ZAGG TRADE:
Trade: I sold the ZAGG March 9-8 Put Spread and sold the March 11-12 Call Spread for $.50 total.
Profitable: I make money on this trade if ZAGG Closes between $8.50-$11.50 by March 16, 2012.
Break-even: I break-even on this trade if ZAGG Closes at $8.50 or $11.50 by March 16, 2012.
Unprofitable: This trade is unprofitable if ZAGG Closes under $8.50 or above $11.50 by March 16, 2012. The most I can lose on this trade is the amount this spread can be worth $1 minus the amount I sold it for $.50 for a total of $.50.
UPDATE 2.27.2012 The earnings are after the close today and I put this order in the “Spread Book” for $.50 meaning I am willing to trade it for $.50, but I have NOT got filled yet.
UPDATE 2.28.2012 I actually did not get filled on this spread and I am mad because with volatility getting crushed this spread os worth $.35. Oh well, on to the next trade.
UPDATE 2.29.2012 This spread is now worth $.20 making me upset that I did not get filled. Oh well, on to the next trade, as LONG as my trading ideas are right, gives me a good feeling.
UPDATE 3.2.2012 This spread is worth is still worth $.20
SINA TRADE:
Trade: I bought the SINA March 55-67.5 Strangle and sold the March weekly 55-67.5 Strangle for $1.75 total.
Profitable: I make money on this trade if SINA closes between $55-$67.50 and the March volatility does not get crushed too bad.
Break-even: I break-even on this trade if SINA Stangle Swap is worth $1.75.
Unprofitable: This trade is unprofitable if SINA Strangle Swap is worth less than $1.75. This is a very hard trade to explain, but I basically want to the front month Strangle to be worthless and have Ma
rch volatility not get crushed, so the March strangle is worth more than $1.75.
UPDATE 2.27.2012 I got a partial fill in this stock on Friday at $1.75 and now the spread is worth $1.95. I have a $1.80 bid in the “Spread Book” and will increase my position before earnings after the close.
UPDATE 2.28.2012 Even with stock rallying much more than expected, this spread is still worth $1.85 good for a small winner. It now has a short delta, so I will leave this trade until Friday.
UPDATE 2.29.2012 With the stock selling off today, this spread is now worth $2.20. I am offering 40% of my position at $2.30, 40% at $2.50 and 20% at $2.70 trying to lock some profits in.
UPDATE 3.2.2012 The stock market looks weak, but SINA is raging higher, making this spread less valuable. This spread is now worth $1.00, but I am glad that I took partial profits. I will be left with LONG the March 67.5 Puts for $1, so I will leave this position on and hope that SINA sells off within the next 2 weeks.
LOW TRADE:
Trade: I sold the LOW March 28-29 Call Spread and 26-25 Put Spread for $.35 total.
Profitable: I make money on this trade if LOW Closes between $25.65-$28.35 by March 16, 2012.
Break-even: I break-even on this trade if LOW Closes at $25.65 or $28.35 by March 16, 2012.
Unprofitable: This trade is unprofitable if LOW Closes under $25.65 or above $28.35 by March 16, 2012. The most I can lose on this trade is the amount this spread can be worth $1 minus the amount I sold it for $.35 for a total of $.65.
UPDATE 2.27.2012 I was NOT filled on this position on Friday and even with earnings out, this spread is worth about $.34. I will not put an order in the “Spread Book,” because I only wanted to trade earnings and moving on to the next trade.
UPDATE 2.29.2012 This spread is worth $.38, but I do not have to worry about it, because I never was filled on the trade.
UPDATE 3.2.2012 This spread is still worth $.38.