Friday, March 30, 2018

Weekly: The rabbit hole called AMZN

I feel like Alice in Wonderland as I venture down the rabbit hole of Amazon. I came into the week with a butterfly, a near delta neutral position with limited risk. On Monday, I sold some AMZN puts naked. I spent the rest of the week doing damage control, suffering terrible draw downs. The selling of puts, even though high probability, weren’t a wise move. Not with the markets so crazy.

By the end of the week, I am up 3%, I’d say it was mostly luck. I closed some legs on various stocks, for losers as the market gyrated up, down and all around.

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):

Mon Markets rally as trade tensions ease. I scramble to stay long.
Sell BRKB May 175 p 129
Sell TSLA Apr 350 c 125

Sell INTC Apr 46 p 24
Sell AMZN Apr 1200 p 270


Sell CAT Apr 120 p 32
Sell BRKB Apr 180 p 62


Sell AAPL Apr 150 p 38
Sell SPY May 230 p 107


Sell QQQ May 140 p 85
Sell IWM May 130 p 54


Sell AMZN May 1250 p 1160

Tue A demoralizing day for me. The Monday rally turned out to be a massive head fake, especially for some tech stocks. I lose virtually all of Monday’s gains. The big losers include: Tesla, Amazon, Nvidia, QQQ. I add delta on Apple, Boeing, cover some calls on Berkshire, then the market turns sour.

Cover BRKB Apr 200 c for gain, but it was part of a complex position
Sell AAPL Apr 160 p 88


Sell BA May 270 p 235
Sell AMZN Apr 1750 c 190


Sell AMZN Apr 1700 c 380
Sell NVDA Apr 260 c 108

Sell NFLX AprW1 340 c 51
Sell QQQ May 175 c 54


Sell INTC Apr 57 c 16
Sell IWM May 164 c 40

Sell BA Apr 360 c 120
Cover TLSA MarW5 285 p 1069 for loss


Wed Down the rabbit hole I go. Declines in AMZN, NFLX and others leads to another bad day. I finish down 1.9%. Yikes.

Sell AMZN Apr 1600 c
Sell AMZN May 1750 c 1085


Cover QQQ Apr 158 p 481 for loss

Thu A relief rally before the market holiday on Good Friday. I am up 4.7% for the day. I end the week up about 3% for the week. Still down about 4% for 2018.

Sell AMZN Apr 1600 c 765
Sell COST May 170 p 114


Sell FB Apr 135 p 49
Sell NVDA Apr 180 p 37


Cover AMZN Apr 1600 c 550 for profit
Cover AMZN Apr 1600 c 690 for profit



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