BABA $108.94 - New Campaign Entry

WklyOptions

Well-known member
269 24
Hi, T2W traders,

I opened a new bullish campaign late today on BABA. Since I will be closing out the EWZ campaign, it will mean that I have to replace it with another campaign. This BABA trading campaign will have the following parameters as its Initial Trading Plan:

1. Duration between 16 wks and 20 wks maximum.
2. On a $500k campaign size - the Initial Max Risk is (-6.7%). A 2nd bet allotment may be also added/necessary depending on how the campaign unfolds.
3. The BABA campaign is bullish - primary Target $120, secondary Target $138.
4. Front weekly options At the Money will be sold against the campaign to generate weekly cash income (and to reduce the Initial Cost Basis).

Chart & Position Analysis: {see attached #1}

The BABA chart pattern is strongly bullish in the Weekly and Monthly time frames (although only recently it was an IPO event). In addition BABA has a strong earnings report better than expected. More recently over the past several weeks, it has been a fairly tight congestion retracement pattern.

Today the intra-day time frames indicated significant bullish Order Flow and momentum burst activity. Hence the BABA bullish campaign was initiated.

New Entry:
5. BABA was at $108.94.
6. Bought to Open (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: {see attached #2} {see attached #3}
7. Initial Cost Basis & Max Risk: (-$6.70) per spread.

Adjustment:
8. Sold to Open (-50) BABA Dec(20th) $109 Call @ (+$1.17)
9. Bought to Open (+50) BABA Dec(20th) $110 Call @ (-$0.79)
@ Net Credit (+$0.38)

Adjusted Cost Basis: (-$6.32) per spread.

Bet Size Alloc & Max Risk: (-6.7%) initial bet size.

Plan:
10. HOLD and look to Adjust the front weekly option credit spread on Fri Expiry day.

Stay tuned for Adjustments and Updates at least 1x - 2x per week!

Best regards,

WklyOptions
 

Attachments

  • BABA - $108.94 - TOS 6 Scrns - New Entry 12.17.2014 - Init CB (-$6.70) - ACB (-$6.32) - Posted T.png
    BABA - $108.94 - TOS 6 Scrns - New Entry 12.17.2014 - Init CB (-$6.70) - ACB (-$6.32) - Posted T.png
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  • BABA - $108.94 - TOS Mtrx - New Entry - Init CB (-$6.70) - ACB (-$6.32) - Posted T2W.png
    BABA - $108.94 - TOS Mtrx - New Entry - Init CB (-$6.70) - ACB (-$6.32) - Posted T2W.png
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  • BABA - $108.94 - PL Grph - New Entry 12.17.2014 - $500K Eq - Init CB (-$6.70) - ACB (-$6.32) - p.png
    BABA - $108.94 - PL Grph - New Entry 12.17.2014 - $500K Eq - Init CB (-$6.70) - ACB (-$6.32) - p.png
    27.7 KB · Views: 184

WklyOptions

Well-known member
269 24
BABA $110.65 - Fri Expiry Adjs - New Cost Basis (-$6.59)

New Entry:
5. BABA was at $108.94.
6. Bought to Open (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: {see attached #2} {see attached #3}
7. Initial Cost Basis & Max Risk: (-$6.70) per spread.

Adjustment:
8. Sold to Open (-50) BABA Dec(20th) $109 Call @ (+$1.17)
9. Bought to Open (+50) BABA Dec(20th) $110 Call @ (-$0.79)
@ Net Credit (+$0.38)

Adjusted Cost Basis: (-$6.32) per spread.

Bet Size Alloc & Max Risk: (-6.7%) initial bet size.

BABA $110.65

Hi, traders,

Below please find the Adjustments and Update on the BABA campaign following Friday's Expiry session.

Friday Expiry Adjustment:
The BABA Dec(20th) $109/$110 Call Spread expired In the Money. There is a (-$1.00) post-expiry Adjustment to the Cost Basis.
@ Net Debit (-$1.00)

New Adjustment:
Sold to Open (-50) BABA Dec4(26th) $111 Call @ (+$1.08)
Bought to Open (+50) BABA Dec4(26th) $114 Call @ (-$0.35)
@ Net Credit (+$0.73)

Current Positions:

Short (-50) BABA Dec4(26th) $111 Call @ (+$1.08)
Long (+50) BABA Dec4(26th) $114 Call @ (-$0.35)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70)

Previous Cost Basis: (-$6.32)

Adjusted Cost Basis: (-$6.59)

Chart & Position Analysis:
BABA has regained its bullish trend/momentum bias on the Weekly and Daily time frames. There is mild resistance at the $115 zone. The Primary Target is at $120 and Secondary Target is in the $138 zone. {see attached #1}

The current campaign position remains Net positive deltas and is bullish. {see attached #2}

Plan:
1. HOLD positions. Let the BABA bullish trend unfold at its own pace.
2. Extract extrinsic time value from the Short (-50) Dec4(26th) $111 Calls.

Happy Holidays & Merry X-mas! :clap:

WklyOptions
 

Attachments

  • BABA - $110.65 - TOS 6 Scrns - Fri Expiry - Daily & Wkly Charts Bullish Now - Posted T2W.png
    BABA - $110.65 - TOS 6 Scrns - Fri Expiry - Daily & Wkly Charts Bullish Now - Posted T2W.png
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  • BABA - $110.65 - TOS PL Grph - Post Adj - Net Credit (+$0.73) - ACB(-$6.59) - Posted T2W.png
    BABA - $110.65 - TOS PL Grph - Post Adj - Net Credit (+$0.73) - ACB(-$6.59) - Posted T2W.png
    24.1 KB · Views: 173

WklyOptions

Well-known member
269 24
BABA $106.05 - Adj needed - new Adj Cost Basis (-$5.49)

BABA $110.65


Current Positions:

Short (-50) BABA Dec4(26th) $111 Call @ (+$1.08)
Long (+50) BABA Dec4(26th) $114 Call @ (-$0.35)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70)

Previous Cost Basis: (-$6.32)

Adjusted Cost Basis: (-$6.59)

BABA $106.10

Hi, T2W traders,

Chart & Position Analysis: (see attached #1)
BABA suffered a price decline this morning by some (-2.6%). The front weekly Short Dec4(26th) $111 Call has depreciated to near zero. It is time to exit the Short call - and create new Credit Spread to generate more income.

Adjustment Today:
Bought to Close (+50) BABA Dec4(26th) $111 Call
@ Net Debit (-$0.10)

Sold to Open (-50) BABA Jan1(2nd) $106 Call @ (+$2.40)
Bought to Open (+50) BABA Jan1(2nd) $109 Call @ (-$1.20)
@ Net Credit (+$1.20)

Net Net (+$1.10)

Current Positions:
Long (+50) BABA Dec4(26th) $114 Call @ (-$0.35)

Short (-50) BABA Jan1(2nd) $106 Call @ (+$2.40)
Long (+50) BABA Jan1(2nd) $109 Call @ (-$1.20)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70)
Previous Cost Basis: (-$6.59)
Adjusted Cost Basis: (-$5.49)

Plan:
1. HOLD positions.
2. Look to Adjust if BABA > $107.20

Best regards & Happy Holidays,

WklyOptions
 

Attachments

  • BABA - $106.05 - TOS 6 Scrns - Adj Needed - Posted to T2W.png
    BABA - $106.05 - TOS 6 Scrns - Adj Needed - Posted to T2W.png
    133.2 KB · Views: 225

WklyOptions

Well-known member
269 24
BABA $103.60 - Adjustment Wkly Expiry - New Cost Basis (-$4.77)

BABA $106.10

Current Positions:
Long (+50) BABA Dec4(26th) $114 Call @ (-$0.35)

Short (-50) BABA Jan1(2nd) $106 Call @ (+$2.40)
Long (+50) BABA Jan1(2nd) $109 Call @ (-$1.20)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70)
Previous Cost Basis: (-$6.59)
Adjusted Cost Basis: (-$5.49)

BABA $103.60 (campaign started 12/17/2014 when BABA $108.94)

Hi, T2W traders,

Happy New Year 2015! :clap:

Chart & Position Analysis: {see attached #1}

Over the past holiday trading week, BABA has remained in a tight price range - however its trend and momentum bias remains bearish over the shorter time frames including its Hourly and Daily and Weekly charts.

BABA is now testing Key Support at the $103 price zone. The unfolding of the BABA price action over the next two weeks will be critical - if BABA closes < $103 for several days in a row - its Price Action will imply more bearish bias to its next Key Support zone at $101.

The BABA Jan1(2nd) Bear Call spread at $106/$109 strikes will expire Out of the money.

The Adjustment today was:

(a) Generate additional extrinsic time value income by rolling into a Bear Diagonal Call Spread using the Jan2(9th) $106 Call option. :cool:

Adjustment Today:

Sold to Open (-50) BABA Jan2(9th) $106 Call
@ Net Credit (+$0.72)

Current Positions:

Short (-50) BABA Jan1(2nd) $106 Call - Expire Out of the Money
Long (+50) BABA Jan1(2nd) $109 Call - Expire Out of the Money

Short (-50) BABA Jan2(9th) $106 Call @ (+$0.72)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$5.49)

Adjusted Cost Basis: (-$4.77)

Plan: :idea:

1. HOLD positions - now in a Bear Diagonal Call Spread profile.
2. Extract extrinsic time value from the Short Jan2(9th) $106 Call option.
3. Look to Adjust if BABA > $106.50.
4. Look to Adjust into a new bullish profile IF/WHEN charts indicate BABA holding Key Support.

Best regards,

WklyOptions
 

Attachments

  • BABA - $103.60 - TOS 6 Scrns - Wkly Expiry Adj IM6 OTM - Roll to Bear Diag Sprd - Posted T2W.png
    BABA - $103.60 - TOS 6 Scrns - Wkly Expiry Adj IM6 OTM - Roll to Bear Diag Sprd - Posted T2W.png
    151.6 KB · Views: 263

CostaKapo

Active member
164 12
Hurting today in BABA myself
 

WklyOptions

Well-known member
269 24
BABA $101 - Adjusted Down into Diag Back Sprd - Cost Basis (-$4.22)

Current Positions:

Short (-50) BABA Jan1(2nd) $106 Call - Expire Out of the Money
Long (+50) BABA Jan1(2nd) $109 Call - Expire Out of the Money

Short (-50) BABA Jan2(9th) $106 Call @ (+$0.72)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$5.49)

Adjusted Cost Basis: (-$4.77)

BABA $101.00

Chart & Position Analysis: {see attached #1}
BABA is now testing Key Support at the $101 price level. If BABA closes below $101 consecutively for at least 3 trading days, this implies more downside to test secondary Key Support at the $97 price level. In addition the Hourly, Daily, and Weekly time frames remain bearish. :cool:

The short Jan2(9th) $106 Call has depreciated significantly. Given the ongoing bearish momentum bias, the position was Adjusted to generate additional extrinsic time value and maintain a bearish bias. The short Jan2(9th) $106 Call was exited at the same time.

Adjustment Today:
Sold to Open (-50) BABA Jan2(9th) $101 Call @ (+$1.64)
Bought to Open (+50) BABA Jan2(9th) $103 Call (-$0.84)
Bought to Close (+50) BABA Jan2(9th) $106 Call @ (-$0.25)
@ Net Credit (+$0.55)

Current Positions:
Short (-50) BABA Jan2(9th) $101 Call @ (+$1.64)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.84)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.77)

Adjusted Cost Basis: (-$4.22) (y)

Plan:
1. HOLD positions - now in a Bear Diagonal Call Spread profile.
2. Extract extrinsic time value from the Short Jan2(9th) $101 Call option.
3. Look to Adjust if BABA > $101.50 on a Close basis. :!:
4. If BABA develops Key Support - will look to roll DOWN the Long Mar(21st) $115C.

Best regards,

WklyOptions
 

Attachments

  • BABA - $101.00 - TOS 6 Scrn - Adj into Bear Diag Bk Sprd.png
    BABA - $101.00 - TOS 6 Scrn - Adj into Bear Diag Bk Sprd.png
    193.3 KB · Views: 183

WklyOptions

Well-known member
269 24
BABA campaign - managing Net Risk and Adj Cost Basis!

Hurting today in BABA myself

Hi, CostaKapo,

Yes, BABA continues to move to the downside strongly now at $101. I guess there is bearish influence from both (a) general market trend/momentum; (b) upcoming release of holding period for BABA holders from its IPO. Supposedly there is another release period sometime in late summer 2015.

My initial BABA campaign had a Cost Basis (-$6.70) x 50-lots or a Max Risk of (-$33.5k) in this campaign. For this risk, however, I control 5000 shares of BABA or a cap value of ($505k).

So far, unlucky getting caught into a market pull-back. However BABA is now at Key Support at the $101 zone. Beyond this level, the next Key Support is $97.

My bullish campaign has been Adjusted several times and currently is into a fairly neutral position with a Net Delta (+358) which is relatively small.

CostKapo - I never worry about getting caught on the "wrong side" of the campaign trade for a couple of very important strategic reasons: :smart:

1. I stay in the general Dominant Trend of the large institutional monies. This is best seen on the Monthly BABA chart - the momentum and trend remains bullish as the MACD Fast Line slope is to the upside.
2. On the Daily chart - there is Key Support at $101 (then later at $97).
3. If (and a big IF at that) - BABA finds support - I am ready to roll down my Long Mar $115 Call to a closer Strike to generate additional positive delta. :idea:
4. I have been able to manage "bi-directionality" - that is as the BABA trend turned bearish, I adjusted and rolled many times over to generate extrinsic time value and reduce my Initial Cost Basis.

In fact - my Cost Basis now is (-$4.22) - and the Mid Price for Mar $115C is $2.69.

So after being "wrong" directionally - my Net Risk exposure is (-$1.53).

I only need a couple more of weekly key Adjustments - and I can reduce my Net Risk exposure down to zero - a worst case scenario that will be Break-Even! :clap:

As options traders, the management of "bi-directionality" principles is an important Critical Success Factor skill-set that must be learned - and earned - by all options traders that desire to trade large multiple-lot campaigns.

Since you are a fairly large multiple-lot options trader, CK - are you not "hedging" and reducing Cost Basis constantly to remove max Risk from your BABA campaign?

What is your BABA position? And more importantly - what Adjustments have you been doing to manage and REDUCE RISK on an ongoing basis every week? :eek:

In my BABA campaign - I was willing to RISK (-$6.70) at the outset. Now that RISK is at (-$1.53) on a Closing basis - so there is NO STRESS here. And - I know that RISK and Adj Cost Basis is going down to zero over the next few weeks yet! (y)

Since options trading is your passion, CK - it is important that you study, review, and debrief your current BABA campaign! Don't delay and don't make excuses.

Strive to really learn your EDGE and learn to manage your deltas and Net Risk exposures ASAP! :!: :cool:

Let me know here - or via PM or email - if you want any input on the Debriefing process for your BABA campaign. Good luck - I hope to hear some good news and Adjustment ideas coming for your BABA campaign.

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA hit $101.50 - Adj by adding Jan2(9th) $103c - Adj Cost Basis (-$4.97)

Current Positions:
Short (-50) BABA Jan2(9th) $101 Call @ (+$1.64)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.84)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.77)

Adjusted Cost Basis: (-$4.22) (y)

Plan:

3. Look to Adjust if BABA > $101.50 on a Close basis. :!:

BABA closed @ $103.32

Hi, T2W traders,

$103.32

Chart & Position Analysis:

BABA bounced off the Key Support at $101 today as previously discussed in the last BABA Adjustment email. :cool: :smart:

When BABA hit > $101.50, it signaled that BABA may go higher - so today's Adjustment was to ADD another Jan2(9th) $103 Call to the already-opened Jan2(9th) $101/$103 Bull Call Credit Spread. :!:

Adjustment Today:

Bought to Open (+50) BABA Jan2(9th) $103 Call
@ Net Debit (-$0.75)

Current Positions:

Short (-50) BABA Jan2(9th) $101 Call @ (+$1.64)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.84)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.75)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.22)

Adjusted Cost Basis: (-$4.79)

Plan:
1. HOLD positions - the Jan2(9th) options are now in a Call Back-Spread profile. (y)
2. Extract extrinsic time value from the Short Jan2(9th) $101 Call option.
3. Look to Adjust at Expiry Friday on the Jan2(9th) options. :!:
4. Looking like BABA developed Key Support at $101. If get more confirmation on Daily Chart - will look to roll DOWN the Long Mar(21st) $115C to generate even more bullish torque. :smart:

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA $103.02 - Fri Wkly Options Expiry - Adj Cost Basis (-$4.46)

Current Positions:

Short (-50) BABA Jan2(9th) $101 Call @ (+$1.64)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.84)
Long (+50) BABA Jan2(9th) $103 Call @ (-$0.75)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.22)

Adjusted Cost Basis: (-$4.79)

BABA closed $103.02

Hi, traders,

Well, another set of Adjustments going into the Fri Wkly Options expiry session. This has been especially busy for the BABA campaign. I made Adjustments on Thurs (1/8) and Fri (1/9) - in the midst of travels, airports, from traveling to attend the CES convention in Vegas. :whistling

Chart & Price Action:

Recall that I was holding a Call Credit Spread on the Weekly Jan2(9th) $101/$103 Call spread, plus an extra 2nd set of Jan2(9th) $103 Call as defensive Adjustment against the bullish momentum. The 2nd set of Jan2(9th) $103 Call was purchased on 1/6/15 @ (-$0.75). Finally - my primary BABA "bet" was the long Mar(21st) $115 Call.

On Thurs, 1/8/2015 - BABA had a strong bullish momentum burst going from a weekly low of $100 up to the $105 level. Unfortunately I was not able to exit at its highs that morning b/c of travels. I did make an Adjustment on Thursday however.

Also on Fri, 1/9/15 - the remaining Jan2(9th) $101/$103 Calls expired In the Money. There is a Double Bottom pattern on the Daily and Wkly charts - with Key Support at $100. However - there is NO MACD Bullish Divergence pattern yet on any of the time frames - so BABA may yet re-test Key Support at $100. {see attached #1}

Adjustment (Thurs, 1/8/15):

Sold to Close (-50) BABA Jan2(9th) $103 Call @ (+$1.88)
Net Credit (+$1.88) (y)

Adjustment (Fri, 1/9/15):

Short (-50) BABA Jan2(9th) $101 Call = Expired In the Money
Long (+50) BABA Jan2(9th) $103 Call = Expired In the Money
Net Debit (-$2.00)

Sold to Open (-50) BABA Jan(17th) $103 Call @ (+$1.55)
Bought to Open (+50) BABA Jan(17th) $104 Call @ (-$1.10)
Net Credit (+$0.45) {Yield of 45% in 1 wk At the Money is good income} (y)

Current Positions:
Short (-50) BABA Jan(17th) $103 Call @ (+$1.55)
Long (+50) BABA Jan(17th) $104 Call @ (-$1.10)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.79)

Adjusted Cost Basis: (-$4.46) :cool:

Plan:
1. HOLD positions
2. Look to Adjust at Expiry Friday on the Jan(17th) options.
3. Look to Adjust if BABA > $103.40.
4. If BABA holds > $101 at Key Support on the Daily time frame - will look to roll DOWN the Long Mar(21st) $115C to generate greater bullish deltas. Still waiting for lower time frames "momentum burst" to the upside before the Mar(21st) $115C can be rolled down. For example, waiting for a strong Bullish Divergence between Price vs MACD.

Best regards,

WklyOptions
 

Attachments

  • BABA - $103.02 - TOS 6 Scrn - Expiry Adjs.png
    BABA - $103.02 - TOS 6 Scrn - Expiry Adjs.png
    170.9 KB · Views: 155

WklyOptions

Well-known member
269 24
BABA $96.89 - Expiry Fri - Adj Made to Bear Call Diag Sprd - Adj Cost Basis (-$3.48)

Current Positions:
Short (-50) BABA Jan(17th) $103 Call @ (+$1.55)
Long (+50) BABA Jan(17th) $104 Call @ (-$1.10)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.

Previous Cost Basis: (-$4.79)

Adjusted Cost Basis: (-$4.46) :cool:

BABA closed $96.89

Hi, T2W traders,

Oh, well - the ongoing BABA saga - started with a bullish campaign but the general market bearish trend and momentum bias has also caught up strongly into this BABA campaign. In addition there is some pre-IPO shares that are soon due to be unrestricted creating more Supply - hence the additional downside pressure for BABA price. :(

Fri, 1.17.2015, was Expiry Fri. The BABA charts remained bearish - so I Adjusted the BABA campaign into a Bearish Call Diagonal spread for now. :sneaky:

Chart & Position Analysis:
The general market and BABA specifically moved weaker to the downside this past week. The BABA Monthly MACD Fast Line actually turned down at the close. This suggests more downside for BABA.

The Jan(17th) $103/$104 Call Spread expired Out of the Money.

The BABA campaign was Adjusted into a Bearish Call Diagonal profile until such time that there is strong evidence of Key Support in the Hourly and Daily charts.

Adjustment & Expiry (Fri, 1/16/15):
Expiry (-50) BABA Jan(17th) $103 Call @ (+$1.55) = Out of the Money
Expiry (+50) BABA Jan(17th) $104 Call @ (-$1.10) = Out of the Money

Sold to Open (-50) BABA Jan4(23rd) $98 Call @ (+$0.98)
Net Credit (+$0.98)

Current Positions:

Short (-50) BABA Jan4(23rd) $98 Call @ (+$0.98)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$4.46)
Adjusted Cost Basis: (-$3.48) (y) {better, but more work needed!}

Plan:
1. HOLD positions.
2. Look to Adjust at Expiry Friday on the Jan4(23rd) Short Call options.
3. Look to Adjust if BABA > $99. :!:
4. Look to Roll Down the Long Mar(21st) $115 Call if Key Support develops on the Hourly and Daily time frames. :idea:

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA $103.99 - Adjs made this Expiry week - Adj Cost Basis (-$7.44)

Current Positions:

Short (-50) BABA Jan4(23rd) $98 Call @ (+$0.98)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$4.46)
Adjusted Cost Basis: (-$3.48) (y) {better, but more work needed!}

BABA $103.99

Hi, T2W traders,

Chart & Position Analysis:

BABA posted a Key Support Swing Low pivot at $95.50 on 01.16.2015. Then it moved up strongly with new bullish trend and momentum bias. This week is Expiry week for the front weekly Short $98 Call option - and it had to be adjusted as the Short Strike Price was attacked. Adjustment #1 (on 01.20.2015) was to overlay a Long front weekly $99 Call for protection. :smart:

Then today - the front weekly Short $98 Call had effectively zero extrinsic time value left. This was a good time to go ahead and roll it into the new front weekly strike at $104 - Adjustment #2. (y)

In addition another Adjustment #3 was made to Sell the Jan4 $104 Call to pick up extra premium going into expiry tomorrow. :cool:

Adjustment #1 (Tues, 01.20.2015):
Bought to Open (+50) BABA Jan4(23rd) $99 Call @ (-$1.78)
Net Debit (-$1.78)

Adjustment #2 (Thurs, 01.22.2015):
Bought to Close (+50) BABA Jan4(23rd) $98 Call @ (-$5.95)
Sold to Open (-50) BABA Jan5(30th) $104 Call @ (+$3.10)
Net Debit (-$2.85) (n)

Adjustment #3 (Thurs, 01.22.2015):
Sold to Open (-50) BABA Jan4(23rd) $104 Call @ (+$0.67)
Net Credit (+$0.67) (y)

Net-Net: (-$3.96) :whistling :!:

Current Positions:
Long (+50) BABA Jan4(23rd) $99 Call @ (-$1.78)
Short (-50) BABA Jan4(23rd) $104 Call @ (+$0.67)

Short (-50) BABA Jan5(30th) $104 Call @ (+$3.10)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$3.48)
Adjusted Cost Basis: (-$7.44) = NOTE: Higher than Initial Cost Basis! :!: :whistling

Plan:
1. HOLD positions for now.
2. If BABA > $104 on Friday Expiry - the front weekly Jan4(23rd) $99C-$104C spread will result in an additional Net Credit (+$5.00) to help reduce the Adjusted Cost Basis. :clap:
3. Extract extrinsic time value of the Short (-50) Jan5(30th) $104 Call options.
4. Look to Adjust if can capture > 75% of the extrinsic time value of (3) above.
5. Look to Adjust if BABA > $107.

Let's watch and see where BABA will close on Expiry Friday tomorrow!

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA - $88.37 - poor EPS results

BABA $103.99

Current Positions:
Long (+50) BABA Jan4(23rd) $99 Call @ (-$1.78)
Short (-50) BABA Jan4(23rd) $104 Call @ (+$0.67)

Short (-50) BABA Jan5(30th) $104 Call @ (+$3.10)

Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$3.48)
Adjusted Cost Basis: (-$7.44) = NOTE: Higher than Initial Cost Basis! :!: :whistling

BABA $88.37

Hi, T2W traders,

BABA opened gapped down on weaker than expected eps results. This busted campaign is now purely on defensive mode and will look to be exited at break-even asap. :!: (n)

On Fri, 01.23.2015 - BABA closed at $103.11. Here are the Adjustments from Fri's Expiry:

Expiry Adjustments (Fri 01.23.2015): expiry at $103.11
Long (+50) BABA Jan4(23rd) $99 Call = expired In the Money
Short (-50) BABA Jan4(23rd) $104 Call = expired Out of the Money
Net (+$4.11) (y)

Current Positions:
Short (-50) BABA Jan5(30th) $104 Call @ (+$3.10)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$7.44)
Adjusted Cost Basis: (-$3.33)

Plan:
1. Look to exit BABA campaign break-even or better asap = defensive mode.
2. Continue to sell Extrinsic Time Value of front weekly At the Money Calls until break-even achieved.
3. Look to roll down & in - the Long Mar(21st) $115 Call if/when Key Support is confirmed.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA - $90.38 - Time to get more income - Adj Cost Basis (-$2.41)

Current Positions:
Short (-50) BABA Jan5(30th) $104 Call @ (+$3.10)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$7.44)
Adjusted Cost Basis: (-$3.33)

BABA $90.38

Hi, T2W traders,

Chart & Position Analysis:

BABA closed at $89.08 on Fri, 01.30.2015. The front wkly Short Jan5(30th) $104 Call expired Out of the Money.

The Daily, Wkly, Monthly time frames all continue to indicate bearish trend and momentum bias. It is time to capture additional extrinsic time value income once again this week. :clap:

Adjustment on Fri Expiry:

Short (-50) Jan5(30th) $104 Call - Expired Out of the Money (y)

Adjustment 1 (today):

Sold to Open (-50) Feb2(13th) $92 Call @ (+$0.91)
Net Credit (+$0.91)

Positions:

Current Positions:
Short (-50) BABA Feb2(13th) $92 Call @ (+$0.91)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$3.33)
Adjusted Cost Basis: (-$2.41) :cool:

Plan:
1. Look to exit BABA campaign break-even or better asap = defensive mode.
2. Continue to sell Extrinsic Time Value of front weekly At the Money Calls until break-even achieved.
3. Look to roll down & in - the Long Mar(21st) $115 Call if/when Key Support is confirmed.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA $86.00 - Adjusted to Get Income - Adj Cost Basis (-$1.73)

Current Positions:
Short (-50) BABA Feb2(13th) $92 Call @ (+$0.91)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$3.33)
Adjusted Cost Basis: (-$2.41) :cool:

BABA $86.00

Hi, traders,

Chart & Position Analysis:
BABA closed at $86 today on 02.09.2015. The front wkly Short Feb2(13th) $92 Call has decayed down to only $0.05x$0.06. With still 4 trading days to go - this extended campaign was Adjusted today. The Short Feb2(13th) $92 Call was rolled down to the Feb2(13th) $87 Call for more income.

The Daily, Wkly, Monthly time frames all continue to indicate bearish trend and momentum bias.

Adjustment 1 (today):
Sold to Open (-50) Feb2(13th) $87 Call @ (+$0.74)
Bought to Close (+50) BABA Feb2(13th) $92 Call @ (-$0.06)

Net Credit: (+$0.68) :clap:

Current Positions:
Short (-50) BABA Feb2(13th) $87 Call @ (+$0.74)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$2.41)
Adjusted Cost Basis: (-$1.73) :cool:

Plan:
1. Look to exit BABA campaign break-even or better asap = defensive mode.
2. Continue to sell Extrinsic Time Value of front weekly At the Money Calls until break-even achieved.
3. Look to roll down & in - the Long Mar(21st) $115 Call if/when Key Support is confirmed. Note that there is Bullish Divergence of Price vs MACD on the M15, M65, time frames. :idea:

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
BABA $86.64 - Adjs Made Using Diag Rolls - Adj Cost Basis (-$1.45)

Current Positions:
Short (-50) BABA Feb2(13th) $87 Call @ (+$0.74)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$2.41)
Adjusted Cost Basis: (-$1.73)

BABA $86.64 closing on Fri, 2/20/2015

Adjs Made: prev Fri, 2/13/2015
Bought to Close (+50) BABA Feb2(13th) $87 Call @ (-$2.04)
Sold to Open (-50) BABA Mar1(6th) $89 Call @ (+$2.18)
Net Credit (+$0.14)

Adjs Made: Fri, 2/20/2015
Bought to Close (+50) BABA Mar1(6th) $89 Call @ (-$0.75)
Sold to Open (-50) BABA Feb4(27th) $87 Call @ (+$0.89)
Net Credit (+$0.14)

Current Positions:
Short (-50) BABA Feb4(27th) $87 Call @ (+$0.89)
Long (+50) BABA Mar(21st) $115 Call @ (-$6.70)

Initial Cost Basis: (-$6.70) initiated 12/17/2014 when BABA $108.94.
Previous Cost Basis: (-$1.73)
Adjusted Cost Basis: (-$1.45)

Plan:
1. HOLD positions.
2. Extract extrinsic time value from the Short Feb4(27th) $87 Call options.
3. Look to Adj if BABA develops Key Support.

Regards,

WklyOptions
 
 
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