I only have 2 open options that are in play this week and both are puts:
- C $49 strike
- EBAY $49.50 strike
Both were sold a couple weeks ago based as they were both on my "of interest" list of buy targets and had sold off.
- C sold off do to a number of issues from large fines to a capital plan submission. However they are very inexpensive and banks should begin to see improved interest margins which makes the segment attractive. Question to answer in the next couple of days: Let the put get assigned and become long in C now or roll the call out 30 days? Likely to let this one get assigned as the stock is looking better and has broken resistance above $48 and is holding.
- EBAY sold off despite a solid quarterly earnings report in March. The selloff looks like it has run out of steam, but the chart still looks very weak and could take another drop if we get a weak tape. I'm going to close out this put at a modest profit this week.
Starting to look at new put targets for July.
Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in C over the next 72 hours.
Additional disclosure: Short puts: C, EBAY