Housekeeping: Taking Care of Winners

Booking gains on several names as the market continues to rip higher:


YUM - Been waiting for this a long time.  On Feb 3, I suggested buying April 36/39 call spread for $1.05 on improving comps.  Link: YUM Call Spread.  The spread has expanded nicely ever since McDonald's reported good comps two weeks ago.  Closing the spread for $1.80 or 71% profit.  


LPX - On Feb 9, I suggested buying March $7.50 calls for $0.40 based on potential breakout from the converging triangle and upcoming earnings.  Link: LPX Trade.  We sold half and took 100% profit at $0.80.  The stock continues to go up and now calls have expanded further now trading at $1.15.  I am selling the remaining half for 187.5% profit.  


ZION - On Feb 3, I suggested buying July 21/25 call spread for $1.20 on a potential breakout to the upside using my technical indicators.  Link: ZION Call Spread.  The stock did break out and continues to rip higher.  The bid/ask spreads are bit too wide here, so I will try to close it for $2.10 or 70% profit.  


GE - On March 12, the trigger hit as the stock broke out above $17.  Link: GE Breakout.  We got in June $16 calls for $1.55 which are going for $2.55 as of this writing.  As early as yesterday I suggested holding calls for further gains, but as we sit here on 64% gain in 4 four days, I have to take some off the table, so I am closing half.  On a run to $19, the plan is I will sell June $20 strike calls against remaining half of June $16 calls, effectively converting into a calls spread.   


AAPL - A wonderful trade!  On March 5, I suggested buying Mar/Apr $230 calendar spread for $2.85.  Link: AAPL Calendar.  As of this writing, the calendar spread has expanded to $4.85 or 70% profit in two weeks, and Mar $230 calls still have 40 cents to bleed.  However, the Gamma risk is too high, therefore instead of waiting until Friday expiration, I am rolling March $230 calls to April $240 calls for net credit of $1.80.  


SNDK - On March 1, the company significantly raised their guidance and the stock broke out above $30 on heavy volume and I immediately suggested selling Mar 29/30 bull put spread for $0.24 credit.  Link: SNDK Bull Put.  Now, the stock trades at $34 and I fully expect the puts to expire worthless.  That's 31% profit in two weeks.  By the way, two days ago I reported a large institutional trader bought 6000x July 34/40 call spread.  I still like that trade and might buy the spread on a pull back.  


AKS - On Feb 24, I suggested 18/19/24/25 iron condor for $0.25 credit.  Link: AKS Iron Condor.  There were rumors that AKS may get bought out that ran the stock above $24, but two days later Goldman downgraded the stock and now it trades below $24.  I still expect the iron condor to expire worthless for 33% profit.  


Aside from above trades, we have a bunch of other trades that don't currently require any adjustments and are working perfectly as expected.  That includes RIMM, POT, LVS, WYNN, VRSN, PCX, MEE, LCC, FSLR, and LEAP.


Turning out to be a great month!