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

No comments: