Live: Friday, May 26, 2017

5/26 – 3:25 p.m. New York time

Here’s the scorecard for the day before the markets close for a three-day weekend.

New positions: None. I looked at USO but didn’t like the grid because I couldn’t construct an iron fly structure with both short strike prices sufficiently near the at-the-money point.

Rolls to new expirations: One. I exited my EWZ position that expires June 2, rolling it forward to a June 16 expiration, collecting more premium in the process.

Exits for a profit: Three. COSTGME and BIG, all of them earnings plays.

Exits for a loss: One. The loss, on BBY, was also an earnings play.

I have exit orders in place on AAPL, CPB and MRVL that have not yet been filled. I shall leave them active until the closing bell and update this post if any of the trades go through.

A productive day of trading. Over the weekend, look for The Week Ahead and the first Live update for Tuesday. And I shall return to my trading desk (well, trading sofa, really) on Tuesday. Enjoy!

5/26 – 2:20 p.m. New York time

I have updated these analyses with results: GMEBIGCOST and BBY. I rolled EWZ forward to a position that expire later.

5/26 – 11 a.m. New York time

As I noted last night, this will be a day for exits, especially for positions whose options expire a week from today, on June 2.

Out of my 11 present positions, I have so far this morning placed six exit orders. Two of them, GME and BIG, has been filled. The rest — AAPL, CPB, COST and MRVL — haven’t been filled yet.

That leaves two more positions expiring June 2 to be handled:

The first, BBY, is a loser, having no hope of profitability. I shall pick my moment and exit.

Secondly, my position in the exchange-traded fund EWZ has a small profit, Giving me the choice between selling and rolling forward to a later expiration. which I may or I may simply roll it forward to a later expiration. I have checked out my pool of liquid exchange-traded funds for prospects. Only EWZ piques my interest, with high implied volatility relative to its one-year range, to its most recent broad move and as a multiple of the VIX, So I’m leaning toward a roll.

I shall be updating the analyses for all exits with results.

As for entries, I checked out my one very shaky prospect, BNS, and its options grid remains too spotty to trade. I am passing on it without a full analysis

5/25 – 8:40 p.m. New York time

Friday’s analysis and trading will cover more days that usual because the U.S. markets will be closed on Monday for the Memorial Day holiday. In searching out prospects for action on Friday, I looked at earnings announcements on Friday after the closing bell, Monday both before the opening bell and after the closer, and Tuesday before the opening bell.

And the number of viable trades that I uncovered through my Sherlock-like sleuthing: None. Only one stock comes close to meeting my liquidity requirements: BNS, which publishes earnings on Tuesday before the opening bell. And one glance at the options grid led me to write on my spreadsheet, with uncharacteristic drama, the word: “AWFUL!!!”.

In fairness, I shall look at BNS tomorrow to see if it improves. My guess: Probably not.

I shall also run through the exchange-traded funds to see if anything looks like a reasonable trade.

And as always, I shall be looking for exits, particularly for the positions that expire June 2, the end of next week.

By Tim Bovee, Portland, Oregon, May 25-26, 2017

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