Day 108
We are now back to regularly scheduled programming? Well maybe not for tech sector, since QQQ still seems to still have some pace!
Market Recap
SPY gained just over half a percent and QQQ moved up by ~2.3%.
SPY is at ~$713, and QQQ is on ~$664.
VIX is around ~19 now.
Trading Update
I closed positions in the following:
- SLV
- NOW
- SPX
I closed the call leg of a strangle I had sold on SLV, after I had received ~30% of the overall premium back. Here is the timeline.
The next trade I was trying was a 7-DTE SPX, but I accidentally closed the trade thinking I had made a ~25% gain, but I think I did not choose the right mid-price or the price fluctuated at the time I placed the trade and the order got filled at an unexpected price, it was a scratch though, a tiny $5 loss. I entered a new 7-DTE SPX trade again that is currently active. I will look to close or roll it next Monday or Tuesday.
I have an open trade in TGT (Target Corp) that I am managing and that has yielded me a premium of ~$150 so far. Hoping for one more favorable move before I exit that position.
And the final trade of the week, the most risky, and something I had NEVER traded, and may not trade again anytime soon - it was an earnings play on NOW (ServiceNow). I noticed it because it showed up in list of stocks with upcoming earnings. Now, I have used one of NOW software products (see what I did there!) - and it is clunky and clumsy to say the least.
I thought I will place a bearish trade, but before doing that I just wanted to see if for some reason NOW was trending up. It was not, and it was down ~50% since the last year and ~30% in the last 3 months. The stock price was $95 at the time, I didn't do much analysis after that and sold a 9 DTE $100 Call, betting it would not rise since who would be buying their product right now when most companies are busy spending on AI and laying-off people so they can afford machines.
Well, the day after I sold the Call, the option was already in the money - for some reason NOW had started to move up, and it went above $104 at some point. Right up until the day of earnings, I thought I will roll the trade if it went past $110 and sell a $90 Put to get at least some money out - I had given up on it.
But after earnings, the stock just collapsed from ~$103 to under $90 in after-hours trading - and I was glad my options trade was not a loss. At market open the next day, I bought back the call at $22, making one of the luckiest $273 I ever made. Here is the timeline.
Here is the entire Year to Date P/L list - I added previous week's list here for comparison. I collected an additional $445 in premiums this week, taking my gains from $160 to $605.
Year to Date Realized Gains by Symbols Traded (Last week first, then current week)
Trade Ideas I am Thinking of For Next Week
IWM (iShares Russell 2000 ETF) is an ETF that is not expensive as a SPY or a QQQ. I have been trading it off and on and have made $86 so far. IWM has risen a bit with the broader market and I am speculating it won't accelerate up or down as fast soon. With that, my theory is placing a Strangle on IWM 41 days out.
For a Buying Power of ~4200, this trade offers ~$16 of theta per day, with a probability of profit ~63%, and if the price stays between $265 - $285 at 21-DTE, the trade makes ~$100 or more.
Portfolio Status
Here is the current portfolio status, including unrealized P/L.
I have now made ~$600 in profits for the year. The trick for the remainder of the year would be to keep my losses from here on out to less than that, and I should be good to close the year with some profit in the account. I do have SOFI and HOOD that were assigned earlier in the year that I am selling Covered Calls on as and when possible - and they have not yet been called away. Fingers crossed they don't cost me over $600 bucks!
Thanks for reading. See you next week!
📌 Disclaimer: Nothing on this site is financial advice - I’m just here to entertain! Here’s my introduction, my trading philosophy, and some ground rules.
