Today, I closed out three positions I had in my portfolio (GDX, MAR, and VXX). Two of these positions were placed only last week. Sometimes when it works in your favor, you've to remember to take profit. VXX tracks the Volatility Index (VIX) futures. Meaning with the VXX, I'm shorting the market. I also initiated a long position in TSLA (Tesla) as it continues to drop. I thought this would be a great entry point.
Happy Friday! I closed out of my Amazon earnings play for a nice profit. I further bought into and sold out of my put positions in Amazon. Eventually, I bought a delta long strangle in Amazon. My expectation is that Amazon will move higher toward the holidays. I sold out of Chipotle and Marriott International for a profit. I bought back Marriott International when it dropped as it was up earlier in the day. I initiated a new position in CVS as it dropped 5%. CVS will report earning in the next two weeks so volatility will likely be elevated.
I was very busy most of the trading hours today. I made only a couple of trades. I bought back into GDX (Gold Miners) when it dropped 50 cents and sold a covered call on Bristol Myers Squibb, against an existing long position, when it popped 7% after releasing earning in the morning. My order in Google for an earning's play was not filled as the volatility continue to drop throughout the day. I look forward to closing my Amazon position tomorrow for a profit, even though it dropped 5% after hours from earning. I also look to take a long position in Amazon for the December contracts. Good night folks!
Happy Hump Day! I placed most of these trades when I woke up this morning. I sold into strength the following option contracts in Apple, Amazon, Google, Chipotle, Southwest Airlines, Marriott International, and my existing short positions in SPY. With SPY dropping 1% in the morning, I took profit and when it bounced to positive in the afternoon, I re-entered my short positions in SPY with a longer duration. I took profit and sold out of Apple, Google, and Southwest Airlines in the afternoon. Google will report earning after the market close tomorrow, so does Amazon. I like both Amazon and Google around toward the end of the year but at the same time, I'm a bit cautious as they are at 52-week high, which made me a bit nervous. With oil futures continue to drop, I further rolled down my call contracts.
I looked at the market and my positions a few times per day, looking to either add new positions, adjust my existing positions, and/or take profit which is my favorite part. I was tempted to buy into UA (Under Armor) when it dropped almost 15% but decided to pass. A stock that dropped this much, typically has further to fall so I'll patiently look for better entrance point or move on to other opportunities. I sold out of my gold miners position when it popped almost 5%, eventually making a profit. It was in the red for the past few weeks. I added a position in LLY (Eli Lilly) when it dropped $1 dollar this morning after earning. As you can see, LLY is actually up for the day but I'm showing in the red for $22 dollars. This is because the volatility actually moved up a bit. LLY is not a liquid underlining and I typically stay away from these illiquid assets. Unless, of course, I don't mind owning the stock, which is the case with LLY. With biotech taking a beating for the past few months, I thought this would be a great entry point. With oil futures dropping, I'm now long delta so I moved the call legs down so I'm slightly long or neutral delta (not shown).
I'm very light in my trading and existing positions. I do not see a lot of opportunity as we continue to stay near market top. Both CMG (Chipotle) and APPL (Apple) dropped after hours with earning announcements. I'll monitor and perhaps add new positions tomorrow. Good night!
Today was a good day to take profit as we're at market high and heading toward earnings. I took profit on a number of positions including my love for Marriott International and some oil futures (not shown below). With Priceline, I rolled up the put position early in the morning and later sold out of the strangle.
SLB dropped almost 5% after earning. I like SLB and would not mind owning at $75.12. This trade is also used to counter my oil futures which I'm slightly short.
T's IV shot up to 100% today because of VZ's earning shortfall and/or awaiting some other impending news, so I entered this trade. Earning is scheduled after the market close on 10/25. VZ came out with not too great earning this morning and its stock dropped almost 5% with IV rank still elevated. I just had to enter this trade, look for IV contraction in the coming days.
I placed the first leg of the trade (1500 Call) yesterday when PCLN went up $18-19 dollars. Today, I placed the other leg (1415 Put) when it dropped almost $10. Now, I've a strangle on PCLN. I think PCLN will be range bound until EXPE (Expedia) earning on 10/27. I plan to take this off the table early next week.