Position update October 15, 2013

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This is our mid October update (update and all prices as of 10/16/13), and it appears that we may have a debt and government reopening deal that has been approved in Washington.  Markets soared today, and futures are now down 2 points on the S&P, needless to say that the market priced in a resolution at the last moment.  We've had a slow 1-2 weeks of trades here because we didn't have enough confidence in a resolution coming this easy, and we didn't expect the market to rally so early.  As they say, "the market knows everything", and in this case it knew that a deal would get done.  

Here are the updates on our recent trades and open positions:

On October 1, we closed the Edwards LifeSciences stock position as we said we would if the stock returned to the low 70's.  We sold at $71.05 and profited by 11.4%.  We're kicking ourselves because the stock is now up to $76.67.  We still did fine.

On the same day we also bought back our short Puts on GLD at .41 cents, for a profit of 28%.

On October 8th, we closed the Blackstone options for a 333% gain, this was a great trade, and the stock has since moved higher supporting our directional thesis on BX.  There's likely additional upside in this stock.

Our current positions are below:

- Telsa December short $60 Puts: still on track for these to expire at $0 for a 100% profit.

- Taser long stock: No reason to sell yet, we're going to continue riding this as it still has momentum behind it.  

- Workday/Oracle paired trade: This has gone back and forth a bit, and we're currently up 3.1% on it.  We still like the probabilty that Oracle continues to disappoint, and we're going to be paitient on this for another earnings announcement.

- 3D Systems Vertical Bull Spread: We're up a net 18.6% on this trade since 9/19, and these options expire Feb 2014.  DDD is trading at $55.25, and our long calls are $55 strikes, so we're right at the sweet spot where we'd like to see DDD take off.  This trade could be a big money maker, or it could stay relatively flat.  Remember we had a net credit when we entered this trade, so any scenario where DDD stays above $42.30 is ok for us and we don't lose money.  That is 23% of downside protection.

- Facebook Nov $43 Puts Short:  This trade was upside down for us for a few weeks, but it's turned the corner and we're up 35% on it.  You want to be long FB stock or calls, and we'll try to execute something to capture gains on that side soon.

-  Fusion IO Synthetic long:  This is a trade with a long call and short put, and we're down 25% on the net position right now.  We're not worried about this position yet since FIO would have to drop below $11.55 for us to get put, and if that happened, we'd be long FIO stock at a net price of $11.55/share.  We'd be proud owners of the stock if that happened, although we'd lose money on the long March $14 calls.  We still have 5 months before expiration on this position, and we're not going to close this yet.  A small move up in FIO from the current price at $13.76 will erase these losses.

- We just sold puts on Decker's yesterday and that position is up 6%.  

 

 

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