Weekly: Crash helmet on

Monday felt like the prelude to a crash. When my account went to -10% for the day, I put on my crash helmet. I got stopped out on some positions (mental stops), and closed some more positions. The market didn’t crash on Tuesday. Instead, a massive three day rally got me all of the loss back and then some, even with a defensive stance (vs increasing risk, aka as gambling, to try and make back the huge loss).

Rule #1 is to live to trade another day. Even though the market was way oversold on Monday, I didn’t want to risk another big down day on Tuesday, that might have resulted in margin calls. A big gap down would have been especially difficult. So I took my lumps and regrouped. As it turned out, I rolled up with the rally. It felt like at least a short term low was in. I saw more than a few people online saying that they were cashing in, or getting out. Capitulation kind of behavior, with some almost proud to be 80% cash. A lot of people were like me, duck and cover. However, many are still in that mode, missing the massive rally off the lows.

I didn’t trade particularly well, but by taking the middle road and closing some positions at profit to mitigate risk, I had a positive week, despite near panic at the Monday lows.

Sat TSLA Oct26 300 calls assigned over the weekend. I sell shares at 300. I count this as a loss.

Here are the trades from a wild week (p=puts, c=calls, number near the end is price per contract).

Mon Another really bad day for me. Down 10% at the worst levels, I cover some positions, in the interest of self presentation. I am down approximately 20% for calendar October. 8% might be a whole year of premium selling in a low volatility environment. Well, we are not in Kansas any more. So I took my 8% hit. It is a frightening day, as I close some positions before they reach their stops. Again, at -10% for the day, it is time to save the ship.

Rule #1 Live to trade another day (yes, its worth repeating).

Cover AMZN Nov 1750 c 680 profit
Cover AMZN Nov9 1475 p 5080 huge loss

Cover SPY Nov 262 p 616 big loss
Cover TSLA Nov9 270 p 158 profit

Cover AMZN Nov 1400 p 2755 huge loss
Cover TSLA Nov 250 p 178 profit

Cover PANW Nov 180 p 830 huge loss
Cover NVDA Nov2 185 p 820 huge loss

Cover TSLA Nov23 285 p 575 profit
Cover TSLA Nov9 300 p 440 profit

Cover NFLX Nov290 p 16.70 huge loss

Buy TSLA shares at 344.58

Sell AMZN Nov9 1200 p 195
Sell TSLA Nov9 400 c 84

Roll AMZN Cover AMZN Dec 2000 c 349 profit
Sell AMZN Dec 1900 c 696

Sell AMZN Nov 1775 c 520

Sell AMZN Nov2 1750 c 90

Sell BA Dec 400 c 146

Sell AMZN Nov9 1800 c 255
Sell NFLX Nov 210 p 140

Sell AMZN Nov 1750 c 890
Sell TSLA Nov30 285 p 615

Sell AAPL Nov2 187.5 p 40
Sell TSLA Nov 300 p 585

Tue The market closes near its highs for the day. I climb out of the cellar of the -8% Monday with a +3% Tuesday.

Sell FB Nov2 119 p 41 pre-earnings
Sell TSLA Nov30 375 c 685 daytrade sell 675 profit

Sell AMZN Nov9 1750 c 275 daytrade sell 245 profit
Sell SPY Nov 239 p 63

Sell AMZN Nov2 1700 c 70
Sell TSLA Nov9 350 c 470

Sell SPG Nov 175 p 101
Sell NVDA Nov2 150 p 15

Sell TSLA Nov9 275 p 168
Sell TSLA Nov23 385 c 315
Sell TSLA Nov 390 c 170

Cover AMZN Nov 1775 c 355 profit

Wed Two up days in a row for the first time all month. With a 3.6% gain, during the past two days, I have almost made back the big loss on Monday.

Cover AMZN Nov 1875 c 168 profit
Cover AMZN Nov2 1750 c 34 profit

Cover TSLA Nov23 385 c 298 profit
Cover AMZN Nov9 1800 c 127 profit

Sell TSLA Dec 250 p 530

Sell TSLA Nov 295 p 750
Sell PAYC Nov 145 c 30

Sell SPY Nov23 240 p 39
Sell QQQ Nov30 150 p 68

Sell NFLX Nov23 250 p 242
Sell AMZN Nov23 1450 p 1345

Roll BA 129 credit: Cover BA Nov 300 p 60 profit
Sell BA Nov 325 p 198

Roll AMZN 179 credit: Cover AMZN Nov9 1200 p 50
Sell AMZN Nov9 1350 p 229

Sell SPY Nov30 242 p 77
Sell FB Dec 115 p 38

Sell MSFT Dec 90 p 65
Sell AMZN Nov 1300 p 325

Thu Third up day in a row. After the close Apple earnings disappoint. I cover some Amazon calls. After being given a reprieve on the decline, I don’t want to risk a big loss that could come with a fourth big up day.

Cover AMZN Nov2 1700 c 465 big loss
Cover AMZN Nov 1950 c 76 profit

Cover AMZN Nov2 1800 c 10 profit
Sell TSLA Nov9 305 p 197

Roll TSLA 485 credit:Cover TSLA Nov30 285 p 451 profit
Sell TSLA Dec 305 p 926

Sell SPY Nov 254 p 53

Roll AMZN 167 credit: Cover AMZN Nov9 1350 p 77

Sell AMZN Nov9 1450 p 244

Sell TSLA Nov23 280 p 303

Sell TSLA Nov 290 p 320

Sell TSLA Nov9 295 p 187

Fri Cover AMZN Dec 2300 c 91 profit
Cover SPG Dec 150 p 64 profit

Sell AMZN Nov23 2000 c 118
Sell AAPL Nov 230 c 29

Sell BRKB Dec 180 p 72

Sell SBUX Dec 55 p 22 earnings

Roll AMZN: Cover AMZN Nov 1300 p 72 profit
Sell AMZN Nov 1450 p 310

Roll BA: Cover BA Dec 295 p 112 profit
Sell BA Dec 330 p 364