[Options] Monthly Positions Review -- May
As we head towards June expiration, we only have two open positions remaining with June options. We had two delta neutral income trades and one bull call spread that hit their profit targets in May, we took risk off the table in a couple of winning positions, and we booked losses on three other trades.
Positions with June options that need monitoring:
$EVRI June 20 Calls: We entered this position back in December and it took its sweet time. Now it's finally working. But we'll have to be vigilant with this one. It's currently trading between $21-22 per share. For now, if I see a close below $20 (our strike price), that'll be my signal to close the trade down. This would make our calls out-of-the-money and that premium will rapidly erode as we approach expiration. If EVRI continues moving higher, I'll trail a 3-5 day stop loss level behind it (using some discretion here based on what looks like an obvious level of near-term support). I'm also going to continue working an order to sell half of my position if I get a double in the price I paid (paid $1.20). For the rest, I want to give as much opportunity as I can for it to continue higher.
$HON June/September 240 Call Calendar Spread: $HON is currently trading below $240 and my plan is to let the short June 240 calls expire away worthless, and continue to hold the Sept 240 calls for long call exposure the rest of the summer. If $HON trades up to or through $240 before the June calls expire away, then I'll close the entire position down and book the profit.
Positions exited for a win in May:
$GDX Bull Call Spread (exited 5/17): Our timing couldn't have been more perfect for buying the bounce off the lows in early March. This position took nearly zero heat and methodically worked higher until we hit our profit target. This one felt good.
Delta neutral credit spreads in $TLT (exited 5/20) and $XBI (5/24) were uneventful and all hit our profit targets with relative ease.
Positions adjusted in May:
$OC Long November 115 calls: We were able to sell half of this position on 5/10 for double what I originally paid. Holding the rest as long the $90 level holds.
$MSI Long July 200 calls: Similarly to OC above, we were able to get out of half at a double on 5/10. Will continue to hold the rest as long as MSI stays above $183.
Positions exited for a loss in May:
All hit our stop losses levels: $SNOW (5/11), $QRVO (5/12), $SONO (5/13)
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