Wednesday, February 1, 2012

More Market Neutral Option Plays

CCI continues to add option positions that will profit if the market goes sideways.

 Click here   to read my article at seeking alpha about recent trades in Amazon(amzn) and Starbucks (sbux)
Immediate after Amazon earnings, CCI was able to close that trade for a gain of  $113.51/contract.  The Starbuck trade is slightly in the money  ($.18/contract) and we are still holding that.

Based on some readers comments, we decided to continue pursuing a weekly option trade.  Specifically today we added a 40/45 - 60/65 iron condor in the highly speculative and volatile green mountain coffee (GMCR).  Weekly option volatility was over 250% so we could not resist looking to sell some premium at those levels.  The stock is up 20% after hours on strong earnings so this might not have been the best play, but hopefully we can salvage some of this trade in tomorrow market.

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