Saturday, August 15, 2015

Weekly: out of synch JWN SPY insurance

My account was up this week, but it felt like I was out of synch with the markets. There was a huge whipsaw dip with SPY down 3 full points early, then rallying back to about unchanged. I didn't navigate the chop all that well, but didn't get destroyed either. 

Highlights include a new long position in JWN, and adding a bearish SPY put spread. Here are the trades (p = puts, c = calls, all are third week expiration unless noted, sell means sell-to-open):

Fri Sell NFLX Sep 140 c @123.5 Rebalance in Netflix. I have second thoughts about closing out so many layers of calls on Netflix and make this conservative move. Overall, I am net long and deep in the red on my current complicated position.

Sell JWN Sep 72.5 p @79.3 41 Nordstroms gaps up after earnings. Chart support at 72.5. New long position.

Thu Cover (buy to close) NFLX AugW2 130 c @124.0 Netflix is up 3 points. I am going to have limited computer access tomorrow, so I close this leg for a 35% profit, rather than take the 8% chance that it comes into the money. 15 minutes later I close two more legs:
Cover NFLX Aug 135 c @125.0 for about a 35% profit.
Cover NFLX Sep 135 c @125.0 335 about a 5% profit.

Sell AAPL Aug 109 p @116.0 29 I rebalance again in Apple as it drifts higher. What a mess I have made.

Wed Cover (buy to close) AMBA Aug 105 p @108.0. I take about a 200% loss on this leg as Ambarella breaks the 50 day moving average to the downside. I sold multiple layers of puts and calls so getting out here lets me have an overall profit for the cycle on AMBA, if the rest come in.

Cover (buy to close) JPM Aug 67.5 p @66.8 I take about a 350% loss on this leg on JP Morgan Chase bank. JPM breaks the strike price as it gaps lower.

Sell AAPL Aug 120 c @110.8 Rebalance in Apple as it moves lower. Chart is beginning to look like bear market action. Resistance at 120. Late in the day, I rebalance again: Sell AAPL Aug 103 p @115.3 24 Some might tell me to stop digging, that my timing is awful.

Sell IWM Sep 109 p @120.1 I add some long stock market delta by selling some Russell 2000 puts. Another crazy day. Another difficult day of trading for me.

Tue Sell NFLX AugW2 130 c @121.4 Rebalance in Netflix as it declines. A few hours later, I sell another batch of calls Sell NFLX Aug 131 c @120.8

Buy SPY vertical put spread:
Buy SPY Oct 199 p / Sell Oct 193 p @208.0 
I buy another small insurance policy against a 10% market correction. 193 is 10% off the all time SPY high of 213+. This is for debit and I may sell shorter term options around this position to pay for cost.

Mon Sell TSO Sep 85 p @104.5
I open a September position in Tesoro. TSO reported strong earnings last week. I am giving myself plenty of room with the way out of the money put sale.

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