Today is a tale of the good, the bad and the downright ugly. Keeping with the “real” aspect of this blog I must admit I completely screwed up. How you ask? You’re probably thinking it’s all the PUTS I bought yesterday, but you’d be wrong. Today’s rally was somewhat expected. I didn’t anticipate my PUTS being profitable immediately, this is not how this works. You must have faith!
My screw up was Disney[stock_quote symbol=dis] – again. Man, I just need to back away slowly from Disney and leave it alone for a while (like several months). It just continues to kick me while I’m down. However, it didn’t really kick me as much as it made me angry. I owned 115 contracts on the MARCH 100 CALL with a trade price of .55 cents. If you recall I purchased this on February 12, 2016, just five (5) days ago and I was in the hole a $1,000.00 at the closing bell that day. I did not buy down or really watch it that close because I knew Disney would recover. I knew it was a matter of time and we would be back in the $95-$98 range so I let it sort itself out.
Here we are a week later and the stock is performing quite nicely. What is so ugly about it?? The mark was .475 cents at close yesterday so this morning before the open I placed an auto-sell order for all 115 contracts at .65 cents per. My thought was: Disney hasn’t been moving that fast and considering it’s a March expiration I was willing to accept a $1,150.00 or 18.8% profit (before commissions) IF the underlying just happen to bounce quickly. Well, hell, it did just that. Within the first 15 minutes of trading all 115 contracts were sold. I wasn’t paying attention and heard the ding. I turned my head and yelled, “what was that” and done. All gone. So you’re wondering why ugly? I made $1,150.00 in five (5) days! It’s the unrealized gain the rest of today’s session that set me on fire. I had to sit back and watch. Helpless and feeling like an idiot. At one point this option was trading at $1.06!!! That’s $5,865.00 or 92.73% profit!! It’s ok, I’m over it…let’s never discuss it again.
So that was the ugly. The bad were the PUTS. Wow, I’m losing money like water going down a drain! By the closing bell my PUTS were down a little over five (5) grand, but this is trading. Must hold strong. Must believe. Whew…knowing my luck (after the Fed meeting today and oil stabilizing) the market will continue up. Thankfully, all PUT options owned are April expirations so I have time. Tick, Tick…
I made the following trades today:
Alcoa [stock_quote symbol=aa] – doubled down on the APRIL $7 PUT at .20 cents per. Total is now 200 contracts for an average of .245 cents per. Currently in the hole $900.00.
Chevron [stock_quote symbol=cvx] – purchased 25 contracts for the APRIL $80 PUT for $1.97 per. This is a HUGE risk in my opinion. If oil continues to stabilize Chevron will continue to go up. However, I’ll continue to buy down until the underlying is around $92. I’ll stop at that point and hope for a dip or lose my ass one or the other!
Disney [stock_quote symbol=DIS] – sold all 115 contracts for .65 cents per as stated above. Damn it. Total profit $1,150.00. Just ugly.
Ford [stock_quote symbol=f] – Wow! Ford bounced hard and moved more than 3% in a single session. Way to go! It hasn’t moved this much in a single session in months. Of course, I bought PUTS so I’m buying down as the underlying goes up. Doubled down with another 100 contracts for the APRIL $11.75 for .45 per. Total is now 200 contracts for an average of .50 cents per. Currently in the hole $2,650.00. OUCH!
Home Depot [stock_quote symbol=hd] – doubled down on the APRIL $110 PUT at $2.20 per. Total is now 40 contracts for an average of $2.34 per. Currently in the hole $1,610.00 with auto-buy limit orders pending for $1.86 and $1.24 for 20 contracts each.
Starbucks [stock_quote symbol=sbux] – Wow! Way to go Starbucks! The APRIL $60 CALL I held performed great today! I am currently up $6,379.00 on 150 contracts. I did not sell today, but have an auto-sell limit order placed at $1.50 per. Currently trading at $1.29. I also purchased 25 contracts of the APRIL $55 PUT for $1.45 per with auto-buy limit orders placed for $1.30 and $1.15 for 25 contracts each. Currently in the hole $100.00.
In the end, with all the gains and losses I remained up $629.00 for the day. I still own GE [stock_quote symbol=ge] as well. The good was definitely Starbucks. I have made more money on Starbucks than anyone could imagine. It is a great stock to trade regularly and I love me some latte’s.