I went all cash when BA hit my stop loss on Friday afternoon. Decided to stay out this morning with wild swings, but as the market is rebounding here from a -500 drop in the DJIA just minutes ago, I decided to add AAPL week 2 162.5 calls to test and see if that was the market low. We were looking at a total of -1100 point drop at the lows this morning. I think we at least get a dead cat bounce this week before we see the next leg lower. There's room to fall, but it just looks like the selling has exhausted in the short term.
I still have the 2 AAPL calls at a loss. I bought 2 more AAPL using the Feb week2 157.5 calls at 3.15. Also added 2 SPY Feb week2 260 calls at the open just above 4.60. Looking for a rebound, but I have stops on these positions. Also limped into a NVDA call spread ahead of earnings on Thursday.
Added AAPL calls using the 160 calls too. Loaded in AAPL at the 157.5, 160, 162.5 calls. Also have that NVDA call spread in play at 2.875 cost on 2 contracts. Just added FB Feb week 2 182.5 calls too. Lots of bullish bounces. I'm not playing long term just yet. Going to test short term this week and wait for that test of the lows say in 1-2 weeks before I get a better idea of the 6 month targets. *This is probably it for the day, but I added 2 JPM weekly 109 calls here too.
I had a little over $3600 in play today (including the AAPL 162.5 calls I bought yesterday). I figured I would just lose the $4000 profit I made on the AMZN call spread last week if things don't pan out. It looked like tech was stronger and I was in AAPL and FB all day. Kept adding small portions into AAPL along with the NVDA call spread position I set up for earnings on Thursday. Then I added JPM around 1PM, and those positions are starting to pay off with the market rising towards the close today. I'll hold all of them through tomorrow and see how things play out, but it's been a wild swing today with the market all over the place. I hope everyone else is playing light or hedging.
Closed out all of AAPL and FB calls...not looking good for the large cap techs, and I had about $1500 unrealized gains that I had to capture. Also have JPM on short leash now and looking to move my NVDA call spread higher. Just closed out JPM calls too. There's profit there that I have to take now and not hold. This market is still too skiddish.
Legged out of NVDA 220/230 call spread, and added the NVDA 235/245 call spread. With the gains on the lower call spread, I'm playing on house money only. So I'll take a full loss if NVDA drops. Again, everything is short term, and at times just a 2 day hold at best. The market's vol is still around.
It looks like today's rally comes from the industrials like BA, CAT, and MMM. Large techs are barely holding on with AMZN in the green, but AAPL, FB, GOOG, and MSFT are all red. I have readjusted back to mostly cash today locking in about +1600 in profits from the 3 AAPL calls, FB and JPM calls, and closing that NVDA 220/230 call spread. I do like NVDA and that's why I've opened the 235/245 call spread at 3.50 avg. with earnings due out tomorrow AH.
I started hedging against my NVDA call spread. I ended up using a BA Feb wk2 347.5 put as the hedge. Then I bought TWTR 26/30 call spread ahead of earnings tomorrow. The social media stocks have had this momentum that I expect it to carry over to TWTR tomorrow. Which means TWTR doesn't need a superb earning report, just good enough. But then I decided to use 1 FB 182.5 put as a hedge against that TWTR position too. Just in case in this market. Playing it safe.
Adding a position in SNAP Feb 19 calls today too. I like playing the overshoot on momentum and I think we should get one here.