November 19, 2015  Trade Alert  -   JNJ Jamboree  Portfolio

The company pays a $.75 dividend tomorrow, and there is less premium than that in the 101 and 102 short calls, so we need to trade out of them to avoid an exercise:

 

BTC 2 JNJ Nov-15 102 calls (JNJ151120C102)
STO 2 JNJ NOV4 15 103 calls (JNJ151127C103) for a credit of $.03  (selling a diagonal)

BTC 3 JNJ NOV4 15 101 calls (JNJ151127C101)
STO 3 JNJ Dec2-15 103 calls (JNJ151211C103) for a debit of $.74  (selling a diagonal)

BTC 2 JNJ NOV4 15 102 calls (JNJ151127C102)
STO 2 JNJ Dec-15 105 calls (JNJ151219C105) for a debit of $.25  (selling a diagonal)

BTC 2 JNJ DEC1 15 101 calls (JNJ151204C101)
STO 2 JNJ Dec2-15 104 calls (JNJ151211C104) for a debit of $1.16  (selling a diagonal)

BTC 1 JNJ DEC1 15 102 call (JNJ151204C102)
STO 1 JNJ Dec2-15 104 call (JNJ151211C104) for a debit of $.55  (selling a diagonal)

BTC 1 JNJ DEC1 15 102 call (JNJ151204C102)
STC 1 JNJ Apr-16 100 call (JNJ160415C100) for a credit of $4.13  (selling a diagonal)

BTO 3 JNJ Apr-16 105 calls (JNJ160415C105)
STC 3 JNJ Apr-16 100 calls (JNJ160415C100) for a credit of $2.48  (selling a vertical)

Be prepared to change these price limits by $.05 or more in order to get an execution.

 
Happy trading.

 

Terry