Monday, April 4, 2011

DIS 43 May/July Call Calendar

This is a new position initiated today. Just following an options advisory service on this one. The rationale is that the stock has been rangebound between $40-$44 the last few months. I like calendars in this environment so I'm willing to take this trade based on their rec.
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8 comments:

  1. sandeepApril 9, 2011 at 10:00 AM

    DIS has trended lower in the past week though the calendar has stayed about the same. Earnings are before May expiration, and DIS was trading around $39 before gapping up on last earnings. I can't imagine Tokyo Disney breaking any records this quarter. I will very likely add the 40 Put calendar to my current position next week to provide downside protection.

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  2. sandeepApril 11, 2011 at 6:47 AM

    Just added equal number of the DIS 40 May/July put calendars for $0.63.

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  3. sandeepApril 11, 2011 at 7:16 PM

    Current DIS position, double calendar. The advisory service I am following on this trade did not add the put calendar, that is of my own doing.

    http://screencast.com/t/Ui2QebPa

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  4. sandeepMay 3, 2011 at 6:56 PM

    http://screencast.com/t/gt6lMyTYfc9

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  5. sandeepMay 6, 2011 at 4:11 PM

    Made an adjustment today - sold the 40 Put calendar for an average of 53 cents which works out to a 10 cent loss on those positions. Decided I don't like that strike price, I think it is too far from the current price and the expected move after earnings is only about $1. It's a bit of a gamble as it makes my position much more positive delta now. Decided to take that risk because the stock has been pretty strong during the recent downturn, so I'm placing my bets on decent earnings and a stable or higher stock price after they are announced.

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  6. sandeepMay 11, 2011 at 6:28 PM

    Selling the 40 put calendar has turned out to be a very bad move. DIS earnings did disappoint, and the move down was more than expected. This has hurt my 43 and 45 calendars and turned my position into a loser at the moment. At this point I will just hold, and probably roll into the June/July calendar sometime next week.

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  7. sandeepMay 12, 2011 at 6:54 AM

    Trying to do a little damage control - just bought teh May/July 41 Put calendar for 97 cents. On it's own breakevens for this are $40.16 on the downside, $41.89 on the upside.

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  8. sandeepMay 12, 2011 at 7:22 AM

    More adjustments - doubled my 41 put calendar, bought some stock. If anyone want to follow this trade I can do a video, otherwise I'll just leave it at this.

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