Week 11: Yay a Pullback.
Ouch, a pullback!
I know that I’ve been trading well when the market pulls back nearly 5% like it did at the end of last week and I don’t feel stress, but instead I feel relief.
That parabolic market was scaring me, and now the QQQ 0.00%↑ index has fallen back into the safety of the channel.
It’s still a time to be patient though, I want the QQQ to be somewhere around the middle of the channel before I start investing a bit heavier. I would love it if the market would chop flat or slightly down for the next week or so to get us there.
Anyways, let’s get into the week.
Profit / Loss
I want to start with the profit/loss situation because I think it tells a bit more of the story.
The week was rough. I ended up down 7% which is the wrong way to beat the QQQ which was only down 5%. But, I had 11% gains the week before, so I’m not mad about it.
What’s great about trickling in money into the investment is even on down weeks it doesn’t seem so bad, because with the $400 I put into the account this week ($200 from last week that I forgot to put in), we’re actually up 0.62%
Trades
I mentioned a while ago that I only want to trade on this account 2 days a week: Mondays and Fridays. However, I have been waiting so patiently for volatile that I did trade this week as the vol increased.
Closed / Trimmed Positions
I’m doing something different with my put sales in the wheel strategy lately. Essentially, I’m not waiting for them to expire worthless, I’m buying them back after they’ve lost 60% of their value. In fact, as soon as I sell the put, I put in the limit buy order.
I’m doing this because there were so many times that I was sitting on lost buying power held in an option that was worthless. I realized that by closing it early, I can use that buying power for better gains. It also reduces the risk of a random crash happening.
This week I closed the following positions:
QBTS 0.00%↑ I bought back my put for $0.25
TE 0.00%↑ I bought back my $0.10
I had puts on TE 0.00%↑ and a covered call on RR 0.00%↑ both expire worthless.
So I spent $35 buying back options.
I also trimmed down 3 shares of GRRR 0.00%↑ at $21 which was great timing because it pulled back $17.50. It was a good trade, and I still have 7 shares left.
Sold Options
I did sell a bunch of puts this week. Like, probably more than I should have.
I sold:
OPEN 0.00%↑ - Tuesday I sold an OPEN $4-strike (July02) for 0.13
I also sold a NNE 0.00%↑ $22-strike (July02) for $1.28
and an EOSE 0.00%↑ $7-strike (July02) for $0.47
On Friday with EOSE 0.00%↑ and the rest of the market dropping, I sold a $5.5-strike (July10) for $0.24
I also sold a PATH 0.00%↑ $10-strike (July02) for $0.26
A SOFI 0.00%↑ $14.5-strike (July02) for $0.37
And a DGXX 0.00%↑ $5-strike (July02) for $0.51
Monday with the market bouncing I sold a SATL 0.00%↑ $5-strike (July17) for $0.27
And a USAR 0.00%↑ $18-strike (July10) for $0.76
I also sold an RR 0.00%↑ covered call (June18) for $0.08
That burned up a lot of my buying power. But it led to $437 in cash in the account. Right now, the EOSE 0.00%↑ $7-strike looks like it might get assigned, but I’m actually ok with that.
Equity + Cash Position
I’m in the process of building a position in CELH 0.00%↑ which I would consider taking all the way to 100 shares eventually. This week I bought 5 more shares for $28.04/share and now have 13 shares at $30.24.
We still have over $2,000 in cash (about 33% of the portfolio) and $7,800 in buying power.
Plan for Next Week?
To be honest, it will all depend on if some of these put options get bought back. I like having some extra buying power in case the market pulls back again. If some things get bought back, I’ll likely be active. If not, I’ll take the week and analyse things.
If the market goes up, I’ll chill.
If there’s volatility and it drops, I’ll be active.
Simple right?
Not Financial Advice, just my trading log
See you next week!