Don't like these markets as they are over extended but need some ROI. This cheap(er) stock has a higher beta and growth potential. A L.Navellier rec and some rumors of takeover bid seem to give this name a lift. FNSR,AAOI, and others have also been rallying of late with larger pullbacks recently. I am not much of a chart person and prefer cost basis reduction through options strategies
Comment:
So here we are back @ 8 again.....not surprised but was hoping it might hold the trend line. Sold 4 puts out til June monthly at the 8 strike for .65 with earnings approaching this would seem to be ideal for the way I like to trade anyways. Other names in the same sector have also been volatile and OCLR has held up relatively well. I sold these relatively early in the sell off which is a perfect example of why it is impossible to try to time the market and also why if you are feeling bullish enough to buy shares outright.....you are better off selling a put and once you have reduced your cost basis you feel less pressure. It will also keep your more aggressive tendencies in check....trading with more thought on how to defend/repair this when it goes wrong
Comment:
OCLR was down yuuuge this morning.....not sure what was going on but dropped a dollar on the open and almost went in the 6's. I bought back my 8 puts and rolled to Oct. for 1.65 only a .45 net gain. I tried to buy some calls out til Jan but stock had mostly recovered by that time and options market makers didn't want to sell me any based on the current price levels. Strange almost like they know what the order flow is when a 7 dollar stock drops a buck ~15% and there is no market at that price?
Comment:
Sold out on 6/6 and will look to reestablish short puts if the selling pressure continues next week....? Has been one of my better trades this year as my timing in this stock has been lucky. I have not been so fortunate in many other stocks. :)
Comment:
Here we are a few days later.......in the event that this is another BTFD I sold puts again @ 9 with 39 DTE in OCLR for .65 total of 3. Very little bullish delta in a name I am comfortable with (for now). Will add another 3 on a further pullback and add calls IF this is just some market rotation......if we sell off hard, I will look to roll the short puts and do everything I can to avoid being put the stock and then average down if we get to the 5 level.....maybe not even then
Comment:
PS. I will get more aggressive in this name if the market starts to bounce
Comment:
Bought to close 3 puts @ 9 strike today to raise cash for another trade. Bought them back for .45, not quite 30%....and not the normal 50% target. Will see what I want to do here if the market gives me a chance and pulls back again.
Comment:
Today I bought 2 Jan18 calls @ 10 strike for $1.80 each. I want the stock to pop up a little and sell calls against them, or diagonalize them. I did not feel bullish enough to buy the stock again and sell covered calls but don't want to keep missing out on this greater fool market.
Comment:
OCLR down some today (7%) and reports earnings after the close. Implied Volatility Rank is 53% and the 9 strike with 44 days to expiration fetches .71 per contract.......so I sold three puts in a different account than the one I have long calls in. I should have sold calls against those longs but was hoping both price and vol would run up into earnings, I woulda, shoulda, coulda Oh Well maybe I will do better next time.
Comment:
Closed all short puts out for .45 this morning. Earnings trades closed win/lose/draw mostly but would have held this one probably since I have been trading it so much this year.
Comment:
So the 2 calls I bought for 1.80 each are now worth .55.....The fund I was watching that was "churning" this name has bailed. I would look to close these now but with only 55 cents left? I feel like might as well just hold til the bitter end, with this crazy bull market who knows? I do feel fortunate to have been profitable with this position and not to have gotten stuck holding stock and just have 2 worthless calls. As far as I am concerned this position is closed and if I had been less greedy and sold calls against the ones I bought I would be better off.