Friday, November 17, 2017

Monthly: Shorter days, less trading, 44-4 Grade B

As the days grow shorter, so does my time for the stock market. I count 44 winners, 4 loser for the Novemeber option cycle, self-grade B. I make modest gains, slightly closing the gap between my portfolio and buy-and-hold of SPY.

Here are a few etfs, best to worst YTD:
EEM +33.7% Emerging market equity
SPY +15.4% S&P 500, U.S. large cap

GLD +12.1% gold
IWM +10.1% Russell 2000, U.S. small cap

SLV +7.9% silver
TLT +6.1% 20-year U.S. treasury bonds

my trading account +15.4% right with SPY, but SPY also has +1.5% in dividends.

With less time, I will tend to be ever more cautious. The bull market is intact. Corrections are likely to be shallow, but eventually we will get a scare. The big one? Likely a good ways off, considering how much chatter there still is about a crash. Seems like only a few people have the money and mentality to invest in the market, that the mania often seen at major tops seems far off. Most of the chatter at the gym, the coffee shop or church isn’t about the stock market. Of course, there will be a correction, a bear market, but for now, seems like most corrections are shallow.

Bear market? Again, look for an inverted yield curve, transports leading the market lower. Semi conductors and financials can also lead the market lower. Yes, valuations are stretched, but they have been for a few years now. A blow off top could bring about a sharp down turn, but it would be from higher levels.

Weekly: ROKU YY

I add new longs in the volatile stocks ROKU YY. The options aren’t liquid, so use caution. Other than that, not much going on. My time and energy for trading is low this time of year, so I am doing fewer trades. Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, any percentages are basis the premium collected, the number near the end is price per contract).

Mon Sell AAPL Dec 155 p 30
Sell BABA Dec 165 p 72

Sell BABA Dec 220 c 22
Sell WYNN Dec 135 p 54

I take profits, most are in the 90% to 95% range:
Cover BRKB Nov 170 p 01
Cover WYNN Nov 143 p 05

Cover CMG Nov 325 c 05
Cover IBB Nov 285 p 05
Cover BA Nov 210 p 01

Tue Cover BA Nov 285 c 01
Cover ULTA Nov 175 p 05

Sell IBB Dec 330 c 65
Sell PYPL Dec 67.5 p 26

Sell FB Dec 160 p 39
Sell BWLD Dec 110 p 30

Wed Cover AAPL Dec 200 c 03
Sell AAPL Dec 185 c 27

Sell NVDA Nov 220 c 19

Thu New positions in two not-so-liquid underlyings.
Sell YY Dec 90 p 45
Sell ROKU Dec 25 p 45

Fri Cover CAT Dec 155 c 02
Cover TSLA Nov 250 p 01
Cover TSLA Nov 350 c 02

Sell NFLX Dec 220 c 23
Sell NFLX Dec 170 p 42

Sell TSLA NovW4 340 c 41
Sell TSLA NovW4 287.5 p 34

Sell WMT Dec 90 p 23

Friday, November 10, 2017

Weekly: NVDA chugs ahead

I do better this week. Not quite as scatterbrained, but I have a lot on my mind besides the stock market. Highlights of the week are reducing risk in BRKB and a good earnings report in NVDA.

Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, percentages are based on the premium collected, number near the end are price per contract).

Mon Sell MCD Dec 185 c 12
Sell QCOM Dec 50 p 16
Cover MCD Nov 170 c 172 for a 500% loss

Tue Cover M Nov 18 p 120 for 350% loss
Sell RCL strangle: Sell RCL Dec 115 p 69
Sell RCL Dec 145 c 24

Cover MCD Nov 145 p 04 for 85% profit

Wed Cover BRKB Nov 180 p 34 for 85% profitCover BRKB Nov 185 p 164 for 33% profit

New longs:
Sell WYNN Nov 143 p 34
Sell MAR Nov 115 p 35

Thu Stock market sells off, then recovers. I make some minor moves
Cover BRKB Dec 185 c 283 for 50% profit
Cover BRKB Dec 185 p 415 for breakeven profit

Sell BRKB Dec 195 c 38
Sell NFLX Nov 207.5 c 24

Fri Nvidia earnings good. I add layers.
Sell NVDA Dec 260 c 40
Sell NVDA Dec 180 p 66

Sell TSLA Dec 375 c 58
Sell TSLA Dec 225 p 59

Sell RCL Dec 135 c 45

Cover SPG Nov 135 p 05 for 90% profit
Cover AAPL Nov 148 p 02 for 98% profit

Saturday, November 04, 2017

Weekly: The absent minded trader

I feel absent minded this week, forgetting many minor things. In the stock market, I took assignment on sold AAPL calls and paid for it. Even with this unforced error, I eek out a gain for the week. It is one reason I like to play with the odds in my favor. There is more room for mistakes. Tesla’s dump on earnings news doesn’t burn me, because I sold options so far out of the money.

My mind is elsewhere at times, so try to stay out of trouble. Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near end is price per contract).

Mon A blue Monday for me as AAPL continues higher after my failure to close before getting assigned. Cover 100 AAPL shares 166.07 effectively about a 3000% loss on the 162.5 calls I sold that got assigned. Down the rabbit hole I go, and I come out a lot worse.Cover AAPL Nov 165 c 525 for a 260% loss
Sell AAPL Nov 185 c 35

Sell NVDA Nov 165 p 55

Wed Sell QQQ Nov 144 p 24
Sell SPY Nov 248 p 24

Thu Tesla lower on earnings, I add more layersSell TSLA Nov 250 p 57
Sell TSLA Nov 350 c 55

Fri Sell MCD Nov 160 p 23
Sell TSLA Nov 350 c 28

Sell AAPL Dec 200 c 18
Sell AAPL Nov 162.5 p 36

Close some winning positions to free up buying power:
Cover AAPL Nov 135 p 02
Cover SPY Nov 235 p 05
Cover TSLA Nov 405 c 04

Saturday, October 28, 2017

Weekly: Burritos and Bezos

The week was meh for me as I lose a tiny bit. News includes poor earnings for Chipotle and booming results for Amazon. Jeff Bezos from Amazon made approximately $8 billion on Friday, which is about the current market cap for CMG. I pivoted from near delta neutral short strangles to net short on CMG. I didn’t lose much there. I didn’t play AMZN.

I took on water in biotech etf IBB. I initiate some new longs and have mixed results. I close out my bottom fishing expedition in GE with a humbling loss.

Friday was as close to a melt up as I’ve seen. Like I said I was down for the week, and that feels twice as bad when the major averages are booming ahead. I got assigned on some AAPL calls. An oversight, I plan to close early on Monday.

Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near the end is price in dollars per contract).

Tue I initiate new longs in Stanley Tools, 3M Corp, and Caterpillar after earnings.

Sell SWK Dec 155 p 100
Sell MMM Dec 220 p 108

Sell CAT Dec 155 c 28
Sell NVDA Nov 230 c 128

Sell SPG Dec 145 p 77

Wed Sell TSLA strangles:
Sell TSLA Nov 250 p 62
Sell TSLA Nov 405 c 57

Sell ADBE Nov 190 c 15
Sell NVDA OctW4 202.5 c 20

Cover BABA Oct 190 c 02 for gain
Cover BABA OctW4 172.5 p 235 for loss

Sell SWK Dec 175 c 40
Sell NOC Dec 275 p 105

I pivot to net short on Chipotle after poor earnings
Sell CMG Dec 350 c 80
Sell CMG Nov 325 c 50

Sell CAT Dec 120 p 40
Sell BA Nov 285 c 21

Thu Sell NSC Dec 115 p 45
Sell WMT Dec 77.5 p 17

Cover CMG Dec 435 c 05 for gain
Sell IBB Dec 350 c 70

Fri Tech stocks leap higher, led by Amazon and Google on earnings
Sell QQQ Dec 142 p 77
Sell AAPL Dec 145 36

Cover GE Nov 21 p 81 for loss
Sell AAPL Nov 148 p 71

Sell MSFT Dec 77.5 p 27
Sell NFLX Nov 175 p 46

Sat Assignment! AAPL OctW4 162.5 calls assigned, I got busy and didn’t see this one. I plan to close it out early Monday.

Saturday, October 21, 2017

Monthly: Smelling like a rose, 63-8, Grade B+

I count 63 winners, 8 losers for the October option cycle. Grade B+. There are costly whipsaws in NVDA and TSLA. I am up about 14% for the year, which is good, but nothing amazing.

Here are some etfs I track and their ytd performance, best to worst:

EEM +32.1% emerging markets equity
SPY +15.0% S&P 500, US large cap

IWM +11.2% Russell 2000 US small cap
GLD +10.9% gold

SLV +6.4% silver
TLT +4.1% US 20-year treasury bonds

Precious metals and bonds are slipping, after a strong first half of the year. Equities continue to power ahead. The surprise continues to be EEM considering the chatter about trade wars early in the year. My trading account is at +14% s, right in line with SPY and IWM.

Again, for newer readers, I tend to describe myself as a cautious, slow moving options trader. During strong bull moves I often lag. Considering that I expected a 5% to 8% correction in September/October, and made several trades in early September based on that, I have come out smelling like a rose.

I try not to let my expectations paint me into a corner. Listen to the markets. It remains a bull market. Those expecting a sharp pullback to let them in have been waiting for years now. I signaled a red flag warning on this blog in April 2014 at SPY 187 mostly based on valuations. SPY is 257 today, almost 40% higher in 3 1/2 years. If I had stayed stuck on valuation warnings, I would have missed out on those gains, Some traders have taken losses while the most hated bull market of all time, continues to march to new highs.


I initiate positions in ADBE CMG PYPL ULTA. Otherwise, not too much going on. I nip and tuck at other existing positions. Markets continue their slow yeast rise. Will the souffle crumble? Way too many novices seem worried about the market for any significant downside.

Here are the trades (p = puts, c = calls, sell means sell-to-cover, cover means buy-to-close, percentage gain/loss are based on the premium collected, number near the end is price per contract).

Mon Sell CMG Strangle: Sell CMG Dec 435 c 41
Sell CMG Dec 240 p 90

Sell LMT Dec 285 p 85
Cover BA Oct 215 p 02 for 95% profit

Roll BRKB for 195 debit: Cover BRKB Oct 180 c 800 for 470% loss
Sell BRKB Dec 185 c 605

Sell IBB Dec 290 p 70
Sell AAPL NovW1 147 p 53

Tue Sell BABA OctW4 190 c 22

Thu Sell BRKB Dec 200 c 45Sell ULTA Nov 175 p 65

Cover SPG Oct 140 p 01 for 98% gain
Sell ADBE Nov 155 p 39

Sell UNH Nov 190 p 49
Sell AAPL OctW4 162.5 c 20

Fri Sell UNH Dec 185 p 65
Sell ADBE Dec 150 p 71

Sell PYPL Nov 65 p 19
Sell QQQ Dec 133 p 41

Cover TSLA Oct 400 c 01 for 99% gain

Friday, October 13, 2017

Weekly: Not enough bull, bottom fish GE, M

I am up for the week, but take a few more losses. I get whipsawed in Shopify and cover some calls in Nvidia and McDonalds for losses. Overall, I wasn’t bullish enough.

Here are the trades (p = puts, c = calls, percentage gain/loss is vs. premium collected, number near the end is price per contract, sell means sell-to-open, cover means buy-to-close):

Mon I rebalance in BABA, FB, NVDA
Cover NVDA OctW2 157.5 p 02
Cover SHOP Oct 125 c 05

Sell NVDA OctW2 175 p 14
Sell FB OctW2 167.5 p 12

Cover FB OctW2 162.5 p 05
Sell FB Oct 165 p 40

Sell BABA Oct 170 p 43
Cover BABA Oct 155 p 05

Tue Crunch time in Shopify as I close one leg for a huge loss. I close some trades for gains to free up buying power. I add more layers to Nvidia as it rallies.

Cover SHOP Oct 90 p 380 for a 550% loss
Cover BRKB Oct 175 p 05 for 95% gain

Sell NVDA OctW2 177.5 p 20
Sell MCD Dec 140 p 38

Sell NVDA OctW2 180 p 33
Cover TSLA OctW2 390 c 03 for 85% gain

Sell MCD Nov 145 p 29
Cover MCD Oct 145 p 01 for 97% gain

Cover SPG Oct 145 p 03 for 97% gain
Cover SPY Oct 225 p 04 for 98% gain

Sell NVDA OctW4 175 p 118

Wed I am stopped out on one leg for Nvidia.Cover NVDA OctW2 190 c 248 for 180% loss

I chicken out on Netflix before earnings, taking small profits.
Cover NFLX Oct 240 c 36 for 25% profit
Cover NFLX Oct 162.5 p 29 for 20% profit

Sell MCD Oct 157.5 p 17
Sell BABA OctW4 172.5 p 60

Thu I go bottom fishing in Macys and General Electric
Sell M Nov 18 p 29

Sell GE Nov 21 p 16
Sell MCD Nov 155 p 88

Roll BRKB for 270 debit: Cover Oct 180 c 620 for 90% loss
Sell BRKB Nov 185 c 250

Fri Rallies in McDonalds and Nvidia trigger more stops, more big losses.

Cover MCD Oct 165 c 136 for 750% loss
Cover TSLA Oct 300 p 05 for 97% gain

Sell MCD Nov 150 p 33
Sell SPY Dec 240 p 108

Sell NVDA OctW4 210 c 63
Cover NVDA Oct 192.5 c 340 for 190% loss

Cover FB Oct 155 p 03 for 85% gain

Friday, October 06, 2017

Weekly: broken record

The stock market breaks records. Multiple consecutive record highs for SPY for the best run in 20 years. Most the indexes march to record high after record high. My comments may sound like a broken record with descriptions such as zombie bull, the most hated bull market of all time. Newbies and Chicken Littles continue to call for the sky has to fall. Old timers might remember the cliche, don’t fight the tape. The tape is strong. Transports have confirmed record highs. The Russell 2000 is picking up speed.

I make money, but not as much as more aggressive bulls. This tends to be the fate during a strong bull move, for the cautious, hedging, often delta neutral trader.

One possible danger is a blow off top. However, to get there, we need an acceleration to the upside, such as a 10% market gain in a month or 20% in three months. Without that, there are still way too investors positioned defensively. Many are waiting for a minor 5% dip to get in. I thought we would get that dip in September, but it didn’t happen.

Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near hte end of the line is price per contract):

Mon Berkshire rally rolls on, I scramble to stay near delta neutral, then throw in with the bulls.

Cover BRKB Oct 165 p 03Sell BRKB Nov 175 p 83

Sell BRKB Dec 185 p 420
Sell QQQ Nov 135 p 51

Sell IWM OctW4 137 p 21
Sell TSLA OctW1 297.5 p 20

Sell SPY Nov 235 p 51

Tue Roll some, rebalance some
Cover LMT Oct 265 p 05 for 92% gain
Sell LMT Nov 280 p 60

Sell TSLA OctW2 390 c 21
Sell TSLA OctW2 300 p 31

Cover TSLA OctW1 297.5 p 03 for 83% gain
Cover TSLA OctW1 390 c 02 for a 95% gain

Sell BRKB Nov 185 p 250
Cover BRKB Oct 185 c 256 for a 200% loss

Sell AAPL Oct 147 p 43
Cover AAPL Oct 135 p 03 for a 90% gain

Wed More adjustments, add more legs on Shopify as it drops on comments
Sell RCL Oct 112 p 25
Cover RCL Oct 100 p 02 for 95% gain

Sell SHOP Oct 125 c 25
Sell SHOP Oct 90 p 60

Sell BABA OctW2 167.5 p 24
Cover IBB Oct 290 p 05 for 95% gain

Sell TSLA Oct 310 p 62
Cover HON Oct 115 p 03 for 85% gain

Thu Sell IWM Dec 135 p 62Sell NVDA OctW4 162.5 p 68

Sell FB Oct 160 p 31
Cover QQQ Oct 133 p 03 for 83% gain

Cover BRKB Oct 170 p 02 for 95% gain
Sell SHOP OctW1 93 p 35

Sell SHOP Oct 85 p 55
Cover NVDA OctW1 145 p 01 for 97% gain

Cover NVDA OctW1 210 c 01 for 98% gain
Cover NVDA OctW1 195 c 01 for 97% gain

Sell SHOP Oct 107 c 95

Fri Sell TSLA OctW2 325 p 19
Sell QQQ Oct 142 p 13

Cover IBB Oct 375 c 05 for 85% gain
Cover BA Oct 200 p 04 for 93% gain

Sell AAPL OctW4 148 p 51
Cover TSLA OctW2 300 p 03 for 90% gain

Cover AAPL Oct 140 p 05 for a 80% gain
Sell NFLX strangle 92: Sell NFLX Oct 162.5 p 40

Sell NFLX Oct 240 c 52

Saturday, September 30, 2017

Weekly: TSLA whipsaw

This week’s whipsaw is Tesla. It dipped hard, and I covered one leg of sold puts for a huge loss, then the stock bounced. Last week was NVDA. So it goes for a trader that uses mental stops. Even with the whipsaw loss, I manage a small profit for the week. It is a bit disappointing with the market near record highs.

Going forward, there are theories about what happens next. Many portfolio managers are lagging SPY in performance for the year. The hedge fund managers don’t get paid unless they beat the index. So one theory is that they will take on that much more risk for the last quarter to try and leap frog ahead. Now what they might buy or short is another interesting question. Will they buy the leaders? The high beta stocks? The laggards? Hard to say what they will do as a group, because there are many individual managers or firms in that situation.

Here are the trades for my week (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near the end of line is price per contract, percentage gain/loss are basis the premium collected):

Mon Sell off in some leading stocks. I rebalance closer to delta neutral by hedging or selling more layers of calls.

Sell NVDA Oct 192.5 c 119
Sell FB OctW2 175 c 43

Sell NVDA OctW2 190 c 89
Sell TSLA OctW1 390 c 50

Sell BABA Oct 190 c 35
Sell TSLA Oct 400 c 106

Sell MCD Nov 170 c 30

Tue Sell NVDA OctW2 157.5 p 48
Sell IBB Nov 285 p 65

Sell AAPL Nov 135 p 81
Sell SPY OctW1 242 p 18

Wed Sell SPG Nov 135 p 60Sell AAPL Oct 140 p 19

Sell FB OctW1 157.5 p 17
Cover SPY SepW5 239 p 01 for 97% profit

Thu Cover TSLA SepW5 340 p 595 for a 1200% lossSell IWM Nov 130 p 26
Sell TLSA Oct 390 c 84

Fri Cover TSLA Oct 450 c 02 for 97% profit
Cover BA SepW5 237.5 p 01 for 97% profit
Cover FB OctW1 157.5 p 05 for a 65% profit

Sell FB OctW2 162.5 p 38
Sell FB Oct 155 p 20

Sunday, September 24, 2017

Weekly: Persnickety

The word for the week is persnickety. It means to be fussy about small details, to nit-pick, to find minor faults. It felt like that kind of week for me. I end up with a tiny plus sign, but it felt like I was losing money every day. First was a whipsaw on NVDA where I covered some calls for huge losses only to see the stock dip two days later. AAPL also caused some consternation as it dipped.

Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near the end is price per contract, percentages are based on premium collected):

Mon NVDA run up continues, stops get taken out. I take some losses.
Cover NVDA SepW4 182.5 c 590 for a 1000% loss
Cover NVDA SepW5 185 c 555 for a 3500% loss, perhaps the worst percentage of 2017. Thankfully dollar amounts are small.

I sell some way otm calls but the debit is huge
Sell NVDA Oct 240 c 20
Sell NVDA SepW5 220 c 18

Sell QQQ Oct 133 p 20
Sell BRKB Oct 175 p 84

Sell TSLA SepW5 340 p 47
Sell BA SepW5 237.5 31

Tue Sell BRKB Nov 170 p 75Sell MCD Oct 165 c 18

Sell BRKB Oct 170 p 32
Sell BRKB Oct 177.5 p 95

Wed Sell MCD Oct 150 c 33
Sell FB Oct 155 p 28

Sell NVDA OctW1 210 c 38
Sell BRKB Nov 180 p 235

Thu Sell TSLA SepW5 400 c 23
Cover NVDA Oct 240 c 05

Sell NVDA SepW5 192.5 c 34
Cover NVDA SepW5 220 c 02

Sell AAPL Oct 170 c 25
Sell AAPL SepW5 162.5 c 14

Cover AAPL SepW5 c 02
Sell NVDA OctW1 c 94

Sell NVDA Oct 202.5 c 104

Fri Sell AAPL Nov 165 c 147
Sell AAPL Oct 135 p 23

Sell BA Nov 210 p 81
Sell TSLA SepW5 380 c 46

Cover TSLA SepW5 400 c 02

Saturday, September 16, 2017

Monthly: Better and better, 65 - 5 grade A-

I count 65 winners, 5 loser for the September option cycle for my most profitable month of 2017. I am up about 2.9% for the month, up about 11.6% for 2017. Sure 11% isn’t all that when compared to the the trading unicorns and the YOLO crowd. However, for a relatively slow moving trader that is almost always hedged trader, I see it is as good news.

Here are a few etfs I track, best to worst:
EEM +30.2% emerging markets equity
GLD +14.5% gold

SPY +11.5% S&P 500, U.S. large cap
SLV +10.0% silver

TLT +6.5% 20-year Treasury bonds
IWM +5.6% Russell 2000, U.S. small cap

My trading account is right there with SPY with a gain of 11.6%.

SPY also gets an additional 1.5% in dividends (13% total return), so I am behind. That said, I feel like I am positioned at lower risk than buy-and-hold. A simliar return with what seems like less risk is a good thing. I managed profits, even though I felt like the market was due for a 5% drop in September. I did take some precautions, but didn’t let my bias get totally in the way of more profits. Like I said, this option cycle was my most profitable of the year.

I like to use the phrase, “listen to the markets.” Observe how the market responds to various event. Observe the stock market chatter online and in person. With so a lot of chatter about a sharp correction or crash, these events become less likely. Crashes tend to be rare events. Way too many newbies think crashes happen every year or two. Severe crashes are more like once every 20 to 30 years, so the time frame might be out to 2028 or later.

I plan to continue to listen going forward.While the major indexes have had a good year, there certainly have been sectors such as oil, retail, and most recently airlines that have way underperformed. Some stubborn investors have gone heavy into these laggards, and many have underperformed. There can be merit to investing in beaten down sectors. However, there is also the value trap. Investing in what seem like good values, without factoring in the secular decline in those businesses.

Weekly: more bull

Not even another missile launch could rattle the zombie bull market as it lurches forward. On Friday Nvidia broke out to the upside. I scramble to rebalance back near delta neutral. On Reddit, so many still seem to be looking for a sharp down move. Heck, I am one of them. However, I am not letting my bias get in the way of profits. The path of least resistance remains to the upside.

Here are the trades (p = puts, c = calls, sell means sell-to-open, cover means buy-to-close, number near the end is price per contract, percentages are vs. premium collected):

Mon Sell QQQ SepW4 138 p
Cover QQQ Sep 140 p 05 for 80% profit
Cover BABA SepW4 150 p 05 for 80% profit
Cover SPY Sep 235 p 04 for 90% profit

Sell SPY SepW5 239 p 36
Sell SPY Sep27 240 p 32
Sell QQQ SepW4 139 p 16

Tue Cover SPY Sep 249 c 115 for a 300% loss
Sell MCD Nov 140 p 64 add to longs on the dip

Sell SHOP Oct 80 p 20 new long

Sell TSLA strangle 215 credit: Sell TSLA Oct 300 p 154
Sell TSLA Oct 450 c 61

Wed Cover NVDA Sep 180 c 05 for 95% profit
Cover IWM Sep 142 c 54 for 325% loss

Thu Sell NVDA OctW1 145 p 22

Sell AAPL strangle for 37 credit: Sell AAPL SepW5 148 p 22
Sell AAPL SepW5 172.5 c 15

Roll BABA for 36 credit: Cover BABA Oct 140 p 15 for 70% profit
Sell BABA Oct 155 p 51

Cover GILD Sep 80 p 09 for a 25% profit

Fri Nvidia breaks out. I rebalance back to neutral.
Cover NVDA Sep 148 p 01 for 95% profit
Cover SPG Sep 165 c 05 for 90% profit
Cover BRKB Sep 165 c 01 for 98% profit

Sell BA Oct 215 p 40

Sell NVDA SepW4 165 p 23
Sell NVDA Oct 160 p 116
Sell NVDA SepW5 160 p 59

Sell TSLA SepW4 340 p 27
Sell SPG Oct 145 p 42
Sell BRKB Oct 175 p 94

Saturday, September 09, 2017

Weekly: storm clouds

Hurricane Irma follows Harvey, and a possible hydrogen bomb test in North Korea over the weekend send stocks lower. I make a few modest moves, then the market recovers on Wednesday. BRK.B and some other insurance related stocks move lower, then rally. I close out one leg near the lows. I eek out a tiny gain for the week. New positions include selling a strangle on IBB, a bull credit spread on AMZN, new long in TRV.

Here are the trades (p = puts, c = calls, number near end is price per contract, percentage gain/loss is based on premium collected, actual gains/losses tend to be much smaller because of margin requirements)

Tue Another hurricane, and a bomb test in North Korea rattle the markets.
Sell BRKB Oct 185 c 86
Sell NVDA SepW4 182.5 c 51

Sell GILD Oct 95 c 19
Sell RCL Oct 135 c 27

Sell BA Oct 270 c 18

Wed Sell NVDA Sep 148 p 29
Sell MCD Oct 145 p 35

Sell BABA SepW4 150 p 26
Sell HON Oct 115 p 21

Thu Berkshire knifes lower, probably on hurricane insurance losses.
Cover BRKB Sep 175 p 211 for a 325% loss

Sell IBB strangle: Sell IBB Oct 290 p 90
Sell IBB Oct 375 c 36

Sell GILD Sep 80 p 14

Fri Roll SPG: Cover SPG Sep 140 p 02Sell SPG Oct 145 p 99

Roll BRKB: Cover BRKB Sep 175 c
Sell BRKB Oct 180 c

AMZN vertical for 46 credit: Sell AMZN Sep 935 p
Buy AMZN Sep 915 p
Amazon continues lower so I go into the red by the end of the day.

Sell NVDA SepW4 185 c
Sell TRV Sep 110 p

Cover MCD Sep 140 p 02 for 85% gain

Cover AAPL SepW2 157.5 p 02 for 95% gain
I feel nervous about Apple and close the position with 45 minutes left.

Saturday, September 02, 2017

Weekly: bears despair

The bears had a few days of hope in August, only to see the zombie bull crush them again. I was short a bunch of strangles, so the heat got turned up, but I made money this week. Most of the weekly options are coming in safe.

The technical evidence is strongly on the side of the bulls. So despite my prediction of a correction real soon now, I am staying mechanical, instead of letting my prediction creep into bias.

Mon Roll CMG for 53 credit: Cover CMG Sep 250 p 17 for 75% profit
Sell CMG Sep 275 p 70

Sell AAPL strangle: Sell AAPL Sep 145 p 20
Sell AAPL Sep 175 c 18

Sell LMT Oct 265 p 65
Sell NVDA Sep 180 c 58

Sell RCL Oct 100 p
Sell SPG Oct 175 c 41

Sell TSLA Sep 400 c 31

Wed Sell BABA Oct 140 p 53
Sell BA Oct 200 p 56

Sell QQQ Sep 135 p 17
Sell GILD Oct 70 p 21

Thu IWM SepW4 130 p 20
Sell SPY Sep 240 p 37

Sell AAPL SepW2 157.5 p 27
Sell BRKB Oct 170 p 86

Sell QQQ Sep 140 p 29

Cover SPY Sep 217 p 05
Cover SPY Sep 217 p 05

Fri Cover QQQ Sep 146 c 20 for breakevenRoll SPY: Cover SPY SepW2 236 p 05 for 85% profit
Sell SPY SepW4 240 p 43

Saturday, August 26, 2017

Weekly: flat footed rally

The big rally on Tuesday caught me flat footed. I got whipsawed on Monday on some SPY puts. However, despite those minor mishaps, the week was profitable. Profits are good. Spent a lot of time managing BRKB, IWM, NVDA, TSLA positions. Added a new long in XME, sold new strangles in BABA, CMG. Thankfully the rally didn't roar ahead, otherwise I would have been hit on both ends.

Here are the trades (p = puts, c = calls, sell means sell-to-open, number near end is price per contract, cover means buy-to-close):

Mon Cover SPY AugW4 242.5 p 136 for a 400% loss
Sell TSLA AugW4 262.5 c 28
Sell NVDA SepW2 175 c 73

Roll IWM: Cover IWM Sep 146 c 01 for 90% gain
Sell IWM Sep 142 c 15

Sell SPY AugW4 237 p 13
Sell TSLA SepW1 372.5 c 49
Sell SPY SepW1 234 p 24

Tue Big time market rally catches me flat footed. I add long delta via selling puts

Sell SPY SepW2 236 p 35
Sell BRKB Oct 165 p 52

Cover TSLA AugW4 385 c 02 for 94% profit

Roll BRKB for 167 credit: Cover BRKB Sep 180 c for 225% loss
Sell BRKB Oct 180 c 349

Sell IWM SepW1 131 p 19
Sell SPY Sep 235 p 54
Sell QQQ SepW1 138 p 17

Sell BRKB Sep 175 p 52
Sell TSLA SepW1 300 p 47

Wed Sell NVDA SepW2 148 p 55

Sell BABA strangle 64: Sell BABA Sep 152.5 p
Sell BABA Sep 195 c

Sell CMG strangle 120: Sell CMG Sep 250 p
Sell CMG Sep 340 c

Sell TSLA Sep 310 p 162

Thu Sell SPG Oct 140 p 74
Sell XME Oct 27 p 21