Thursday, March 29, 2012

$FOSL $817.33 trade

I was short $FOSL at 135 via Apr credit call spread.
2/15 sold Apr 130/135 credit call spread for $.67. P was 117. did this 10 times & collected 654.46
3/13 rolled my short into april credit call spread and higher (out and up) to 135/140 for $.45cr. P was 129.48 for this i collected 428.91
this morning i read that it will be added to the S&P so popped to 136. Usually this is a preview of where the stock likely to go once all the S&P trackers add FOSL into their line up.
So i decided to mess with a winning trade.
3/29: I sprawled my 135/40 position into an April iron condor 125/20 - 140/45 for .07 cr. $33.39
So as of now: i have collected $817.33.
Ideally, i need the stock to stay between 125 & 140. My logic is that it now has a inherant bid under it but not enough momentum to reach 140.
Theoretical stats:
71% chance fosl WILL NOT reach my short put leg (125 Delta .24)
75% chance fosl WILL NOT reach my short call leg (140 Delta .24)
Btw, if you like these posts spread the word+ folo @racernic. Also peruse rest of my posts including the sides to help finance the java (if you know what I mean ;-). I do these post for free and have no subscription pitches etc.



As with any trade there are risks but in this case the I am very comfortable with the dollars at risk. I always try to know and manage my risk; I ask 'what will I lose if the crap hit the fan in the worst possible way.' If I know the answer to this and am ok with it then I should be ok.

THIS IS NOT A RECOMMENDATION OF ANY KIND. I ONLY INVEST MONEY I CAN AFFORD TO LOSE.

$AAPL $AMZN $bidu $SPX $NDX $RUT $C $GS $wynn $SPY $GOOG