Close Off HOG
Plus, Close Off IOC
PLAY: Sell your HOG February 24 Puts (JOZ NH) at market, good for the day.
PLAY: Sell your IOC February 70 Puts (IOC NN) at market, good for the day.
Dear Bottarelli Research Member,
Good morning. Let’s use some opening weakness to close off our Harley Davidson (HOG – NYSE) earnings play. If you recall, we entered the HOG February 25 Calls (HOG BR) and HOG February 24 Puts (JOZ NH) for $2.10. Then, we used weak earnings to sell our calls for $0.75 and held our puts. As I write, these calls have now ticked up to a high of $1.50. For an earnings position that did not move in the manner that we wanted, this is a positive development. Therefore, let’s close this position off with no harm done and move on to the next opportunity.
PLAY: Sell your HOG February 24 Puts (JOZ NH) at market, good for the day.
In other news, we’re holding GMCR February 85 Calls (QGM BQ) for an average entry price of $3.80. Leading up to their earnings (after today’s close), I’m expecting to see a run-up. If not, then we just might decide to hold our calls going into earnings. More to come.
We also have a basket of SNDK February 31 Calls (SWF BF) and SNDK February 28 Puts (SWF NB) that we entered for $2.55 leading into SNDK’s earnings on Thursday. Hold.
We’re also looking for a recovery on our ICE February 105 Calls (ICE BA), after witnessing an unexplainable sell-off yesterday. I still feel we want to remain positioned to the upside on ICE, as the positive triggers are plentiful. Hold.
Then we have our MOS February 60 Calls (MOS BL) and upside hedge in the SSO February 38 Calls (SUC BL). Maintain both positions.
And finally, we have our IOC February 70 Puts (IOC NN). As you know, we entered these puts for $4.40, only to see IOC release some bogus oil news which pushed the stock $7.00 higher. We stood firm to our convictions, and over the following days, IOC gave back all of these gains. Our puts now trade for $3.60, which is down from our original entry price, but a large recovery from where they were trading at a week ago. Let’s use this down-move to take a small hit, which is a moral victory considering the complications with this position. Sell.
PLAY: Sell your IOC February 70 Puts (IOC NN) at market, good for the day.
And as always…
Lock and load!
Sincerely,
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