We've got four positions with legs that expire today. Here's what we're doing / where we stand:
Stock / Symbol: Macy's / M
Option Strategy: diagonal call spread
Entry date: Jan 20th
Price at time of trade entry: $23.68
Update: With Macy's reporting earnings before the market open on Tuesday when trading resumes next week, we're going to play it safe at take our profits here as we're up 12%.
Trade Details:
BTC 2 M Feb 25 Calls
STC 2 M Aug 22 Calls
for a net credit of $3.46 per contract
Max Risk: $616
Max Reward: $193 (30%)
Realized Reward / Return: $76 (12.3%)
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Stock / Symbol: Freeport-McMoran / FCX
Option Strategy: bull put spread
Entry date: Jan 20th
Price at time of trade entry: $54.57
Update: All we need is for FCX to close above $50 today and our position will expire worthless, giving us the full 12.6% yield. With FCX currently at $54.24, this looks very likely.
Current Position:
Short 4 FCX Feb 50 Puts
Long 4 FCX Feb 47.5 Puts
Max Risk: $888
Max Reward: $112
Max Return: 12.6%
Profit Range: $50 +
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Stock / Symbol: [private_monthly]Apache / APA [/private_monthly]
Option Strategy: diagonal call spread
Entry date: Jan 14th
Price at time of trade entry: $124.57
Update: The Feb 130 call we sold for $2.05 will expire worthless. When trading resumes on Tuesday, we'll look to sell a March call against our position.
Current Position:[private_monthly]
Long 1 APA Jul 125 Call
Short 1 APA Feb 130 Call
[/private_monthly]
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Stock / Symbol: [private_monthly]United States Oil Fund / USO [/private_monthly]
Option Strategy: diagonal call spread
Entry date: Jan 7th
Price at time of trade entry: $37.57
Update: With [private_monthly]USO[/private_monthly] trading under $39, the 39 strike calls we sold for $0.77 will expire worthless. Including the Feb 40 strike call we netted a credit of $0.44 per contract from, we've lowered the cost of our long calls from $4.07 down to $2.86 per contract. This puts us slightly up on the position. When [private_monthly]USO[/private_monthly] crosses back upwards of $37.50, we'll look to sell a March call against our position.
Current Position:[private_monthly]
Long 2 USO Jul 36 Calls
Short 2 USO Feb 39 Calls
[/private_monthly]
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