I
did okay during this extremely volatile week. For those not following
the action closely, Monday the stock market tumbled, only to see it
recover all those losses and end higher for the week. Thursday and
Friday completely routed the bears. As always with options, could
have been better, could have been worse. A few trades look stupid, so
there is a lot of room for improvement. Here's a recap:
Fri
Sell BRKB Mar 105 puts rebalance @111.4
Berkshire
Hathaway continues to bounce back, and I add more deltas to my
complex position via selling another round of puts.
Sell
KORS Mar 80 puts rebalance @93.5
Michael
Kors rallies a bit and add delta to my complicated position.
Thu
Sell DIS Mar 67.5 puts @75.8
I
open a new long position in Disney. DIS up on earnings.
Sell
to close SPY Feb 169 puts @176.5
These
puts are down to about a 15% chance of coming into the money. They
are part of a put backratio (still short 2x Feb 166 puts), so I add
to my risk and eat up some margin too.
Sell
BRKB Mar 100 puts rebalance @110.0
I
add some long delta to a complicated Berkshire Hathaway position,
rebalancing as the stock rallies.
Wed
Sell BRKB Mar 115 calls to rebalance @108.5
I
reduce the delta on my long position on Berkshire Hathaway
Sell
KORS Feb 100 calls to offset @89.6
Sell
some way out of the money calls on KORS for a tiny premium. The
frustrating thing is that if I had just sat through the turbulent
morning yesterday, I would be in an okay position. Instead, I locked
in a loss, and am at the risk of more losses by being long stock. Ah
well, if I knew every wiggle on the chart ahead of time, I would be
rich beyond Midas.
Cover
short AMBA Feb 24 puts @.55 @26.6
Ambarella
falling fast. I cover the short put leg of the strangle so the entire
trade doesn't turn into yet another loser. This leg is at a tiny
loss, but it is offset by the premium from selling Feb 42 calls.
Sell
KORS Feb 80 puts rebalance @.20 @91.4
KORS
rebounds off the lows, I rebalance for the second time today
Tue
Buy KORS stock to compensate for being short Feb 90 calls @92.5
I
am short calls going into earnings and Michael Kors shoots the moon
and gaps up to over 92. Yikes. The options trade at a wide spread, so
I decide to cover by buying the stock, capping the loss at $2.50 per
contract. However, there is the risk is that it fades the gap and
goes below 90. I didn't want to dilly-dally in case it gaps higher
and keeps going. It is an uncomfortable position to be in. It is
already fading as I type to below 91.0. These kind of situations
remind me why I don't do well in fast markets, don't do well day
trading. My streak of red continues as KORS closes under 90 for the
day.
Mon
Cover BRKB Feb 110 puts @113.3
cover
TM Feb 110 puts @1.88 @112.2
I
take two more big losses on Toyota and Berkshire as the stock market
careens lower. I didn't want to risk being short puts on Toyota going
into earnings. Earnings came out pretty good, so this was a bad one.
net
short AMBA BA BRKB TLT XRT XOP
net
long ASH GLD GS IWM KORS OXY SPY
net
neutral AMGN
long
DAL DIS LGF MRK PG TM WFC
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