Saturday, July 30, 2016

Weekly: earnings AAPL BA CAT EW FB MCD WYNN

The earnings parade continues. AAPL and WYNN, I take a position before. The others after. Apple has a good report. Wynn not so good. Overall, a profitable week, but a lot of room for improvement (kind of like all of 2016).

Here are the trades (c = calls, p = puts, all are third week expiration unless noted, sell means sell-to-open, cover means buy-to-close, number is price per contract):

Tue Sell MCD Aug 129 c 15 earnings not so good McDonalds lower

Buy WYNN call ratio
Buy WYNN Sep 110 c 324
Sell 2x WYNN Sep 120 c 113 each

Sell WYNN Aug 84 p 37 add long as WYNN rallies

Sell CAT Aug 77 p 37
Sell AAPL Aug 88 p 38

Wed Sell AAPL Aug 94 p 24 earnings good, I add
Sell EW Aug 100 p 20 earnings
Sell BA Aug 128 p 42 earnings

Thu Sell FB Aug 117 p 32 earnings
Sell FB Aug 135 c 28 hedge as FB falls

Sell BA Aug 141 c 18 hedge
Sell BRKB Aug 148 c 48
Sell AAPL Aug 109 c 17

Fri Wynn earnings disappoint. I add some layers to my position
Sell WYNN Aug 108 c 84

Sell WYNN Aug 110 c 47
Sell WYNN Aug 85 p 61

Saturday, July 23, 2016


I played CMG, IBM, NFLX before their news, ISRG, MSFT, QCOM, TUP, VMW after the announcements. I went far out on the wings for the pre-earnings plays. I picked up a few "nickels" in front of a potential earnings steamroller. Overall, a positive week.

Here are the trades (c = calls, p = puts, all are third week expiration unless noted, sell means sell-to-open, cover means buy-to-close, number is price per contract):

7/18/16 Mon Sell NFLX strangles JulW4
Sell NFLX JulW4 80 p 21
Sell NFLX JulW4 120 c 22

Sell TSLA JulW4 38
Sell VRX Aug 15 p 34

Sell IBM strangles JulW4 145/172.5 c
Sell IBM JulW4 145 p 27
Sell IBM JulW4 172.5 c 31
Sell IBM JulW4 148 p 45 third leg

Tue Roll CMG:
Cover CMG JulW4 300 p 05 for 95% profit
Sell CMG JulW4 350 p 45 ahead of Thu earnings
Cover CMG JulW4 500 c 14 for 80% profit
Sell CMG JulW4 470 c 72

Sell VWM Aug 60 p 35

Wed Sell MSFT Aug 52 p 17 earnings

Sell ISRG strangles: Sell ISRG Aug 650 p 136
Sell ISRG Aug 760 c 129

Sell BRKB JulW5 148 c 36 rebalance
Sell TSLA JulW5 202.5 43 rebalance

Sell TUP Aug 55 p 20 c
Sell SPY AugW1 209.5 p 32

Thu Sell BRKB Aug 148 c 102 rebalance
Sell QCOM Aug 56 p 18 earnings
Sell TSLA JulW5 240 c 37 rebalance

Fri Sell CMG strangles:
Sell CMG Aug 350 p 81
Sell CMG Aug 480 c 51

Sell CMG Aug 335 p 50 rebalance as CMG rallies
Sell CMG JulW5 400 p 45 rebalance again
Cover TSLA JulW4 190 p 01 97% gain

Saturday, July 16, 2016

Monthly: 66-19 Brexit whiplash, Grade C-

The Brexit dip then rally causes whiplash in my portfolio. Most of the bigger losses were on the call side as the market rallied sharply. I am now lagging all asset classes and indices. The minor bit of good news is that I am doing better than cash/money markets and still positive for the year. Still, it is a lackluster performance. The last week was particularly vexing as the market kept hitting new highs and I had to cover short positions most of the week.

Here is the etf round up, best to worst, dividends not included

SLV +45.7% silver
GLD +25.0% gold
TLT +14.8% U.S. 20 year treasury bonds

EEM +10.9% emerging markets
IWM +6.3% Russell 2000, U.S. small cap
SPY +5.9% S&P 500, U.S. large cap stocks

my trading account +3.4

Not good, but not terrible, mediocre is an accurate adjective. Onward, and upwards.

Weekly: Massive Short Covering

Fark! I had a miserable week in the stock market. Some say selling naked options is like picking up nickels in front of a steam roller. This week, I got crushed as the rally rolled on. I took multiple losses on sold calls. It is most galling to lose money when the stock market is going up. Casual market observers assume that because the market went up that anyone involved is making money. 
My rule #1 is: Live to trade another day. This means taking losses when they are manageable. Third week expiration gives me a chance to regroup with a lot of dry powder. Hopefully clear my head, to do better. It has been a mediocre 2016 for me so far, with my trading account now lagging the buy-and-hold investors in SPY and IWM.

Here are the trades (c = calls, p = puts, all are third week expiration unless noted, sell means sell-to-open, cover means buy-to-close, number is price per contract):

Mon Rally rolls on and I cover some sold calls for big losses
Sell SPY JulW5 204 p 34 rebalance
Cover FDX Jul 157.5 c 155 big losses on two traunches of calls

Cover AVGO Jul 157.5 c 205 about a 300% loss

Cover TSLA Jul 222.5 c 610 about a 150% loss
Cover TSLA Jul 225 c 590 about a 450% loss

Cover VGK Jul 46 c 75 about a 230% loss
Cover WFC Jul 50 c 07 about a 20% gain

Half an hour into trading, it is a bad morning for my account balance. I could have gotten out at better levels on almost all the above. However, with so many underlyings going into the money against me, I followed my mechanical rule rather than waiting. This time the out come is not so good.

Sell SPY AugW1 202 p 41
Sell COST Aug 150 p

Sell PEP Aug 100 p 21
Sell MCD Jul 120 p 12

Cover SPY Jul 201 p 03 95% profit
Cover MCD Jul 122 c 60 100% loss
A sour end to a sour day.

Tue More short covering as the rally keeps rolling
Cover SPY Jul 214 c about a 400% loss

Roll Chipotle:
Cover CMG Jul 305 p 03 95% profit
Sell CMG JulW4 300 p 75 in front of earnings

Sell BRKB Aug 135 p 54 rebalance

Cover IWM Jul 119 c 111?? 600% loss?
Cover ULTA Jul 255 c 140 about a 170% loss

Sell GLD Aug 140 c 29 rebalance

Another down day for me, though the damage was modest. S*cks to have the stock market go up and lose money.

Wed Roll CMG: 
Cover CMG Jul 465 c 04
Sell CMG JulW4 500 c 84

Sell VRX strangles Aug 15/35
Sell VRX Aug 15 p 47
Sell VRX Aug 35 c 24

Thu Cover SPY Jul 216 c 78 about a 200% loss
Buy BRKB shares 146.64 to cover sold Jul 146 calls
Sell YUM Aug 80 p 33

Sell MON strangles Aug 90/125:
Sell MON Aug 90 p 81
Sell MON Aug 125 c 50

Sell BRKB JulW4 148 c 30

Fri Sell TSLA JulW4 240 c rebalance

Saturday, July 09, 2016

Weekly: Two weeks worth of Brexit

It was a wild market while I was away. The Brexit dip then rally caused a lot of stress, but after the whirlwind, I am ahead. The short version of the story is that I got hurt on the dip, then got whipsawed on a few positions on the rally.

The overall market recovered all of its Brexit swoon. Maybe I can sort it out more after July 15th option expiration. Two new longs are PEP and COST.

Here are the trades for the past two weeks (c = calls, p = puts, all are third week expiration unless noted, sell means sell-to-open, cover means buy-to-close, number is price per contract):

1st week here:
6/27/16 Mon Sell BRKB Jul 146 c 24
Sell IWM Jul 117 c 18
Sell SPY Jul 209 c 37

Cover FDX Jul 170 c 02 90% profit
Sell FDX Jul 157.5 c 41

Cover MCD Jul 125 c 05 about a 80% profit
Sell MCD Jul 122 c 28

Sell BRKB AUg 150 c 48
Sell AVGO Jul 157.5 52

Sell VRX Jul 26 c 18
Sell SPY JulW2 208 c 23

Sell TLT strangle 85: 
Sell TLT Aug 130 p 51
Sell TLT Aug 155 c 34

Sell TSLA JulW1 175 p 31
Sell VGK Jul 46 c 25

Wed 7/29 Sell SCTY Jun 20 p 41
Sell TSLA JulW2 187.5 p 144

Sell SPY JulW1 198 p 41
Sell AVGO Jul 140 p 70

Sell MCD Jul 114 p 28
Sell VGK Jul 43 p 35

Sell FDX Jul 138 p 35
Sell SPY Jul 198 p 74

Sell TSLA Jul 170 p 60
Sell SPY JulW2 200 p 17

Sell TSLA JulW1 200 p 58
Sell TSLA JulW2 197.5 220

Sell SPY Jul 201 p 94
Cover TSLA JulW2 210 c 325 big loss
Cover TSLA Jul 210 c 735 bigger loss

Sell TSLA JulW1 220 c 33
Sell TSLA Jul 22.5 c 242

Thu 7/30 Cover SPY JulW1 200 p 02 nice profit
Cover SPY Jul 209 c 222 big loss
Cover SPY JulW2 208 c 224 big loss

2nd week here:
Tue 7/5 Sell GDX Aug 25 p 37
Sell IWM Aug 97 p 34

Sell TSLA Jul 197.5 171
Sell TLT Aug 132 p 24

Sell MCD Aug 105 p 31
Sell GLD Aug 119 p 35

Wed 7/6 Sell GLD Jul 126 p 27

Thu 7/7 Roll out and up on TSLA puts:
Cover TSLA Jul 180 p / 
Sell TSLA JulW3 190 p 116 94 gross / 11

Cover TSLA Jul 170 p / 
Sell TSLA JulW3 195 p 188 175 gross / 22

I cover some sold puts to free up buying power:
Cover GLD Jul 117 p 01 97% profit
Cover SPY Jul 192 p 03 93% profit

Sell PEP Aug 100 p 36 earnings

Fri 7/8 Sell TSLA Jul 202.5 p 102
Sell SPY JulW3 206 p 48

Buying power covering:
Cover SPY Jul 198 p 04 95% profit
Cover GLD Jul 115 p 01 95% profit

Roll ULTA Cover Jul 220 p 05 95% profit
Sell ULTA Aug 230 p 155
Roll IWM: Cover IWM Jul 107 p 03 bp
Sell IWM Aug 107 p 54

Cover IWM Jul 117 c 97 stopped out for about a 500% loss

Sell COST Aug 150 p 51 new long Costco jumped on sales report two days ago