Money
flows out of my account this week. There was a headline on
Marketwatch about money flowing out of U.S. stocks. Headlines like
that tend to be supportive for bulls. As for my week, I didn't do
much, and what I little I did do turned out badly. I got whipsawed
out of some positions in DIS and HD. That said, it wasn't as if I was
aggressively positioned one way or another. The losses make me ever
more cautious.
Trades
(p=put, c=call, 3rd week of expiration unless specified):
Thu
Cover (buy to close) HD Apr 112 p @112.4. Ouch! Home Depot knifes
lower at the open and I cover this leg of puts for a 350% loss in
three days. Like I said ouch. I don't think it is time to be cute or
patient or brave. It is time to be mechanical and unemotional. HD
broke the strike price 112 then bounced. The strike price is my
mental stop. I got a mediocre fill in a fast and wide market. A few
minutes later, HD bounces hard, so I was whipsawed out for the big
loss. It happens. It is a hazard of using stops. The hazard of not
using stops is risking huge losses if the move continues.
Wed
Cover (buy to close) DIS Apr 105 p @105.4. When in doubt get out. In
this case for about a 65% loss basis the premium collected. Disney
had a nice run up, but now that it is moving down, I'm not seeing
chart support until 103. I got into this layer of puts as a
rebalancing move. I am getting out early because I have more layers
of sold puts at lower strike prices.
Sell
HON Apr 105 p @102.0. Rebalance a complicated position in Honeywell.
I feel like Charlie Brown from the Peanuts, and Lucy Van Pelt pulled
away the football again. HON made a high at expiration back in
February and another one now at March expiration. I thought, I was
getting head faked, but it was the real deal.
Sell
UNH Apr 124 c @116.6. Rebalance short strangles in United Healthcare.
Mon
Sell HD Apr 112 p @117.6. Rebalance short strangles on Home Depot.
Position
Summary:
long
AMBA APC ASH JWN LOCO VRX
net
long BRKB DIS FDX HD HON IWM XOM
net
neutral BA COST MNST PANW SPY UNH WHR
No comments:
Post a Comment