been assured those issues will be resolved next week. For that reason, I have not deviated from the Alert I sent out on Monday and all those unfilled bids remain in place but let’s use this time to review where we are now as far as what’s open and what’s left to fill.
As we’ve collected plenty of money already we are achieving our primary goal so this is not about making drastic changes but let’s analyse each play and see what has been filled and what needs to be filled next and whether or not we feel we can hit that target next week (action items are highlighted in red):
AIG: 2011 $30 calls filled at $13.45 (now $26.50), 2011 $30 puts filled at $9.05 (now $9) and Sept $33 calls sold for $4.70 (now $17.95).
It stinks that we couldn’t fill the $33 puts as that would have given us a big gain. In chat we discussed taking them out anyway and leaving the long calls as is, expecting a pullback. No matter what happens, we have an expectation of rolling this caller to October puts and calls and those strikes pay more than $20 so this is a non-issue at the moment and we successfully collected $470.
We do want to roll the 2011 $30 put to the 2011 $55 puts, now $24.88 for $16. That puts us into a guaranteed $25 spread for $16, a good trade-off.
BAC: 5 Sept $17 puts were sold for .51 (now .39) and 5 2011 $20 puts were bought for $5.45 (now $5.55).
We didn’t fill the call side of this spread, which was buying 5 2011 $10 calls for $8.60 (now $9.10) and selling 5 Sept $17 calls for $1.60 (now $1.38). We’re looking for the banks to sell off but, if we do trigger the short sale on the upside, we will need to take the cover leap. Collected $255.
C puts never hit our price so we are no longer interested in this trade.
New C trade: Buying 5 March $4 calls for $1.73 and selling 5 Oct $5 puts and calls for $1.15.
By the way. In the interest of sticking with the…
