Sunday, November 13, 2016

Weekly: Election rally

Wow what a week. Sorry for the late update, but my schedule is getting busier, so late updates or no updates might be expected for the next five weeks or so.

I was surprised by the market reaction to the election news. Especially because U.S. stock futures were down about 5% in Asia when the results were coming in. I came in light on positions and remain so. I added longs to defense related stocks such as BA, LMT, NOC. NVDA was another new long after a huge earnings gap up.

About two months ago, I did four election timed back ratios. Only one of the four is paying off. The other three are at break even or small loses. Overall, I think I am up a bit.

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 Massive rally on pre-election day news. I add a bit of long delta, but remain cautious. The new trades are way out of the money.

Sell EA Nov 74 p 18
Sell WYNN Nov 77 p 18

Sell CMG Nov 320 p 30
Sell BRKB Nov 138 p 23

Sell FB Nov 112 p

Tue Sell EXPE Nov 135 c 30

Wed Sell BRKB Dec 145 p 114
Sell FB Nov 116 p 19

Sell IWM Nov 112 p 14
Sell-to-close SPY Nov 205 p 27 for 90% loss, but I have offsetting trades

Sell RTN Dec 130 p 39
Sell BA Dec 125 p 29

Sell NOC Dec 220 p 70

Thu rebalance a few positions

Sell BA 141 p 24
Sell UNH Nov 138 p 30

Sell TSLA Nov 202.5 c 49
Sell SPY Nov 207 p 24
Fri Nvidia gaps higher on earnings.
Sell NVDA 65 p 28
Add to longs as the rally gets gathering steam.
Sell NVDA 75 p 12

Sell IWM 112 p 38

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