I woke up today, ready to take off a “successful” MRVL trade. Fortunately the underlying went my way, unfortunately the calendar spread hasn’t yet opened.
When I my son woke up sick, I wasn’t able to head to work and teach my “Babes” group, I decided to look for a few trades… Good News… I found a few.
The Employment report was bad news (69,000 job loss, which included 35,000 new govt jobs).
The stock moved swiftly off it’s lows, I managed to put on a trade to take care of the retracement from it’s daily highs.
SDS (SP Ultrashort) – I bought 1 unit of the SDS @ 65.55, It made a low of 65.25, and since then has rallied. it would momentarily advance from 1 fibonacci number to another. I have put a trailing stop which has now guaranteed that I earn what I would have earned by going to Ski School today. At 1:30 EST, the market propelled to knew lows. This is a good thing for my portfolio. The market bottomed @ 2:40pm @ 1286. I expected it to fall another 5 points. I exited my SDS for 68.11. It wasn’t as good as it could have been, but it did work well. Went long GS within pennies of the bottom.
GS – 2 units of Apr/July 170c calendar for 6.05 and 5.90 at 158.14 and 157.35. As SPY retested it’s low, and I have set the appropriate stops on the SDS to lock in a profit. I have now started entering GS to hedge to the upside. The Breakevens are 148 and 202. This is also a 3 month calendar capable of a 1.5 to 1 reward to risk in just the first month.
MSFT – I sold my final unit of stock @ 27.79, it’s eventual high was 27.98. I also covered my hedge for .05. In other accts I covered 2 units of the July/Apr 20/27/5c for 6.76 @ 27.94. I will take the modest profits and not go into the weekend with too much bullish exposure.
T – Covered 1 unit of Apr 32.5/35p for .87 @ 35.41. Again making a modest profit, and taking some long exposure over the weekend. But don’t get me wrong. I am NOT bullish.
WSM – Bought 1 unit of Apr/May 22.5c calendar for .30 @ 22.24. This gives me some long exposure with a Theta decay benefit. Breakevens 19.25 and 26.75. And offering a 3:1 reward to risk.
I am now looking at a few stocks that lean to the long side.
I have taken much of my directional risk off the table, and sit on 400 positive deltas. All of which are Theta positive type plays (I.e. covered options, credit spreads, calendar spreads, Iron Condors and Butterflies).
After being down a full 1 percent yesterday, I am now up 1.5% today. It is a beautiful thing.
Being dad, and still attempting to make a living.