Standard Monthly Options expire at the end of this week. Since we have 7 open positions to address, we thought we should discuss them now so you have time to decide what you might want to do as you close out your positions as the week progresses. The following table summarizes those trades along with an update on current pricing. As of Friday’s close, these trades show a cumulative gain of $500.
| 1/30/17 | Current | Gain / Loss | Action | |||||||
| Underlying | 28.06 | 28.29 | ||||||||
| DISCA | Discover Communications | Sell | 1 | 4/21/17 | 27.50 | Put | 1.25 | 0.13 | ||
| Buy | 1 | Cash | 27.50 | 27.50 | ||||||
| 26.25 | 27.37 | $112 | Expire | |||||||
| 2/1/17 | Current | |||||||||
| Underlying | 23.53 | 24.54 | ||||||||
| IPG | Interpublic Group | Sell | 1 | 4/21/17 | 25.00 | Call | 0.45 | 0.35 | ||
| Buy | 1 | Stock | 23.53 | 24.54 | ||||||
| 23.08 | 24.19 | |||||||||
| Dividend | 0.11 | $122 | Expire | |||||||
| 2/15/17 | Current | |||||||||
| Underlying | 15.98 | 18.2 | ||||||||
| HPQ | HP Inc. | Sell | 1 | 4/21/17 | 17.00 | Call | 0.27 | 1.24 | ||
| Buy | 1 | Stock | 15.98 | 18.20 | ||||||
| 15.71 | 16.96 | |||||||||
| Dividend | 0.13 | $138 | Assign | |||||||
| 2/24/17 | Current | |||||||||
| Underlying | 30.48 | 29.27 | ||||||||
| JJC | Copper ETF | Buy | 1 | 4/21/17 | 35.00 | Call | 0.15 | 0.05 | ||
| Sell | 1 | 4/21/17 | 31.00 | Call | 1.25 | 0.08 | ||||
| -1.10 | -0.03 | $107 | Expire | |||||||
| 2/27/17 | Current | |||||||||
| Underlying | 71.55 | 66.47 | ||||||||
| ESRX | Express Scripts | Sell | 1 | 4/21/17 | 70.00 | Put | 1.69 | 3.60 | ||
| Buy | 1 | 4/21/17 | 65.00 | Put | 0.61 | 0.24 | ||||
| -1.08 | -3.36 | -$228 | Roll | |||||||
| 3/3/17 | Current | |||||||||
| Underlying | 87.34 | 87.72 | ||||||||
| HCA | HCA Holdings | Sell | 1 | 4/21/17 | 87.50 | Put | 2.80 | 0.95 | ||
| Buy | 1 | 4/21/17 | 82.50 | Put | 1.10 | 0.08 | ||||
| -1.70 | -0.87 | $83 | Expire | |||||||
| 3/12/17 | Current | |||||||||
| Underlying | 135.96 | 133.72 | ||||||||
| IWM | Russell 2000 ETF | Buy | 1 | 4/21/17 | 140.00 | Call | 0.90 | 0.02 | ||
| Sell | 1 | 4/21/17 | 133.00 | Call | 4.28 | 1.74 | ||||
| -3.38 | -1.72 | $166 | Close | |||||||
- Discovery Communications (DISCA) is a cash covered put. We suggest letting the put expire and we will write another one the Monday following expiration.
- Interpublic Group (IPG) is a buy-write. We would let the call expire and we will write another one the Monday following expiration.
- HP Inc (HPQ) is a buy-write. The call is in the money, so the stock will get called away and the position will come to an end.
- Copper ETF (JJC) is a short call spread. We will let the position expire worthlessly.
- Express Scripts (ESRX) is a short put spread. This is a cheap stock that got cheaper due to the uncertainty around healthcare legislation. We still like the company and the stock and will let the position get assigned. On Monday following expiration, we will sell August 18, 2017, $70 strike against the stock we take in. That option is currently selling for $2.25.
- HCA Holding (HCA) is a short put spread. At this point, it is uncertain if it will get assigned or expire worthlessly. Like ESRX it is a stock that got cheaper due to the uncertainty around healthcare legislation. If it gets assigned, we will write a call against it. Otherwise, it will expire worthlessly and we will sell another put spread. Strikes and expirations to be determined later after we see what takes place.
- Russell 2000 ETF (IWM) is a short call spread that was a hedge against the portfolio which is net long. We suggest a short call spread as we were looking for a correction and not a significant bear move. Feel free to close it out at any time, ideally after one more smackdown. While we think the there is some additional downside left, we think it will be choppy and additional profits will be had by the nimble.
