Panjang

OPENING: VRX MONIED COVERED CALL

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I'm fading the Ackman dumpage here with a small position bet that price will stay clear of $10 through April 21st expiry ... .

Bought 100 Shares
Sold April 21st 10 Call
Whole Package: 9.38
Max Profit: $62 per 100 shares/contract
Max Loss/BP Effect: $938 per 100 shares/contract

Nota

I'm feeling good about being in this monied covered call, so upping the ante slightly by rolling the short call out to May to collect an additional .40 credit on this "up" day. Cost basis is now 8.98/share.

Nota

This guy's bullish with a projection of 50/share: seekingalpha.com/article/4058474-valeant-greedy-others-fearful Would be nice, but a lot of assumptions are being made to "get there." I'll consider rolling out and up, but remaining "monied" if we see any kind of strength. Hasn't shown up since the Ackman "dump."

Nota

Looks inclined to give up $10. I'll consider rolling the short call out again on an up day or if the premium in it decreases by 50%. Right now, the next available month is July, so I probably won't want to roll in any event until June opens up.

Nota

With the 10 short call approaching 50% of its original value, I'm planning on rolling out to the July expiry for an additional .58 credit here, reducing my cost basis to 8.40/share.

Nota

Roll filled for a .58 credit.

Nota

Breaking 9.00 here, but attempting to stay mechanical. Will roll if the break even is tested and/or the short call reaches 50% max profit (i.e., loses 50% of its value).

Nota

Helps to "do the math" on a potential roll. I figured I'd roll down to the July 21st 9 strike here for a .39 credit, which would reduce my cost basis in the shares to 8.01. A call away at 9.00 would yield a .99 gross profit -- more than I was shooting for originally.

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Covering here for an 8.10 credit and basically a scratch, freeing up buying power for closer in time setups that don't make me "itchy."

NaughtyPines

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