Bull or Bust

a bull's view

NOVEMBER 20, 2017

thanksgivingHappy Thanksgiving!

As you will notice I have not been posting much this month. Briefly, I have been extraordinarily busy with work during the month of November. I had a client’s office flood and I’ve been working on a huge new construction project in Alabama so a lot of my time has been with my “day job” and not with this blog.

I still find time to trade and really screwed up with Dominos a couple of weeks ago. I just happen to execute a lovely 170/180 bull put spread the day before the Papa John’s NFL and earnings debacle. Terrible timing and it cost me $14,000.00 at one point. Luckily, due to experience, I did not panic. I actually closed the bull put spread and waited patiently for DPZ to bottom. When it went below $170 per share I began buying the Jan 170 call pretty aggressively. Within a few days I pulled out of my loss and recovered completely. Whew!!

Home Depot

Then came Home Depot (HD). Wow! Love me some HD and I have literally kicked myself for two years for not buying it and just holding. I cannot remember if it was before or after earnings, but I bought 10 Jan 150 calls and I’ve made great money so far. I intend on holding this time.

November Winners

I’ve also done well this month with Square Inc (SQ), Verizon (VZ) and my favorite stock of the year XPO Logistics (XPO). All of this combined has not only recovered my initial loss with DPZ, but brought me higher than I started. If you have been following along you might wonder why my balance is only $70,800 and some change if I’ve done so well this month and that’s simple: commissions. I closed two huge and highly unprofitable positions in Pandora (P) and Rite Aid (RAD) within the past week. The commissions alone for closing both were above $2,500.00. Ouch!! But hey, at least my balance is higher for the month so far…even with the commissions!

Pandora and Rite Aid (Ouch!)

Pandora kicked me pretty hard, and I’m sorry I’m out, but I don’t see anything good for the short-term. I’m still watching it close. Rite Aid I will execute a covered stock purchase in January. I was going to do it this week, but I am waiting to see what happens the first week of January. I have a feeling the market will sell off as those that are waiting to take profits finally get their chance (to save taxes). I plan on buying 10,000 shares of Rite Aid and covering with the 2019 1.5 put. I have a feeling it will be above $2.5 before the end of 2018 and I want my money (and commissions) back!

Current Holdings

Home Depot – holding Jan 150 calls – 1000 shares worth

Verizon – holding Jan 40 calls – 1000 shares worth

XPO Logistics – opened new position in 60 / 80 call spread – 1000 shares worth. Hoping for a pullback before Christmas so I can buy back the 80’s profitable (collecting most of the premium) and double down on the 60’s which is what I really want to call…

I hope everyone has a Happy Thanksgiving…I will be working the entire week even on Thanksgiving day! There is no reward without risk…and hard work! Enjoy!

Stock and Option Trading