The best way to describe today – busy. My head is pounding after all the calculations and trading! What a great day! I was a buying machine and made many trades all while holding down my real job. I will be brief today and simply list my trading portfolio trades and positions. I did not purchase any additional Wal-Mart [stock_quote symbol=wmt] stock with my primary portfolio because it just didn’t dip as much as I wanted it to. I’m keeping an eye on it.
Ok now for the good stuff! Below I have listed all trades for today:
Ford [stock_quote symbol=f] – upon market open I added 200 contracts of the APRIL $11.75 PUT @ .35 cents per bringing my total to 400 contracts. Why you ask? Ford hit $12.44 very early and I knew that would be short lived. I used the high underlying price to drive the PUT premium down a little and doubled-down. Later in the session I sold 300 contracts (covered call) of the APRIL 16 2016 $12.75 CALL option @ .36 cents per collecting $10,800.00 in premium. If you have not read my selling covered calls article please do so now. Currently, as of the closing bell, I came up slightly on the PUT, but I’m still in the hole $2,300.00. I am up $750.00 on my covered call bringing my current loss to a total of $1,550.00. Remember, the covered call is increasing in value each day as time decay lessens the value of the option. It is also offsetting my PUT option loss which helps.
Chevron [stock_quote symbol=cvx] – GO CHEVRON!! Make me some money! Whoo Hoo! Luckily, upon market open I added 25 contracts of the APRIL $80.00 PUT option @ $1.80 and then 10 minutes later I added 50 more contracts @ $1.75 as Chevron caught a bounce up briefly dropping the PUT premium. I was nervous about this trade yesterday, but that nervousness soon dissipated when I became profitable! This brought my total to 100 contracts of the APRIL 16 2016 $80.00 PUT option with an average trade price of $1.8025 per. Currently I am up $3,325.00 with the mark hovering at $2.135. Honestly, I did think about selling this and taking a profit in 24 hours, but I decided to hold. No reward without risk! Given how oil was acting today and Chevron stock too, I decided to wait until tomorrow to make a decision. Regardless, profitable for now – unrealized of course.
Starbucks [stock_quote symbol=sbux] – Starbucks was weird today. It didn’t do much of anything and just hung out and moved with the indexes. I purchased 25 contracts for the APRIL 16 2016 $55.00 PUT option upon market open for $1.35 per. I wasn’t totally confident it would go down so I didn’t buy many. I figured if the underlying went up I would just double down on this PUT. Currently the PUT is up $350.00 and trading at $1.59. I must admit I should have sold the APRIL 16 2016 $60.00 CALL yesterday when I was up a good bit. I lost $3,750.00 in value today, but I’m still up $2,629.00 with that option. Goes to show you how far up I was yesterday! So I’m not losing money, but I could have made more as of now. Maybe it will go back up. I’m holding for now. Total gain for both the PUT and CALL currently is $2,979.00. I still think Starbucks is going up. It’s just a matter of time, but I’m riding the PUT right now to make a little extra on the side.
McDonald’s [stock_quote symbol=mcd] – later in the afternoon I noticed McDonald’s was down more than 2% and getting close to $117 again. I couldn’t resist and started buying the APRIL 16 2016 $120 CALL option. Initial order was 25 contracts at $2.08 per. Next order was for 25 additional contracts at $2.00 per and then yet another order for 25 more contracts at $1.90. I have another auto-buy order pending for 25 more contracts at $1.75 per. Currently I own 75 contracts with an average trade price of $1.99 per and it is currently trading at $1.94. I am down $375.00 or 2.51% roughly. Patience…
Volatility Index [stock_quote symbol=vix] – Also while researching deals later in the day I noticed the VIX was trading around $21.50. I purchased 10 contracts of the APRIL(4) 16 2016 $25.00 CALL option at $2.45 per. Currently I am up $125.00 or 5.10%. If the VIX continues down, especially if it gets back in the 16 range, I’m buying all the way down.
I still own the following in my trading portfolio:
Alcoa [stock_quote symbol=aa] Options
General Electric [stock_quote symbol=ge] Stock
Total gain for the day: $2,919.50 (even after losing more than 3k in value on SBUX call option). Total gain since opening current positions: $4,081.00