A pretty light day today. Traded SINA to the short side. I sold some out of the money calls and
I also sold some out of the money puts as a hedge due to the high premium that was being offered. The net effect of selling covered shorts is the same as selling naked calls. SINA will most likely be a hold for the next few days to week. In the near term I expect SINA to retest the $125-130 price level and longer term to test $110-115 level. there is not pushing it besides shorts getting squeezed and retails thinking this is worth more than it is because of reported gains in their “Chinese Twitter” service.
HPQ which I have a small long with my retirement account is struggling to stay above 40 the strike price of the puts. Enough time has passed that at least the puts are still almost break even. I may look to roll them over to June or July if HPQ just sits here at $40 for any length of time.
COCO is also having a tough time lately. selling $4 and $5 puts and getting exercised on only some while then selling the calls has worked so far. One would expect COCO to stay over $4 or there may be more serious trouble ahead. For the last six months it has been a nice consistent producer of option premium. I expect to write some $4 puts by the end of the week if the price stays at this level.
The website continues to make progress and some new features should be rolling out by the start of next month