Yelp Stock And Option Position Trading Update

In this Yelp position trading video, I am going to do an update for the stock and options trades done from 3-18 through 3-28.

Our previous yelp stock and option position video ended with the following closing position, as marked on the chart below:

  • Red dot1 – short yelp 96.65
  • Yellow square – sell 85p 1.45 3-21 expiration
  • Red dot2 – short yelp 90.85 addon
  • Sell 95c 1.40 3-21 expiration

Yelp Stock And Option Position Trading

Yelp Stock And Option Trading 3-18 To 3-28

(A) 3-18-2014

  • Buy yelp 89.30 – reverse out of all red dot1 and red dot2 shorts

(B) 3-19-2014 – 3-20-2014

  • Red dot3 – short yelp 88.28
    • Reverse out of 89.30 buy – have 1 unit partial at 90.74, but net loss on trade
      • Note that the red dot2 addon had multiple partials and essentially a breakeven exit – making that trade a net winner
    • Sell 90c 2.47 3-28 expiration
      • I sold this call with the short and the premium did give a breakeven above the recent high – I would have liked a higher strike but didn’t like the credit
  • Buy 85 put 1.90 3-28 expiration
    • Sync renko base
    • 85p calendar spread protection
      • Short 3-21 put
        • No ratio spread but it doesn’t matter – this is expiration and I would have stock put to me if I didn’t close a short put that was in the put
      • By doing the long put with the yelp short, I can also setup a ratio put short

(C) (D) 3/21/2014

  • 3-21 Blue line-yellow square reject – close 3-21 85p 1.95
  • 3-24 sync with renko yellow circle1 into triple top breakout
    • Could sell 4-4 expiration 80 put 1.50 – but didn’t like doing this back into the blue line double top shift line resistance
    • I did use the pmd to close the long 85p 2.70, since I wasn’t doing the ratio short here

(E)  3/24/2014

  • If E had been followed by a higher low and the look of a resistance triple top breakout – then I would have sold a put
  • Sell 90c 1.70 4-4 expiration – 91.70 gets me right above the recent highs and I would be looking to go long for protection of a failure of the blue resistance line
    • I was also going to do a short addon off the double top into the pmd low – but looking at renko yellow circle2 at the time and didn’t do the trade
  • Renko yellow dot [synced with tick chart blue square reject] – short yelp addon 80.24

(F)  3-25-2014

  • Pmd low addon partial 3-25 77.74
  • Renko yellow circle3 – exit addon 78.88
    • Sell 75p 2.20 4-4 expiration
    • Continued to trail remainder of red dot short
      • Didn’t buy a call for synthetic protection – because an 82c cost 2.10 and resistance was 82.48
      • And with resistance here, I didn’t want to give up short call credits for a ratio spread
        • Similar to what I said about E and if there was a higher low and a resistance-triple top breakout setup – that is what I was looking for to buy calls

(G)  3-26-2014

  • Sell 83 call 1.95 4-4 expiration
  • Short yelp addon 78.96
    • Discuss position chart yellow square – counter momentum trade

(H) 3/27/2014

  • Sell 74 put 2.10 4-4 expiration – buy 80c 2.75 4-4 expiration
    • Synthetic protection for shorts that includes addon – note that if we go back to resistance now, we would be doing so at triple top breakout potential
    • Held trailing addon short at renko yellow circle4 reverse
      • Best partial = 74.60 – and have the synthetic protection
      • Long 1 unit 80c 2.75 short 2 units 83c 1.95 = ratio call short 1.15 credit
        • Again, because of the pmd low and resistance triple top breakout potential
        • If we got back to resistance and it rejected – I would be inclined to close the long call for a profit and keep the short