So I watch CNBC, probably too much. but I do like to catch Fast Money both at the noon hour and after the market closes. I like it because of the diversity of traders that appear, some I trust and some I don’t.
I like Steve Grasso. I particularly like his predictions in the S&P Cash Futures and his lines of resistance and support. One of the names he has been touting for at least the last few months is AMZN. I think I remember him saying it was one of his favorites. So I was a little shocked to hear him say today that for the whole time he has recommended it, he has never bought a share of the stock. Can’t get too pissed at him about that, the stock is at all time highs and he hasn’t profited a nickle. But I have, I had three calendar bull call spreads on using the February and April 200 calls as my stock replacement.
Today Grasso said he thinks the stock will pull back after earnings tomorrow, and I believe him. I took off three of those spreads today and left one on. I bought an April 775-750 bear put spread to protect the profits in that one. But I may just pull the trigger and close that one out tomorrow as well. We shall see. My other choice is to sell the call and make about a kilobuck on it and let ride the Feb16 265 call that I sold for about a kilobuck and is now trading at about $1.6K. If I do that I may buy a 280 call for a little insurance, but really the conservative move is to just close it out and see if I make a few $$ with my put spread. Hell I even sold the 10 measly shares of the underlying I had in the name, that I had kept mostly to just have the price on my screen.
Could be wrong here, but it never hurts to book a profit . . . .
PCLN pulled back a bit today. It was an excellent opportunity to square things up a bit. Most of my call spreads are now pretty deep in the money but was able to structure things so that I have about three of them with all of the short call positions being around 710 or so with lots of implied volatility that should dissipate as we get close to Feb 16 expiration.
GOOG is still my favorite name at the moment. Acting really well and earnings are in the rear view mirror.
CRM jumped up today on the news that there is a 4/1 stock split coming. Did you see that Mr AAPL? Did you see what CRM did, just with that mathematical accounting trick?
At least APPL did stabilize today. Carter Worth on Fast Money seems to feel pretty comfortable with it getting back to 500. His rec: short the S&P and go long AAPL. Truthfully, that’s my plan, at least to a certain extent. Bought 5 bear put spreads in the SPY today, the Mar 145/140, for about .65 each. Pretty cheap insurance, if you ask me . . .