Diamonds

The September 84-May 84 spread that we hold four times is an easy exit right now for around 4.20, which would yield a theoretical gain of $160. That would hardly be worth the effort, so I'll suggest waiting until you can come away with at least 4.40, for a profit of about $240

We hold four September 84-May 84 call spreads with a cost basis of 3.82. We will be cutting it closer than I had imagined in trying to come away with a decent profit, but it should be easily possible if the Diamonds get drawn lower this week, passing once again through the "equator" at 84. The position leaves us somewhat frontspread, since the May calls that we are short will pick up deltas more rapidly than the Septembers we are long if

We hold four Sep 84 (DAVIF) -May 84 calendar spreads for 3.45 and a September 76 put for 1.49. The May calls that we are short are showing suprising strength, so that we are showing only a slight gain on the spreads and a more than offsetting loss on the put. There is nearly $600 of theoretical profit potential between now and next Friday

Our bullish position includes four Sep 84 (DAVIF) -May 84 calendar spreads for 3.45 and a September 76 put for 1.49. The spread is currently trading for around 4.00, yielding a theoretical gain of $220, but we can probably do better, so let it ride. If the Diamonds hit 84 this Friday, we'll try to exit for around 4.50. The timing would favor us, since it's going to dawn on traders by then that May options expire on the earliest possible date, the 15th. Come Monday, May option premium will start to melt away fast.

We hold the Sep 84 (DAVIF) -May 84 calendar spread four times for 3.45 and a September 76 put purchased for 1.49 on the opening last Thursday. Our maximum theoretical gain would come with the underlying stock trading around $84 when the May calls that we are short expire on May 15. The theoretical gain for the position would be about $779, based on a 5.77 price for the September calls, a price of zero for the May calls, and a price of zero for the May 76 put. If you work the numbers, you'll see that this position yields a theoretical profit over a very wide range of prices. I've included a snapshot of an option calculator that shows how I estimated the value of the September 84 calls as of May 15 with the underlying trading for $84.

We hold the Sep 84-May 84 calendar spread four times for 3.45. It is a conservative bullish play, but there is growing downside exposure that we should take steps to neutralize. Accordingly, I'll suggest bidding

With our Dow target at ____ in mind, I recommended buying the _______ call spread yesterday via a mid-morning post under Intraday Notes. Specifically, I suggested paying no more than 3.45 for the spread four times