Weekly: Last FAANG standing

What a crazy week! I lose 6% this week. Tesla then Amazon, then the rest of the market are the culprits. I am right around break even for the year. Trading activity doesn’t always mean profits. SPY is right near break even for the year as well. The good news is that I survive some unpleasant surprises. It could have been a lot, lot worse, given the risky nature of selling naked options.

Rule #1 Live to trade another day

The subject line is last FAANG standing. Right now it is Apple. The others: Alphabet, Amazon, Facebook, Netflix all fell more than 20% from their highs. Apple reports soon. There are still a few stocks doing okay, such as Boeing, Microsoft, McDonalds. Banks have rolled over with the market. Most foreign markets are down for the year.

Mon Sell SPG Dec 140 p 60

Sell BRKB Dec 170 p 48
Sell COST Dec 195 p 84

Sell AXP Nov 95 p 25
Sell TSLA Nov2 350 c 40

Sell SPY Nov 288 c 28
Sell NFLX Nov9 380 c 97

Tue Another ball-buster day for me, down 2%. I get whipsawed out of two positions during the morning lows, then Tesla burns me bad. Noted short-seller Citron says they are now long TSLA. Ouch.

Cover IWM Nov 150 p 416 big loss

Cover SPY Oct26 272.5 p 396 big loss
Sell TSLA Nov 200 p 242

Sell TSLA Nov2 235 p 293
Sell NVDA Nov2 250 c 42

Sell COST Dec 260 c 48
Sell AAPL Nov 245 c 54

Sell BRKB Dec 230 c 51
Sell FB Nov 185 c 27

Sell AMZN Nov 2200 c 219
Sell NFLX Nov 400 c 45

Wed Bad turns into worse as I lose about 8% by the close. I take an additional hit after the close when Tesla reports good earnings.

Cover NVDA Oct26 210 p 615 big loss
Cover FB Oct26 150 p 272 big loss

Cover QQQ Nov 168 p 526 big loss
Cover SPY Nov 268 p 592 big loss

Sell AMZN Nov2 2050 c 239
Sell BRKB Nov 220 c 33

Sell QQQ Nov 184 c 25
Sell SPY Nov 285 c 45

Sell NVDA Nov2 240 c 40
Sell AMZN Dec 2300 c 261

After hours bot TSLA shares @316.75
another lot at 330.67

Yikes!!!!!!!

Thu Big rally day. I make back all of Wednesday’s loss. Then after hours, Alphabet and Amazon report poor earnings. We will see what Friday brings. I did a lot of Tesla trades. Mostly my timing was poor, but I survived the surprise earnings report (moved up by 2 weeks) and the big gap move. Even with poor execution, my middle road let me survive.

Cover QQQ Dec 193 c 27 profit
Cover NVDA Nov2 240 c 29 profit

Cover AMZN Nov 2200 c 190 profit
Cover AMZN Oct26 2250 c 05 profit

Cover TSLA Nov 375 c 225 daytrade profit
Cover TSLA Nov2 330 500 daytrade profit

Cover SPY Nov 285 c 33 profit
Cover QQQ Nov 185 c 19 profit

Roll TLSA for 141 credit Cover TSLA 225 p 200 profit
Sell TSLA 245 p 341

Roll NFLX for 55 credit Cover NFLX 400 c 26 profit
Sell NFLX 375 c 81

Sell TSLA Nov23 225 p 234

Sell TSLA Nov23 375 c 233
Sell TSLA Nov 360 c 305

Sell TSLA Oct26 335 c 59
Sell TSLA Nov9 340 c 505

Sell TSLA Nov 375 c 288
Sell TSLA Nov2 330 c 620

Fri Cover BRKB Nov 200 p 495 big loss
Cover NVDA Nov2 250 c 03 profit

Cover QQQ Oct26 165 p 136 loss
Sell TLSA Nov 250 p 254

Sell BRKB Nov 185 p 110
Sell AMZN Dec 2000 c 705

Sell SPG Dec 150 p 77
Sell QQQ Dec 190 c 25

Sell AMZN Nov2 1800 c 230
Sell BA Nov 400 c 80

Sell LOW Nov 105 c 28
Sell MSFT Nov 120 c 15

Sell NVDA Nov2 230 c 34
Sell NFLX Nov 360 c 110

Sell TSLA Nov2 285 p 150
Sell TSLA Nov 265 p 320

Sell BA Dec 295 p 213
Sell AMZN Nov2 1450 p 239

Sell TSLA Nov9 300 p 585
Cover TSLA Oct26 335 c 254 big loss

Roll TSLA 350 credit: Cover TSLA Nov 265 p
Sell TSLA Nov23 285 p

Roll TSLA 545 credit: Cover Nov23 245 p
Sell TSLA Nov30 275 p

Sell AMZN Nov9 1475 p 649

Sell TSLA Nov 270 p 310
Sell TSLA Nov30 385 c 395

Sell TLSA Nov 370 c 400
Cover AMZN Oct26 1600 p 107 profit

Sell TSLA Nov30 400 c 438
Sell AMZN Nov 1875 c 445

Monthly 81-9, Grade C-, weathering the storm.

I lose a bit over 5% this month. Grade C- because of the big loss. However, market conditions were difficult for many boats. I count 81 winners, 9 losers for the October option cycle.

Unfortunately, many of the losers were huge, and almost all the winners small or tiny. So despite a high win percentage, the losses out weigh the gains, and I have a negative month. Amazon, Facebook, Nvidia are some of the losers. For the most part, I stay within my rules. One winner was Tilray. Selling way, way otm options worked this time.

Here are some etfs year-to-date:
SPY +3.8% S&P 500 US large cap
IWM +0.6% Russell 2000 US small cap

GLD -6.2% gold
TLT -10.4% US Treasuries 20 year

SLV -14.1% silver
EEM -15.8% Emerging market equity

My account +6.2%. So respectable. It is telling that almost everything is down now. Only SPY has a reasonable return for the year. QQQ is not on the list, but is still up for the year.

I wish I knew what was coming next. The sentiment still doesn’t feel like a top, but corrections can happen at any time. This recent slide came on no real news. The reasons cited have been out there for months now. Netflix boomed higher on earnings day, and has given all that back. That is not bull market action, so caution is reasonable. That said, so many pundits and newbies seem obsessed with a crash, that a crash is extremely unlikely. What is more likely is the recent meat-grinder action where both bulls and bears might lose money, if they are positioned wrong.

Weekly: another frustrating week

Bulls and bears have things to be happy and sad about. A booming rally gives way to selling later in the week. Overall, the market moved higher, but coming off the big slide the prior week, it wasn’t as much as some had hoped. My week ends with frustration as my mental stop levels on Nvidia. I take more losses.

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 fade into the close. A break even day for me.
Cover FB Oct26 175 c 05 for profit
Cover NVDA Nov2 300 c 04 for profit

Sell NVDA Oct26 265 c 44
Sell NVDA Oct26 270 c 38

Sell QQQ Oct26 182 c 25
Sell SPY Oct26 286 c 26

Tue The bull empire strikes back. A buying panic, with the market gaining strength all day long. I cover some calls, sell some puts. Take a small shot at Netflix pre-earnings. I am up about 3.7% today. Woohoo.

All these calls closed for profit:
Cover TSLA Nov 375 c 150
Cover SPY Nov 296 c 17

Cover AMZN Nov 2200 c 340
Cover SPY Oct26 288 c 19

Cover NVDA Oct26 270 c 28
Cover QQQ Nov 190 c 18

Cover FB Nov 190 c 30
Sell NVDA Oct26 210 p 51

Sell AMZN Oct 1650 p 80
Sell NFLX Nov 225 p 108

Sell TSLA Oct 245 p 31
Sell TSLA Oct26 230 p 93

Sell COST Nov 200 p 37
Sell AMZN Dec 1350 p 670

Sell IWM Dec 135 p 68
Sell QQQ Dec 148 p 89

Sell SPY Dec 240 p 129
Sell UNH Nov 240 p 57

Wed Roll NFLX for 123 credit: Cover NFLX Nov 225 p 32 profit
Sell NFLX Nov 290 p 155
Sell UNH Nov 290 c 18

Thu The bears get a day.
Cover AMZN Oct 1650 p 72 for profit
Cover AMZN Oct 2300 c 167 for profit
Cover AMZN Oct26 2050 c 310 for profit

Sell AMZN Dec 2500 c 153
Sell NFLX Nov 425 c 59

Sell NVDA Nov2 275 c 27
Sell IWM Dec 175 c 19

Sell SPY Dec 300 c 38
Sell QQQ Dec 193 c 39

Sell TLRY Nov 310 c 40
Sell GOOGL Nov 1300 c 150

Fri My stops get run on Nvidia.
Cover TSLA Oct26 350 c 05 profit
Cover NVDA Oct 230 p 218 loss
Cover NVDA Nov2 230 p 930 big loss

Sell NVDA Nov2 185 p 80
Sell PYPL Nov 70 p 22 earnings
Sell NFLX Nov2 390 c 34

Weekly: Hurricane damage

First of all, thoughts and prayers for all those that suffered during the massive hurricane. Those kind of life changing events make stock market gyrations seem small in comparison. That said, it was a market storm this week. By the close Thursday wiped away all my gains for 2018. I take the biggest dollar loss in one transaction, in quite some time covering some sold Amazon puts for a 1000% loss on a large dollar amount.

Choose whatever cliché or metaphor you want. Live by the sword, die by the sword. Picking up nickels in front of a steam roller, and getting flattened. Friday’s relief rally places me back in the plus column for 2018, but overall down about 5% for the week. I am sure a few accounts got blown up by the market action. On the Internet, it tends to be winners (and liars) that tell tales.

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

Columbus Day means bond markets are closed.
Mon Sell ABMD Oct 500 c 60

Sell BRKB Nov 240 c 35
Sell FB Nov 190 c 53

Sell TSLA Nov 350 c 205
Sell AMZN Oct 2050 c 270

Tue Cover BABA Oct 172.5 c 05 for profit
Sell BABA Nov 185 c 39

Sell TGT Nov 75 p 19
Sell AMZN Nov 1400 p 414

Sell FB Nov 125 p 36
Sell LOW Nov 90 p 23

Wed A hard down day. I lose 8%+, one of the worst days of the year. One of the worst in a while. Most of the year’s gains are now gone. I am still up for 2018, but not by much. Three legs breach the mental stop levels of the option price, several more are threatened.

Cover PAYC Oct 130 p 360 big loss

Cover FB Oct 155 p 320 big loss

Cover FB Oct 177.5 c 05 small profit

Cover PYPL Oct 77.5 p 263 big loss

Cover AMZN Oct 2500 c 05 for profit

Cover GOOGL Oct 1250 c 20 for profit

Sell QQQ Oct 184 c 14

Sell SPY Oct 293 c 14

Sell TSLA Oct 310 c 63

Sell FB Oct26 175 c 22
Sell AMZN Nov 2300 c 440

Sell FB Nov2 185 c 39
Sell NVDA Nov2 300 c 36

Sell AMZN Oct26 2150 c 375
Sell PANW nov 250 c 41

Sell PYPL Nov 95 c 13
Sell SPY Nov 296 c 47

Sell AAPL Oct26 242.5 c 24
Sell QQQ Nov 190 c 30

Sell GOOGL Nov 1375 c 81
Sell AMZN Nov 2200 c 655

Thu I lose another 2.9%. I am now negative for 2018. I book many more losses. Schaeffer’s Research says 75% chance that the market rebounds. That leaves 25% chance for more downside. With naked puts, I can’t take that chance.

Cover GRUB Oct 115 p 400 for big loss
Cover SPY Oct12 275 p 228 for big loss
Cover IWM Oct 155 p 253 for big loss
Cover AMZN Oct26 2150 c 230 for small daytrade profit
Cover AMZN Oct 1750 p 6210 whopper loss

Sell SPY Oct26 288 c 34
Sell QQQ Nov 185 c 40

Sell NVDA Nov 275 c 40
Sell PAYC Nov 175 c 26

Sell BRKB Oct 220 c 25
Sell NVDA Oct 272.5 c 15

Sell IWM Nov 170 c 15
Sell AMZN Oct26 2050 c 525

Fri No trades. My account gains about 5.7% on this relief rally. Of course, I would have been better off closing some of the losers after the bounce. If I knew better, I’d do better. Hindsight is 20-20. Best to follow the plan in place during turbulent times. Rule #1 Live to trade another day. One way I do that is to take losses.

Weekly: Two hard down days AMZN FB TSLA drop

I lose about 1.8% for the week. Tesla did most of the damage. Facebook, Amazon also were red factors. Higher yields on Treasury bonds are widely cited as a factor. It is also October during a mid-term electdion year, and markets are often turbulent in that time frame.

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 Tesla and Tilray leap higher. I adjust by selling more puts
Sell TLRY Nov 50 p 70

Sell TSLA Nov 225 p 550
Sell TSLA Oct 240 p 184

Sell SPY Nov 268 p 69
Sell QQQ Nov 168 p 64

Tue I reduce delta in Facebook as it continues to fall.

Sell FB Oct26 180 c 30

Sell FB Oct 177.5 c 25

Sell PYPL Nov 70 p 19
Sell MSFT Nov 97.5 p 28

Wed Sell AAPL Nov 195 p 59
Sell TSLA Nov 420 c 75
Sell TLRY Nov 500 c 40

Thu Down dog kind of day. I take on some water. Mostly, I sell calls. I do dip my toe on the long side by selling puts on BABA and NVDA.

Cover TSLA Nov 420 c 52 for profit.
Sell BABA Nov 125 p 58

Sell SPG Nov 190 c 20
Sell NVDA Nov 230 p 56

Sell AMZN Oct 2225 c 99
Sell TSLA Nov 400 c 87

Sell TSLA Oct 350 c 71
Sell SPY Oct26 298c 20

Sell FB Nov 200 c 38
Sell AMZN Nov 2400 c 480

Fri Another mostly down day, with Tesla being hit hard. I sell a bunch of out of the money calls.

Sell COST Nov 250 c 20
Sell MSFT Nov 130 c 12

Sell BA Oct 420 c 29
Sell NVDA Oct 300 c 35

Sell BABA Oct 172.5 c 15
Sell AAPL Nov 260 c 49

Sell IWM Nov 175 c 16
Sell AMZN Oct26 2250 c 320

Sell GOOGL Oct 1250 c 125
Sell FB Oct 172.5 c 28

Sell QQQ Nov 193 c 34
Sell QQQ Oct26 190 c 23

Sell TSLA Nov 375 c 157
Sell TSLA Oct 325 c 85