(11 votes, average: 3.73 out of 5)
Loading ...At least that is what I’m setting up for, continuing Friday’s theme…
Conditions are similar to the last week of September, when I also loaded the boat with puts and had several major winners… Â Now,overall, those trades kicked my ass, but much of that was due to shortcomings in my system as well as egregious oversights, such as not protecting profitable positions via breakeven stops. Â With my newly improved (sell) rules and a fresh dedication to proper stops, I’m confident of banking some coin should we get a pullback lasting more than 4 hours.
The shopping list for tomorrow is no less than 18 names long and includes calls in the d/tiETFs of FAZ, FXP, SDS, SKF, SMN as well. Â The put candidates are as follows (I’ve bolded and included the entry/trigger price on the ones I like best, although I do have standing orders on all of them):
BX (@ 16.), CRM, EEM, ESV (@ 46.59), FXI (@ 43.), INTU, IP (@ 23.70), IR, JWN, PCX (@ 13.), PPG, VMW, XLF (@15.)
That being said, futures are slightly positive right now (and climbing!) and should that carry through to tomorrow, I doubt any of my entry price points will get hit. Â In that case, I will just tend to my current opens…which, thanks to Friday’s whipsaw (which took out several long calls at breakeven and added a few puts), are slightly bearish overall (6:5 puts vs. calls):
Oh…as far as the $CPCI-system goes, there is no new entry for tomorrow. Friday’s reading was a mellow 1.32.
No active positions in the system either, as the Nov 109. puts were sold at Friday’s close for a ~10% loss, bringing the overall W-L record to 23-8, but 5-5 in the last 10…
So never mind about all this. A whole lot of effort for nothing.
AAPL & GS puts have stopped out at just above breakeven and most calls are busting higher, led by NUE. Booked TBT for a smallish 20%. X continues to suck…wtf!?
X is still in it’s uptrend. Give it time and it’ll catch up.
Took a 2nd look at my account near the close and it turns out that I got filled on the FAZ calls earlier. Goddamnsonofabitch!
Also took down some BX puts in the afternoon as the stock fell under $16.
Thankfully those AAPL puts were stopped out earlier in the day. In fact, in hindsight, not buying some AAPL calls for earnings was a horribly easy opportunity missed. Oh well.
AAPL options sellers have won 5 out of the last 7 earnings. Don’t feel bad for not buying more, it’s not a bet I would have taken either.
’tis true.
Of course, this earnings season, with multi-month/year low volatilities across the board, it’s probably better to be the buyer. Juicy premiums are few and far between…
I’m more concerned about getting poleaxed on those FAZ calls. There’s a guaranteed 1% total account value thrown into the wind.