Total earnings for the season: -$550.18.
| Wynn Resorts (WYNN) | |
| Trade Date: July 17, 2012 | Reporting Date: July 17, 2012 AMC |
| Closing Price Pre-Earnings: $97.36 | Closing Price Post-Earnings: $96.25 |
| Sold 2 105.00 calls at $0.53, sold 2 90.00 puts at $0.58; expiring July 21, 2012 | |
| WYNN finishes week at $97.31 | |
| Net profit of $180.51 on $4,900 margin or 4.02% return | |
| Note: Options closed early to free margin for other trades | |
| Qualcomm (QCOM) | |
| Trade Date: July 18, 2012 | Reporting Date: July 18, 2012 AMC |
| Closing Price Pre-Earnings: $56.05 | Closing Price Post-Earnings: $58.44 |
| Sold 5 60.00 calls at $0.23, sold 5 50.00 puts at $0.20; expiring July 21, 2012 | |
| QCOM finishes week at $57.68 | |
| Net profit of $182.50 on $7,000 margin or 2.61% return | |
| Netflix (NFLX) | |
| Trade Date: July 24, 2012 | Reporting Date: July 24, 2012 AMC |
| Closing Price Pre-Earnings: $80.39 | Closing Price Post-Earnings: $60.28 |
| Sold 2 100.00 calls at $0.92, sold 2 65.00 puts at $1.10; expiring July 27, 2012 | |
| NFLX finishes week at $58.90 | |
| Net loss of $1,233.49 on $5,578 margin or 22.11% loss, excludes roll down on call option | |
| Note: NFLX put closed at $8.00 on Thursday to free margin | |
| Las Vegas Sands (LVS) | |
| Trade Date: July 25, 2012 | Reporting Date: July 25, 2012 AMC |
| Closing Price Pre-Earnings: $37.51 | Closing Price Post-Earnings: $36.41 |
| Sold 5 41.00 calls at $0.26; expiring July 27, 2012 | |
| LVS finishes week at $36.79 | |
| Net profit of $113.76 on $4,291 margin or 2.65% return | |
| Amazon (AMZN) | |
| Trade Date: July 26, 2012 | Reporting Date: July 26, 2012 AMC |
| Closing Price Pre-Earnings: $219.20 | Closing Price Post-Earnings: $237.32 |
| Sold 2 250.00 calls at $0.71, sold 2 180.00 puts at $0.58; expiring July 27, 2012 | |
| AMZN finishes week at $237.32 | |
| Net profit of $223.00 on $8,767 margin or 2.66% return | |
| Mastercard (MA) | |
| Trade Date: July 31, 2012 | Reporting Date: August 1, 2012 BMO |
| Closing Price Pre-Earnings: $436.57 | Closing Price Post-Earnings: $427.20 |
| Sold 1 460.00 call at $2.50, sold 1 405.00 put at $1.36; expiring August 3, 2012 | |
| MA finishes week at $424.13 | |
| Net profit of $309.02 on $10,346 margin or 2.99% return | |
| Note: We closed the above positions and tightened the strangle to $420 to $435 more than doubling our profit, but this was a post-earnings trade. | |
| Dell (DELL) | |
| Trade Date: August 21, 2012 | Reporting Date: August 21, 2012 AMC |
| Closing Price Pre-Earnings: $12.34 | Closing Price Post-Earnings: $11.68 |
| Sold 10 13.00 calls at $0.30, sold 10 12.00 puts at $0.35; expiring August 24, 2012 | |
| DELL finishes week at $11.26 | |
| Net loss of $177.49 on $3,390 margin or 5.24% loss | |
| Hewlett-Packard (HPQ) | |
| Trade Date: August 22, 2012 | Reporting Date: August 22, 2012 AMC |
| Closing Price Pre-Earnings: $19.20 | Closing Price Post-Earnings: $17.64 |
| Sold 10 20.00 calls at $0.26, sold 10 18.00 puts at $0.16; expiring August 24, 2012 | |
| HPQ finishes week at $17.58 | |
| Net loss of $37.49 on $4,825 margin or 0.78% loss | |
As we have discussed, most option traders would much rather sell an option going into an earnings call since the premiums are significantly higher. Historically, selling out-of-the-money options yields better results than going long an option because the time value disappears as earnings are reported.
The trades above do not include roll ups and roll downs executed after the earnings report. These rolled trades would impact the profits positively but have been removed from the above trades. An assigned option closed after the report would be included.
