What a wild week! Lots of big movers on earnings. SPY down for the week, but it was a choppy ride. I attend a CANSLIM meetup and will do a separate write up on that tomorrow. One question asked was "who is making money in this market?" Only one hand went up.
For me, my account took a big haircut, but I am still up for 2015. New longs this week are APC and BA. New short BABA. Here are the trades:
* p = put, c = call, all 3rd-week of the month expiration
Fri Sell XOM Mar 95 c @87.4. I rebalance short strangles on Exxon Mobil by selling some March calls to offset short March 75 puts.
Thu Sell BABA Feb 105 c @89.4. New short positon in Alibaba on disappointing earnings. Sold these calls during the first 15 minutes of trade, at the bid, to get an immediate fill in a wide market. My thinking was volatility would get crushed as the day continued. This turned out to be correct and I had around 50% profit basis the premium collected, by the end of the day.
Sell IWM Feb 123 c @116.3. Rebalance short strangles on the Russell 2000 etf. I sold these during the morning weakness and it is the opposite effect, sitting on about a 100% loss by the end of the day. The market giveth, the market taketh.
Sell UNH Mar 120 c @109. Hedge short Mar 95 puts by selling calls. I placed the order during morning weakness, where it sat, until the monster market rally came in. What a crazy market!?
Wed Sell BA Feb 123 p @137.5. New long position in Boeing after earnings.
Sell MMM Mar 145 p @164.5 Add to longs in 3M Corp by opening a March position. Earnings are just okay, but it removes one uncertainty.
Mon Sell FDX Mar 200 c @176.1. I hedge my short puts by selling calls on Federal Express.
Sell SPY Feb 213 c @204.0. SPY looks weak, I see little chance of new highs by February expiration. As SPY rallies against this recent move, I compensate by selling SPY Feb 189 p @205.3.
Sell APC Feb 68.5 p @82.7. New long position in Anadarko Petroleum
long APC ASH BA DIS GDX HON LUV MMM SPY UNH VRX WFC
net long AMGN FDX ILMN IWM JWN UNP XOM
net neutral GLD WHR