The market continues to move around like crazy! The fears of the Coronavirus wiped out all of the January gains on Friday which was not horribly unexpected. Personally, I think we are still pretty over extended in the near term and will see a correction sooner rather than later.
I got my faced ripped off in TSLA this week after they simply blew out earnings and the stock shot up like a parabolic rocketship. I was short call spreads from 560 – 640 and they basically all went ITM almost over night. Rather than try to manage my way around it and sell puts and work it all, I decided to simply close out and take some losses. I’ve found that for me, I tend to want to revenge trade things like that I it ends up turning out very poorly. I’ll come back and check on TSLA in a while, for now I have no idea where it’s going to go as $650 seems totally unreasonable and simply based on castles in the air.
My little SPX selling test was fully profitable this week. I’ve doubled the size of it and will continue to test it in the markets throughout the year. So far, it’s working nicely. Even with the major sell off on Friday, I had no problem finding enough premium to safely be outside of the range for the day.
My portfolio is currently much longer in delta that my market posture. I’ve got long delta positions basically across the board on BA, BKNG, CRWD, DIS, EEM, FXI, GLD, GM, SMH, UNG, WYNN, XBI and XLV. My only short delta positions are on AAPL and INTC. Given that I expect a correction soonish, I’ll be looking to take quick profits on any of these positions that I can to basically “get flat” and then reposition accordingly.
I closed out a bunch of ITM TLT calls due to assignment risk with the ex-dividend date being Monday. I don’t have any desire to be short bonds right now, the market seems ready to go down and I’d rather be short for the near term.