Don’t do anything stupid

The market roars up four days in a row, up about 2% for the week. I am left at the train station, mostly left behind by the rocket rally. The phrase that comes to mind is “don’t do anything stupid.” Meaning, don’t chase the rally, don’t ignore it either, don’t stand in front of the train. What does that leave? A few measured moves, waiting for good setups post-earnings.

Yes, we would all like to be brilliant traders, able to ride every move, but reality is not that way for me. My predictions are about like coin-flips, and I would have guessed down, if I had to guess a direction for the first week of the year. Thank goodness I didn't do that. As is, I eek out a small profit for the week and regroup for the upcoming earnings.

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

Tue Tech stocks lead the way higher on the first day of trading in 2018.

Sell FB Sell Jan 170 p 35
Sell NFLX Jan 230 c 19
Sell NFLX Jan 182.5 p 65
Thu QQQ backratio for credit
Buy QQQ Mar 150 p 127
Sell 2x QQQ Mar 145 p 81 each

Fri The 2018 rocket launch rally continues for a fourth day. It gets uncomfortable in some calls I sold. I eek out a small gain for the week, but the opportunities were so much greater than the result.

Sell BA Jan 235 c 18
Sell FB Jan 175 p 31

Sell IWM Feb 140 p 28
Sell NFLX Jan 190 p 36

Sell NFLX Jan 190 p 38
Sell QQQ Feb 145 p 27