Current Strategy: long calls
Trade entry date: Mar 30
Price at trade entry: $37.89
Price at this post: $25.36

Current Position:[private_monthly]
Long 4 TBT Sep11 40 Calls at an effective cost basis of $1.49 per contract
[/private_monthly]

Proposed New Trade: calendar call spread

Adjustment: Well, we were clearly early on this trade. However, with
interest rates set to stabilize now through at least mid 2013, we’re
presented with a new trading opportunity on
[private_monthly]TBT[/private_monthly]. We’re going leave our long Sep11
40 calls alone but leg into a new calendar call spread on it here.

New Trade Details:
BTO 4 TBT Mar12 27 calls
STO -4 TBT Sep11 27 calls
for a net debit of $1.86 per contract

Max Risk: $744
Suggested Stop: @ $22 & $34.60
Profit Range: $24.18 to $30.90 (Sep11 exp)
Max Profit: $488 or 65% @ $26 (Sep11 exp)

Option Strategy: calendar call spread w/ protective call
Trade Entry date: Aug 10
Price at trade post: $61.28
Price at this post: 63.69

Reasoning: Re-running the risk graph, it looks like we’re actually
already near the max profit level for this trade. So, we’re going to
close the trade here for around a 17% to 19% profit.

Closing Trade Details:

STC 2 JNJ Jan13 60 Calls
BTC 2 JNJ Sep11 60 Calls
for a net credit of $3.00 per contract

then,
STC 2 JNJ Jan12 65 Calls
for a credit of $2.49 per contract

Max Risk: $928
Max Reward: unlimited
Profit Range: $54 +
Profit upon fill: $178 or 19%

Option Strategy: calendar call spread w/ protective call
Trade entry date: Aug 15th
Price at trade entry: $45.87
Price at this post: $45

Current Position:
[private_monthly]

Long 2 AXP Jan12 45 Calls
Long 2 AXP Jan12 55 Calls
for an effective cost of $4.23 per contract
[/private_monthly]

Adjustment / New Trade: We’re going to write the AugWk4 45 strike calls.

For those of you not currently in this trade, this is also a good entry
point. See Trade Entry Details below

Open Trade Order:
STO 2 AXP AugWk4 (exp 8/26) Calls
for a credit of $0.95 per contract

New Trade Details:
[private_monthly]
BTO 2 AXP Jan12 45 Calls
STO 2 AXP AugWk4 (exp 8/26) Calls
BTO 2 AXP Jan12 55 Calls
for a net debit of $4.45 per contract

[/private_monthly]

Max Risk: $990
Max Reward: $167 or 16.8% by Aug 26th
Profit Range: $43.80 +

Max Risk: $910
Max Reward: $356 or 39% by Sep 2011 expiration
Profit Range: $31.30 +
Max Reward Price: $34 at Sep 2011 expiration

Reasoning: This is a bullish play on Oil. We’re going to take advantage
of the recent pullback in oil using [private_monthly]
USO[/private_monthly] as it tracks oil nicely and has relatively low
volatility. This trade can yield us a very healthy gain if the stock
closes at or above $34 by Sep expiration. If it closes under $34 by Sep
16th, we’ll have taken in an uncalled return of 25% and will then look
to sell Oct calls against the position. We also like that our break even
on this trade 2 points lower than it’s current price.

Trade Details:
[private_monthly]

BTO 2 USO Mar12 30 Calls
STO -2 USO Sep11 34 Calls
for a net debit of $4.55 per contract

Requirements
Cost/Proceeds $910.00
Option Requirement $0.00
Total Requirements $910.00
Estimated Commission $12.95

[/private_monthly]

Reasoning: We’ve going to take advantage of the volatility surrounding
[private_monthly]PCLN’s [/private_monthly] scheduled earnings release
this Thursday after market close. This trade has a 78% probability of
success and reaches full profit potential this Friday. To reach full
profitability, we either need the stock trading at or under $115 or at
or above $125 by market close this Friday. The spread between the bid /
ask on this trade is huge so there’s a good chance we won’t get filled
on this one. We’re using a day limit order.

Max Risk: $920
Max Reward: $80 or 8.70% by Aug 5th
Profit Range: $0 – $515 & $525 +

Trade Details:[private_monthly]

STO -2 PCLN AugWk1 515 Puts
BTO 4 PCLN AugWk1 520 Puts
STO -2 PCLN AugWk1 525 Puts
for a net credit of $0.40 per contract (options expire 7/5, day order,
limit order)

Requirements
Cost/Proceeds ($80.00)
Option Requirement $1,000.00
Total Requirements $920.00
Estimated Commission $12.95

[/private_monthly]

Reasoning: This trade has a 89% probability of success and reaches full
profit potential this Friday. We’re using a day limit order.

Max Risk: $940
Max Reward: $60 or 6.38% by Jun 24th
Profit Range: $1219.70
Max Profit at: $1220 +

Trade Details:[private_monthly]
STO -2 SPX AugWk1 1220 Puts
BTO 2 SPX AugWk1 1215 Puts
for a net credit of $0.30 per contract (day order, limit order)

Requirements

Cost/Proceeds ($60.00)
Option Requirement $1,000.00
Total Requirements $940.00
Estimated Commission $12.95

[/private_monthly]

Reasoning: We’ve been looking for a play on Natural Gas and
believe we’ve found a good one in [private_monthly]LNG
[/private_monthly]. We’re using a covered strangle which is essentially
a covered call + a naked put. The result is a breakeven point about 11%
lower than the stocks current price and a trade probability of about
75%. IMPORTANT: because we’re also selling a put, we’ll be obligated to
purchase another 100 shares at $8 per share should the stock be trading
under that level by Aug expiration. Of course, the chance that we’ll
have to buy the shares at $8 is currently just 25%.

Max Risk:
$1669
Max Reward: $131 or 7.8% by Aug 19th
Profit Range: $8.69 +
Max
Profit at: $10 +

Trade Details:
[private_monthly]

BTO 100 shares of
LNG
STO -1 LNG Aug11 10 Call
for a net debit of $8.95 per share (GTC,
limit)

then,
STO -1 LNG Aug11 8 Put
for a net credit of $0.25 per
contract

Requirements:

Cost/Proceeds $869
Option Requirement
$800.00
Total Requirements $1,669
Estimated Commission $35.85

[/private_monthly]

Links:

Entering Option Strategy: diagonal call spread
Trade entry date: Mar 24
Price at trade entry: $30.66
Price at this post: $20.32

Current Position:
[private_monthly]
Long 1 VXX Jan12 30 Call
[/private_monthly]

Adjustment: With the [private_monthly]VXX[/private_monthly] hitting an
all time low today, we’re going to take the opportunity to roll our 30
strike call into a 20 strike. This will enable us to start selling near
term calls for generating weekly / monthly income from the position.

Trade Details:
[private_monthly]

STC 1 VXX Jan12 30 Call
BTO 1 VXX Jan12 20 Call
for a net debit of $2.25 per contract
[/private_monthly]

Max Risk: $844 (adjusted up from $619)
Max Reward: unlimited
Profit Range: $28.44 +

Entering Option Strategy: diagonal call spread
Trade entry date: Mar 24
Price at trade entry: $30.66
Price at this post: $20.32

Current Position:
[private_monthly]
Long 1 VXX Jan12 30 Call
[/private_monthly]

Adjustment: With the [private_monthly]VXX[/private_monthly] hitting an
all time low today, we’re going to take the opportunity to roll our 30
strike call into a 20 strike. This will enable us to start selling near
term calls for generating weekly / monthly income from the position.

Trade Details:
[private_monthly]

STC 1 VXX Jan12 30 Call
BTO 1 VXX Jan12 20 Call
for a net debit of $2.25 per contract
[/private_monthly]

Max Risk: $844 (adjusted up from $619)
Max Reward: unlimited
Profit Range: $28.44 +

Price at trade entry: $59.54
Prece at this adjustment: $55.70

Adjustment: This trade has gone a bit against us and we want to mitigate
our risk on this trade. We’re going to roll the short Jun 65 calls into
the Jul 60 calls by buying back the Jun 65′s and simultaneously selling
the Jul 60 calls. With most of the premium gone from the Jun 65 calls,
we’re booking a 12% uncalled return. Our cost basis on the trade is
reduced from $850 down to $664 with this adjustment. If
[private_monthly]BTU [/private_monthly] trades substantially lower from
its current level in the next few days / weeks, we’ll buy back the short
July 60 calls for a quick profit. If the stock turns around and looks to
head higher than 60 by July expiration, we’ll add some protective calls.

Max Risk: $664 (originally $850)
Max Reward: $74 or 11% by Jul 2011 expiration
Profit Range: $59.17 – $60.98
Max Profit at: $60 by Jul 2011 expiration
Uncalled Return: 22%

Trade Details:
[private_monthly]

BTC -2 BTU Jun11 65 Calls
STO -2 BTU Jul11 60 Calls
for a net credit of $0.94 per contract

[/private_monthly]