DECEMBER 12, 2018-FRIDAY
It’s Friday again! So sad…I always hate to see another trading week come to an end. This one has been good, and maybe next week will be the same! Please remember we have a short trading week next week due to the MLK Monday holiday…
TODAY’S TOP PERFORMERS
Activision-Blizzard (ATVI): I purchased the ATVI May 60 Calls and I’m profitable $1,150.00. I beleive ATVI is definitely going higher! It has formed a good base over the past few months and is in the process of a breakout.
Disney (DIS): I purchased the DIS April 100 Calls and I’m profitable $1,850.00. In my opinion, DIS is now back to the $112.00 resistance area and could go either way. It looked really good this afternoon with a nice jump to $112.72 after lunch and looks like it is trying hard to go higher!
Home Depot (HD): I closed my Jan 180/192.5 Put Spread this morning. I’m a week away from expiration and HD was on a run so I took 85% of my premium (profit) and cashed out.
It’s not like I’m going to be put the shares next week unless something terrible happens to the market (possible, but not probable) so I figured it was time to get out. I did, foolishly, notice a heavy spike in volume and price after lunch and jumped back in with 250 shares to try and make the remaining spread premium real fast, but it turned against me fast and cost me $600.00 of today’s profits. Stupid! That pissed me off briefly, but then I just laughed and thought: this is why you don’t chase or do anything on a Friday afternoon! I will make it back soon enough…love Home Depot!
Intel (INTC): I continue to hold a Jan 40/45 Put Spread (expires next Friday) with a break even of $43.74 and a March 38/48 Put Spread with a break even of $45.02.
Intel has been tricky this week with the whole security debacle of 2018, but I believe it will come back with a vengeance so I added 1000 shares @ $43.15 before lunch with a target sell price of $44.95. Why did I add the shares? Because I’m down $1789.00 on my spreads and if I can catch a bounce back to $45.00 per share the stock alone with make up the deficit making my spreads easier to hold and more profitable overall (not the spreads, but my Intel trades YTD period)!
Cool Intel Event: If you have not seen the synchronized drone light show Intel pulled off at CES this week I have included the video below. I was impressed to say the least. Most don’t realize what it takes to do such. Enjoy!
General Electric (GE)
As GE approached $19.00 per share I added March 19 puts to cover my existing 1000 shares. Max loss is $500 so I was cool with that for nearly a fiscal quarter of protection. My goal is to make sure GE is not about to dump to $17.00 and if it does I intend on selling the puts profitable and adding to my stock position. I do not intend on selling any shares. I have a $24.00 per share price target on GE by summer.