Saturday, October 10, 2015

Weekly: air pocket in SKX

Sketchers SKX suffered a dramatic drop on no news, and I exit my long positions for big losses. Other highlights are a bevy of winners in IBB the biotech etf, and new long positions in ALK JBLU TSO (Alaska Air, Jet Blue, Tesoro Energy). I also took some small losses in GoPro GPRO Honeywell HON and a big whopper covering some IWM calls I sold. 
Overall, my account was up nicely, as the market rallied all week. It is nice to be wrong and yet still make money. It is a by product of the hedging, low risk, low reward style. Some ask why I trade that way, and the answer is weeks like this, when I am mostly wrong on market direction (I was too cautious), but still made decent money. Those that are better at directional trading do that.

Here are the trades (c = calls, p = puts, weeklies have the W suffix (OctW5 for October week 5), all others are third week expiration. The number is the price paid per contract (eg: 25 = $25 per contract)

Mon A WTF? rally. I am positioned okay because IBB doesn't participate in the rally.

Sell V Oct 67.5 p 22
Sell IBB Oct 285 p 156

Sell IWM Oct 107.5 p 35
Sell IBB OctW2 335 c 45

Sell JBLU Nov 22 p 25
Sell IWM Nov 100 p 60
Sell SPY OctW4 186.5 52

Tue Sell IBB Oct 327.5 c 76
Sell TSLA Oct 270 c 26

Wed Sketchers dives lower on no news. Again WTF? I get out near the lows :(
Cover SKX Oct 118 p 338 for about a 250% loss
Cover SKX Oct 120 p 380 for about a 300% loss

Cover V Oct 72.5 c 122 for about a 200% loss
Sell DIS Oct 107 c 15 hedge sold puts

Thu Sell ALK Oct 70 p 25 New long position in Alaska Air
Sell SKX Oct 115 p 64 I go back into Sketchers
Sell TSLA Oct 250 c 26 Rebalance in Tesla Motors

Cover GPRO Oct 24 p 27 Close this leg on GoPro for a 20% loss.

Fri Cover IWM Oct 115 c 158 for about an 800% loss in the Russell 2000

Cover HON Oct 105 c 29 about a 10% loss in Honeywell

Sell DIS Nov 92.5 p 70 rebalance in Disney
Sell SPY OctW5 187 p 46 rebalance in S&P500

Sell TSLA Oct 190 p 28 add to a net long position in Tesla
Sell TSO Nov 85 p 68 new long in Tesoro

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