It was Ground Hog day this week, and the January sell off blues came back. There were a number of huge landmines such as Linked In (LNKD) and Tableau Software (DATA). I got caught in a couple of difficult trades, Facebook FB and Under Armor UA. It is looking more and more like a bear market. If so, the time frame projects out to July 2016 before the skies clear, perhaps even July 2017 if it is a nasty bear market.
It is a time to regroup, and perhaps even become more cautious. Bear market rallies tend to be violent and quick, so it is not a time to get complacent on the short side.
Here are the trades (c = calls, p = put, sell means sell-to-open, cover means buy-to-close, all option are third week expiration).
Tue Roll FB puts up:
Cover FB Feb 97 p 11
Sell FB Feb 106 p 40
Cover FB Feb 85 p 03
Wed Cover UA Feb 80 p 280 about a 300% loss
I got clobbered on both ends on Under Armor, and still have open positions in the red. Yikes.
Sell BA Feb 110 p 33
Sell FB Feb 123 c 29
Sell V Mar 62.5 p 27
Thu Rebalancing moves:
Sell NFLX Feb 107 c 29
Sell MCD Feb 127 c 17
Sell UA Mar 92.5 c 40
Sell FB Mar 125 c 81
Cover AAPL Feb 120 c 02 (buying power moves)
Cover BA Feb 145 c 01
Cover CMG Feb 300 p 05
Fri Cover NFLX Feb 80 p 156 about a 140% loss
I am still short several layers of Netflix calls, and the profit from those is about the loss from this leg. So am getting out while the overall is near break even.
Cover FB Feb 106 p 266 about a 800% loss
Sell FB Feb 118 c 28
I was way too long Facebook on this sharp pullback. Hate to do it, but covered the 106 puts even though I think that is a good support level. 117 was the recent high so may be resistance. FUBAR on what coulda, shoulda been a good winner.
Cover UA Feb 75 p 280 stopped out for a 600% loss
Cover FB Feb 123 c 05 80% profit
Sell FB Feb 114 c 48 roll
Sell V Mar 80 c 16 hedge
Cover SPY Feb 180 p 82 40% profit
Cover DIS Feb 115 c 02 95% profit
Cover VLO Mar 57.5 p 357 about a 600% loss
Sell half position in FB shares 103.58 about a 4% loss