OPX Play

Fujisan here.

Mole asked me to put together a quick post for OPX play.  So I will make it nice and quick.  Please note that the below trades are all high risk/high return play so be prepared to lose the entire premium if the trades go against you.

If the underlying stocks pass through the short strike prices, you could do one of the followings:

1. close the position, or
2. add another position (butterfly, condor), or
3. buy back short options (most expensive – not recommended)

GOOG

GOOG has already rolled over this week and I have started putting together OTM condor and skipped strike butterfly (Modi-fly).

Here is my GOOG OPX target.

Here is my OTM condor with strike prices of 400/410/420/430.  This condor is a combination of a debit put spread of 420/430 and a credit put spread of 400/410.

Here is a Modifly (please don’t google this – someone came up with this wording and I’m just using it).  Please note that the ratio between a credit and a debit spread is 2 to 1 (i.e., a credit put spread of 400/410 should have twice as many contracts as a debit put spread of 410/430).

AAPL

AAPL also started to rollover this week and here is my OPX target.

Here is my June AAPL 130/135/140 butterfly.

GS

Keirsten pointed out that GS has broken out of the trend line – however, I still see a vertical support line not broken as of yet, so I would probably wait until the support is broken before I put this on.

Here is my GS June 130/135/140 butterfly.  Depending upon the way it breaks the current support level, I might put on 125/130/135 butterfly instead.

Here is my GS June 125/130/135/140 condor.  This is more expensive than butterfly but has a wider range.  This should be able to capture further downside potential.  Again, if GS is already hitting much lower than 140, I might as well go with 125/130/135 butterfly.

RIMM

Annamall picked up RIMM and I decided to join the party.  Here is my OPX target.

Here is my RIMM June 85/90/95 butterfly.

Here is my RIMM June 85/90/95/100 condor if you like to have a wider range.  RIMM is already in an overbought condition and it’s hard to imagine that it could break above the current trendline, but if you think that RIMM has a surprise upside and planning to hold on to your position through earnings, this one is for you.

That’s all for now.  I am probably going to skip my weekend post as this is pretty much all I have for this week.

Have a good weekend, everyone!

Fujisan