Today I made one more tiny step towards my financial education. Over the past year, I have had some pretty interesting shift of some long held beliefs. I have shifted away from the idea of value and now increasingly believe in the short term, momentum and sentiment matter a lot. I made an initial foray into options trading in which I had mixed results. I entered a market that was turning around from a very robust bull run. All my bets were bullish, and I ended up being net negative on my trades.
PETM put sold 30 days out.
After taking a small break, I entered my first volatility trade. PETM had gap'd this morning and had a high IV percentile. I sold a 65 put a month out. Now the stock has been in a uptrend for a month. The hope is that the stock holds its value for a couple of weeks and the decaying IV gives me some credit.
The bad situation would be that the stock fills the gap and corrects after gap'ing.
TSLA 240 Sep call bought.
TSLA is volatile and has been on a pullback over the last week. The hope is it climbs up to 240 in the next two months. I want to hold it for a few weeks, with a max loss of 200 dollars.
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+ 2 day update.
The TSLA trade has gone pretty wrong. And is down 20% as $TSLA continues to slide.
PETM trade still holds.
NASDAQ and SPY are in slide, so the rest of my portfolio is not doing so well.
I want to wait it out and not pull the trigger.
+4 day update
I added a CAVM call on a sliding underlying. The next day, I was up 50% so sold that.
TSLA went from -300 dollars to +150. So sold that
PETM was closed at 60 USD gain. So the first volatility play was a success.
PETM put sold 30 days out.
After taking a small break, I entered my first volatility trade. PETM had gap'd this morning and had a high IV percentile. I sold a 65 put a month out. Now the stock has been in a uptrend for a month. The hope is that the stock holds its value for a couple of weeks and the decaying IV gives me some credit.
The bad situation would be that the stock fills the gap and corrects after gap'ing.
TSLA 240 Sep call bought.
TSLA is volatile and has been on a pullback over the last week. The hope is it climbs up to 240 in the next two months. I want to hold it for a few weeks, with a max loss of 200 dollars.
--
+ 2 day update.
The TSLA trade has gone pretty wrong. And is down 20% as $TSLA continues to slide.
PETM trade still holds.
NASDAQ and SPY are in slide, so the rest of my portfolio is not doing so well.
I want to wait it out and not pull the trigger.
+4 day update
I added a CAVM call on a sliding underlying. The next day, I was up 50% so sold that.
TSLA went from -300 dollars to +150. So sold that
PETM was closed at 60 USD gain. So the first volatility play was a success.
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