Thursday, July 25, 2013

Recap from Wednesday July 24 and Thursday July 25

I wasn't able to trade either day, but still kept an eye on the market for trades I liked.

On Wednesday, $CAT was out with earnings which disappointed and lowered guidance. The stock was only down 1% in the pre-mkt, trading around 85 or so. I figured it was a good risk/reward to play the 82.50 puts. It was, they opened around .25 and hit .50 by 1000hrs.

$BA was also out with earnings which beat and had the stock up around 109. I had trading against the tape but with $BA at 20x earnings and with a dividend down at 1.8% I just didn't see to much more upside to the stock. It ended up selling off to 107 by end of day. It sent the 108 puts from .60 to 1.50 and the 107 puts from .30 to .90 by end of day.

On Thursday, $FB was out with earnings which beat and sent the stock up skyrocketing in the pre-mkt. I figured playing puts off the open was the best bet, figuring institutions who had been long since 20 or so would peel off profits. That's pretty much what happened and the 33 puts went from about .40 to .70. However, it did rebound later in the day.

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