Updated:

Straddle

APOL 43 JUL 11 Call at 4.45
APOL 43 JUL 11 Put at .15
Net: $4.60
You could have still kept the Put side open has it does expire in JUL, but the net profit was good.


APOL Earning Straddle as been placed a day early, due the earnings calendar we looked at stated it was after the close of today. No matter, good entry price of this this straddle.

APOL Earnings release 6/30/2011 (Market close on 4th of July Holiday)
Market Expects: $1.33

APOL 43 JUL 11 Call at 1.95 - Delta .43
APOL 43 JUL 11 Put at 1.89 - Delta .57
Cost: 3.84

The total risk of the trade is $3.84. This is 100% premium risk. That means the stock must move $3.84 either way for us to breakeven. So if the stock stays within a range of 44.95 to 41.11, we lose!

Nike Inc (NKE.N) reported fourth-quarter earnings that beat expectations late Monday, and orders suggested robust strength for the future.


Our Strangle was spot on with NKE

NKE 80 JUL 11 Call at 3.45 - Delta .58
NKE 82.50 JUL 11 Put at 3.45 - Delta . 57
Cost: $6.90

Calls were inflated to 7.55
Puts deflated to .55

Our Straddle was spot on with NKE

NKE 80 JUL 11 Call at 3.45 - Delta .58
NKE 80 JUL 11 Put at 2.26 - Delta .42
Cost: $5.71

Calls were inflated to 7.55
Puts deflated to .26

These calls could have been sold and the puts would remain, could be left to expire worthless. But, I would have taken the calls off and ran with the profit.

APOL maybe a second runner for us to play. Caution with this one is that the earnings are reported after the bell on Firday. Markets will be closed for the 4th of July Weekend......

Looks like some downward rally still left in this market. Will have to see how the market ASIA, and London open tonight. Also, week is Quarter End Window Dressing for the Institutional Investor, this not a typical weekend.

NKE Earnings are scheduled for June 27, 2011; after the market close. The market is expecting $1.16 in earnings.

Strangle would possible work for us here, take a look at Friday's Options

NKE 80 JUL 11 Call at $3.45 - Delta .58
NKE 82.50 JUL 11 Put at $3.45 - Delta .57
Cost: $6.90

The total risk of the trade is $6.90. This is 100% premium risk. That means the stock must move $6.90 either way for you just to break even. So if the stock stays within a range of $83.45 to $79.05, you lose!

Straddle would possible work for us here, take a look at Friday's Options

NKE 80 JUL 11 Call at $3.45 - Delta .58
NKE 80 JUL 11 Put at $2.26 - Delta .42
Cost: $5.71

The total risk of the trade is $5.71. This is 100% premium risk. That means the stock must move $5.71 either way for you just to break even. So if the stock stays within a range of $83.45 to $77.74, you lose!

Remember: The strangle or straddle would require that the stock move more to make the position profitable, but costs less to establish. If you get a small or no move before expiration, you're out of luck on the straddle or strangle.

Earnings: 6/22

$FDX 90 JUL $CALL at 2.09 + $FDX 87.50 JUL $PUT at 1.93 = Cost $4.02
Stock Closed 89.13

$BBBY 55 JUL $CALL at 1.37 + $BBBY 50 JUL $PUT at .62 = Cost $1.99.
Stock Closed 54.06

WAG Post Earnings

$WAG 46 Jul 11 C at 1.08
$WAG 45 Jul 11 P at 1.38
Cost 2.46

$WAG 47 Jul 11 C at 1.38
$WAG 45 Jul 11 P at .69
Cost 2.07


CCL Post Earnings

$CCL 37 Jul 11 C at .90
$CCL 35 Jul 11 P at 1.15
Cost 2.05

WAG is scheduled to release earnings on Monday Before the Open at 7:30 a.m. ET. Market Expect $0.62; look at the following option straddle.

WAG 47.00 JUL 11 C $0.56

WAG 41.00 JUL 11 P $0.46

Needs a $1.02 move

Or

WAG 46.00 JUL 11 C $0.87

WAG 43.00 JUL 11 P $0.88

Needs a $1.75 move

The above pricing is Friday's close. Last earnings appeared to have a 5% gap, will see.

NOTEABLE UPDATE: CRASH AND BURN!!!

Lennar Corporation - Market Expects $0.04 per share, this corporation appears to be announcing on June 23, 2011 BMO.

Look at the following Option Straddle:

LEN July 19 Call .23
LEN July 16 Put .29

.52 cent needs to be created to cover this trade. With housing and low financing this could help this company.

Earnings Reports coming up this week.

Earnings after the market for Monday.

NKE 85.00 JLY 16, 2011 Call - 1.10
NKE 80.00 JLY 16, 2011 Put - 2.30
Required amount: 3.40 per contract

We purchased a AAPL 330 JUN Call/Put straddle for 6 dollars, first leg was completed on the downside then had to repurchased for the next leg down, will be out of this trade no later than tomorrow. Jobs Number should push us down for the next leg, if not Calls will be InPlay for the morning run.

Also, AAPL 325 JUN P 1.83 to over 2.20 per contract, than market turned higher...

AAPL is all tankage on Friday with the AAPL 325 Jun 18, 2011; put were opened at 0.07 and made a high of .51; that was a nice pocket change if you were able grab some and hold the chopfest.... But as we know the prems where gone at 2:30 p.m. ET.

AAPL was returning to its old boring self and ripped one way and ripped the other way for....then started the sideways channel, you see on this 15 minute chart. One would have to straddle in the beginning of the day, be out before the 11:00 a.m. ET time. The Beige Book came and went with some movement and then settled back in the the groove.

Initital Jobless Claims are on Thursday and then nunbers will be released on Friday.

BIDU produced another Green arrow and this was very nice trade. BIDU 135 Call BIDU 120 Put Weekly 1.60 need to be produced for the is to be a profitable trade and it did just that and more. Out 1.64.

BIDU just fell out of the trading range of an epic portion. They appear to be assocaited by the other China companies. Weekly and Monthly options were pretty sweet with action.

We believe at some point this week we should see these levels in the market, as you can see is a mid day snap shot for the futures market, will have to revist after 3:00PM Eastern Standard Time.

BIDU 135 Weekly Put .30 - over 2.00 per share. The a great mover in the afternoon trading session, as you can see you would have held through some churning in early trading session.

BIDU is putting in some heavy lifting now. It only produced a 5 point gain, after a 2 point loss... Job numbers are in the morning at 5:30AM Eastern Standard Time. We know BIDU has a two dollar swing intra-day. It either gaps and fills or it just keeps on truckin in the current gaps direction.