Sold Long Term Jan 2011 AAPL Put

I just sold the 155 AAPL Jan '11 put for $26.10.  I will hold this until expiration, as it'll give me around a healthy $5/day income.  Then I will continue to sell AAPL put options only 3 months to expiration assuming AAPL's valuation stays reasonable (near $160).

I also got out of the AAPL 200 Jan call, selling it for $3.45.  A gain of $0.49 from buying it at $2.96 the other week.

Figured Out What to Do

Holding onto the short 140 AAPL put until October would have been painful if AAPL continued upward.  Instead of rolling up the position (premiums are low right now), I basically closed out my gains by buying a $200 January 2010 AAPL call for $2.96.  I will hold onto the 140 put until expiration, which is now trading for $3.25.  This way if AAPL goes up I don't mind, and if it goes down I don't mind buying in at 140, especially after the great earnings yesterday.

I'm hoping for a great Chipotle earnings tonight.

Bought 20 shares of CMG.B

I just bought 20 shares of CMG.B at $75.30 (probably the high for the day).  I plan on dollar cost averaging into this position over the next few months and expect it to be a core position in my portfolio for years.  I have that much faith in the company.

I guess if it's valuation got somewhere ridiculous around 40-50 P/E I would take gains and try to buy back in at lower prices.

P.S. - I made my first manual error.  When trying to quickly cancel and replace a limit order to up the limit, I accidentally replaced with a sell 100 shares order.  Terrible!  Ended up costing me $10 in commissions to get out of, and lost $7 in the bid/ask spread.

I have no idea what to do

The market has shot up in the past couple weeks.  AAPL has gapped up significantly on 3 of the 4 past openings.  Up about $20 or 15% in the in the last 2 weeks.  I'm not complaining my bullish positions are doing well, but it puts a wrench in my plans for the rest of the year.  If catastrophe days are gone, then the days of collecting fat premiums for selling puts at risk-averse valuations are also gone.

With my short AAPL $140 put marked at $4.90 with 88 days til expiration my positions stand little to gain if this monster rally continues.  However, I have little to lose if it fizzles out.  I could chase again and roll up the position, but I feel like this time is different.  If after earnings tomorrow I find reasons for a higher valuation at $150 or $155 for AAPL I'll consider rolling it up then.

I am gaining confidence in my short Sunoco (SUN) put as I see $20 as a huge support.  A road trip up to Ithaca this weekend also boosted my confidence as the drive through Pennsylvania is Sunoco-country.  Even got a Sunoco trucker to honk his horn!

Maybe the world and the market is back to normal and I should hold some long-term stock positions.  I'm considering dollar averaging into CMG, buying 10 shares a month for at least the next 5 months.  The B shares of course, since they are at a huge discount.

Out of AAPL July 125 Put

I bought myself out of the short AAPL 125 put for $0.05 on Tuesday.  Leaving my gain from the transaction at ($10.19 - $0.05)*100 - $3 commission = $1,011.  A solid 3 month gain.

I'm expecting a beat for AAPL on earnings next week which isn't saying much since everyone expects a beat, and AAPL's recent move up above $140 shows that a beat is being priced in.  The October 140 put that I sold for $13.51 is already down to about $7.  I might roll this up to an August put because the August put is selling for $3.70.  Holding that position an extra 2 months for a $330 gain doesn't seem worth it.