Friday, June 09, 2017

Weekly: Rule #1, Bat vs. Bat, and the Wrecking Ball

The pop song Wrecking Ball is the theme for this week. As the long rally in the big name tech stocks reverses in spectacular fashion on Friday. I suffer some losses, but am glad I tend to be such a cautious trader. Action like this was inevitable. Only unicorns and liars are able to buy the bottoms and sell the tops. I am neither. 

More than a few do the opposite Bat junior on Tastytrade called the exact top within a few minutes with his abysmal timing. Here the links to the two Tastytrade episodes: Link1 is the Thursday show with NVDA still moving up, and Link2 is Friday after the whipsaw crash move. For those that don't do links the message is to stay mechanical. Limit your losses, no matter what the market is doing.

For me, it boils down to:

Rule #1: Live to Trade Another Day

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

Mon Sell NVDA Jun 134 p 32
Sell QQQ Jul 132 p 35
Sell BRKB Jul 160 p 79
Sell ULTA Jun 300 p 60
Sell ULTA Jul 285 p 90
Tue I close a few more positions for profit. I am getting whipsawed in ULTA, TSLA and more.
Cover CAT Jun 90 p 03
Cover FB Jun 140 p 04
Cover TSLA Jun 260 p 04
Cover BRKB Jun 150 p 01
Sell TSLA JunW4 310 p 84
Sell SPY Jul 225 p 54
Thu Damage control on NVDA and TSLA as they continue up
Cover TSLA Jun 275 p 05
Cover IWM Jun 129 p 05
Cover NVDA Jun 125 p 05
Sell NVDA Jun 143 p 42
Sell TSLA Jun 335 p 87
Sell IWM Jul 129 p 47
Sell NVDA Jul 130 p 87
Sell NVDA Jul 200 c 50
Buy NVDA shares 1/2 unit 155.18
Sell NVDA Jun 145 p 49

Fri Holy whipsaw Batman! Flash crash in some big name tech stocks, whipsaws more than a few. I keep dancing, but the music is way too fast for me to keep up. I suffer modest losses.
Cover JPM Jun 77.5 p 02
Cover BRKB Jun 155 p 01
Cover BRKB Jun 170 c 88
Roll IWM: 
Cover IWM Jul 125 p 20
Sell IWM Jul 132 p 50
Sell NVDA Jun 170 c 58
Sell NVDA JunW4 180 c 68

Sell AAPL Jun 157.5 c 21
Sell TSLA JunW4 400 c 117
Sell QQQ Jul 148 c 27

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