I hope everyone is having an awesome weekend! I love the long weekends and it finally warmed up a bit in the Northeast so we can go outside and enjoy all the new snow. I am getting back to work now and updating all my open positions within this post. Please send me feedback or questions. I would love to hear from all of you.
The website and services are coming along nicely and I should be able to meet all my goals for roll out of the new services that I have embarked upon. I am really excited about the chance to share this with everyone and build some awesome relationships along the way. Over the next week I will have a lot of things complete and several of the changes will be implemented. I am going to continue to post a lot of information in the general blog area until I get the services completed. This will be free for now and will at least allow for everyone to see some of what I am planning on doing and how my trading is progressing.
Below are all my open positions and a brief summary and notes about the positions. I will continue to post during the week and if there are any new positions or actions taken Twitter will be posted to as well.
Index Options Strategy:
UNG, NUGT, OIH, TBT
I continue to hold the long 100 shares of UNG and I have been aggressively selling a call against the position to lower basis. I am looking at selling puts against the $6.80 support level. If we get closer to that level next week I will be pricing some puts to sell.
The NUGT Position has done well, but has stalled a bit. It is approaching the 21DMA and any close below that will be cause to cover the position. If we continue to trend sideways I may sell some calls against it to lower theta decay of the position. Another option is to cover half the position for a profit and then sell some calls to lower basis and to lower loss due to theta decay. This will lower the potential upside, but will protect gains on this position.
The OIH Position has 200 shares long and I have sold calls against it and lowered basis multiple times. Oil continues to trade sideways between 50 and 55 causing continued trending action in OIH. Support will be tested just below 32 and we will have to see If we go as far as the 200 DMA and the long-term up trend line. I would look to sell some puts or put spreads to get a bit longer at that spot if the overall markets are remaining in tact. I let the 33.5 FEB17 calls expire and sold next weeks 32.5 calls for $0.28. Every little bit counts and I will look to put on the 2nd short contract next week.
Shorting bonds still looks very attractive. I have continued to roll the covered position and have taken heat several times on the calls, but have rolled them out and continue to lower basis as TBT trends between 39 and 43. The covered call strategy will continue until 43 is broke to the upside. If this occurs I will look to enjoy the ride higher and look at ways at adding risk to take advantage of the breakout of TBT and bonds moving down.
Stock Options Strategy:
The position in TWTR has become very far OTM for the long calls, but I continue to sell 1/3 to 2/3 of the of the position in calendar spreads to lower the cost basis. I don’t sell the full position due to the buy chance. This thought probably will change this week for me because if the CEO just bought a huge position there obviously is no buyers he is talking to now creating a front running issue. So, I will be more aggressive selling calendars to try to bring back some capital from the trade, or just close the trade if I can’t get enough premium.
UAA looks to have found support near the 20 dollar level. I have 1 short MAR10 21 put open at this point and any pullback below 21 will get me into selling another short put around the 20 level. I like any breakeven at this point in the 19s if I can get it because I think owning UAA at that level is a good price at this point. Until next earnings as well I think that there is little news that could be negative on this company. So, I think most of the headline risk is out of this one, and we can at least until next earnings sell puts against the 20ish level. I expect to roll the current short put out later in the week if the stock continues to hold at this level.
The Bottom Line:
It has been a great long weekend and I hope everyone has enjoyed it. I took a lot of risk out of the portfolio this last week and did not enter a lot of new positions. I will be looking as always to get back in as I find good catalysts or opportunities. This week will be a large watchlist and market direction evaluation period for me. I think it is prudent that I go out and revisit my catalysts, my general market thesis, and look to the charts for any major trend moves/changes. The rest of the week and going into the weekend will have a lot of work on the websites and getting organized as I roll out the new services. I am really looking forward to sharing these with you and giving the opportunity to join my Team in the trading world. I hope everyone completes the long weekend with a smile, and we get back to work on Tuesday ready to take on the opportunity that lies ahead.