Option Investor

Portfolio Management, CAI, IBM, AMZN

Printer friendly version

We've got some positions to manage here.

CAI $65.45

Unfortunately, CAI opened at $65.20 and the call options @ $0.75, As we stated last night if CAI breaks above $65 on the opening we would stop out our position hopefully at $0.75 - $0.85 our position was stopped out at $0.75 for a net lost of $0.30. Even though CAI bounced back down to $64.50 mid day, it closed even higher then our stop, so if we had held the position we would have been looking at $0.85 - $0.90 going into tomorrow short a July 65 call. However, we were stopped out at $0.75 and we took our $0.30 loss

That leaves only our BHH position out in October to deal with from our Jul positions. We will monitor closely, maybe even looking to get out of the position all together if the situation presents itself in the near future


IBM $81.45

IBM seems to be just on a mission. The stock has moved straight up over 6 points since July 7, when it was hanging around $75.50. With the stock currently trading at $81.45 at the close of July 13th, it seems that a quick exit may be merited. If $82 is broken look to leave this position early and try to make the loss back over all this month. I would like to hold on until the July option series expires and see where we are, which could lead to a $2.50 - $2.75 Debit to close out if IBM breaks out above $82. Currently to close out the position it would be a DEBIT of $2.10 or a NET loss of $1.60 since we received a NET credit of $0.50. Let's hold here to expiration with a STOP at a NET DEBIT of $2.50 or a $2.00 loss or a penetration and
Close by IBM over $82.25.

AMZN - Amazon $36.51

It seems that Amazon wants to break out to the upside after bouncing off of $33 around July 1st, the stock has went directly up to test and break the $36 area. This puts out August 35 calls in a MONITORING position, since we received a credit of $0.80 and now are looking at a DEBIT of $2.10, we face a NET LOSS of $1.40. A test of $37 is probable. Any breakout above $37 and we take our loss. Looking for a STOP loss of $2.45 less the $0.80 credit we received of $1.65 or Amazon test and close above $37.

Monthly Cash Machine Newsletter Archives