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

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