June 4 – Back to the computer

Trading has been active but range bound.


I actually have been trading since the last post. I have put a on a number of trades, wrapped up my MAY, and prepare for June. I haven’t posted because last week was SSLLLOOOOWWWW.
With all that said, I am a bit disappointed with my trading.
Last month was adequate. My actual traded model portfolio was up 15.6%. I would like to find more trades like PM. I did a full allocation of a double calendar with KO. Unfortunately, I wasn’t patient enough to put it on over more than two days. When I became fully allocated, the stock moved down. This is consuming much mental capital right now.
IACI – I sort of panicked out of this one last week. It would have more than doubled if I would have held it. Fortunately that was just 1/4 of my position. I have sold another 1/2 @ .25. I hold the last 1/4 for better pricing.
GS – I was stopped on my last 1/4 of 185p calendars for 1.90. I purchased them for 2.05. My mistake was on initiating this trade. I entered this trade while on a down trend, and purchased a spread which was ATM. I could have, and strongly considered entering the 180p calendar.
IWM – I am in the process of rolling my June 71c into July 71c on this down move. It will still keep a bias to the downside in this position, however take more risk off the table. I have also started putting July/Aug 75c calendars to the upside., however I will wait to add more of the upside calendars until we break the trend of lower lows and lower highs. This combination offers breakevens between 69 and 77. I initiated this trade back in April with the IWM around 69. It has been profitable all along the way. I just added 2 units of July/Aug 71c for .71 and .71. with IWM @ 74.68
ACN – I added 1 unit of the July/Aug
Trades which remain in good shape:
UST, CHTT, AEE, MFE
As I open the day on Wednesday, I am sitting on 74% cash. I simply don’t trust this market. The SPY is below the uptrend line since March, and the IWM is approaching it @ 72.80
I see daily resistance on the SPY @ 139.1
Trades on Wednesday:
As thought, the market is bouncing today. I didn’t get enough 75c and 76c IWM calendars on to profit from this up move. However I am looking for a number of potentially good trades.
PBR – I have been looking for a good entry on this, I bought the stock, 1 unit. Purchase price 65.97. I believe I got one at a good level. I was playing it off a bottoming tail hammer. I purchased it above the bottom hammer, and now the stop is set. My plan with this is to either get stopped out, or use a dynamic hedging strategy and ride this for awhile. I entered this near SPY and IWM resistance. Not ideal, but I do have a plan. The market was looking very toppy, and PBR never got to the price in which I was going to put my hedge on. It was then bouncing below short term support @ 66.30. I exited @ 66.32.
DDS – Entered 4 units of July/Aug 15p for .25. 2:1 reward to risk.
IGT – I am nibbling on this entry Jul/Oct 35p calendar for 1.19.
PM – Sold 3 units of 50c calendar for .15-.16. I continue to take some off the table and lock in profits.

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