OUT UNTIL LATE JULY

The BRCM Trade

Since I am going to be out on vacation for a while, I am not going to have access to trading near July expiration. I have rolled over my July shorts on BRCM to August, which is probably not the best thing to do, but I have no choice in the matter.


For those of you following this position, all you have to do is to roll over the shorts to August one week before expiration. BRCM seem to be doing well, and volatility is on the rise. Remember, if there is a volatility spike, to get out of the position all together.


My Elliott wave analysis tells me that the Nasdaq is due for a rally, and BRCM may be a participant. This is why I have balanced the number of short calls and puts again (20, 20), which gives Delta a bit of an advantage.


Note how close good the fills by OptionsXPress. all 4 legs, the execution price was right at the middle of the bid/ask, which is quite good in my opinion.

Ideally, you want close to $1 difference between the July and August trades. Granted, I am giving up a lot of time here, but if you do the trade 1 week before expiration, a $1 gap is not unusual. You get to keep that dollar, of course.

Since BRCM has not have a volatility spike, it is OK to do the rollover. The objective is to wait until that happens.








As a refresher, here are the original trade:



This is the rollover first rollover.






If you have platinum, there is the trade's URL. It seems to be copying fine for me.

http://platinum.optionetics.com/cgi-bin/platinumv30/op4email.php?trade_name=1|BRCM™_date=2005-05-16&sym=RCQ&num_legs=12&tra0=20:F05:35.000:0.558:BRCM:2005-06-10:27.57799911:FFFF99:0:0&tra1=-20:F05:35.000:1.550:BRCM:2005-05-16:42.70399857:FFFF99:0:0&tra2=20:R05:35.000:0.693:BRCM:2005-06-07:27.75799942:FFFF99:0:0&tra3=-20:R05:35.000:0.850:BRCM:2005-05-16:15.04800034:FFFF99:0:0&tra4=21:G05:35.000:2.148:BRCM:2005-06-28:35.33499908:FFFFFF:0:0&tra5=-21:G05:35.000:1.341:BRCM:2005-06-10:29.57900047:E8E8E8:0:0&tra6=19:S05:35.000:0.432:BRCM:2005-06-28:34.93600082:FFFFFF:0:0&tra7=-19:S05:35.000:1.318:BRCM:2005-06-07:29.00799942:E8E8E8:0:0&tra8=-20:H05:35.000:3.055:BRCM:2005-06-28:37.72900009:FFFFFF:0:0&tra9=-20:T05:35.000:1.237:BRCM:2005-06-28:37.36299896:FFFFFF:0:0&tra10=40:W05:32.500:2:BRCM:2005-05-16:32.44200134:66CC! FF:0:0&tra11=40:K05:37.500:2.75:BRCM:2005-05-16:38.04999924:9! 9FF66:0:0