Oil is still red hot after yesterday's news. Only thing is I took a lot of oil profits already, probably too early. Only thing left is HES. I doubled back on PSX and COP and both have continued to record highs. That's my mistake of the month in April.
Just noticed that NVDA is reporting tonight. I had loaded into the May 255 calls. I'm going to add to the 255 calls and then set up a call spread selling the 265 calls. All set with 20 of the NVDA May 255/265 call spread at initial risk -6510. I didn't grab the weeklies on this one because I wasn't aware of the earnings report tonight. But I have adjusted and will play it as a spread.
NVDA made a beautiful move this morning. It worked right into my call spread theory. People say that history repeats itself, and I saw this move before (not exactly, but similar). Back in August 2017, leading into NVDA's earning report I had a weekly call spread and when NVDA took a dive the day after earnings, I had to close out because my call spread expired that day. I watched NVDA bounce back hard the next week and recovered everything. This time around, I have next week's expiration, and when NVDA opened at 253-255 range, I closed out all of my short 265 calls for under $2 (avg buy was $7.32). I don't expect the long 255s to reach my cost, but I'm now looking at a nice +5K profit total (closed out 10 of the 255 calls already just under $8 avg). I'm going to leave the other 10 calls into Monday and see if that reversal momentum from this morning can continue. I must also say that NVDA's earning report had to be stellar for this move to occur, and that report was solid.
Also added SQ Jun 55 calls yesterday, and into today at lower prices. I'll try to avg in about 10-15 calls.
OI, its often been said that the small cap (RUT) and transportation (IYT) indexes are leading indicators in the markets. That being said, the charts below indicate they are at or near the tops of their respective sideways trade ranges for both indexes. Also on the SPX chart at the bottom of page, the candle pattern is beginning to look similar to the mid-April pattern. Any thoughts?
And I would say that to start with the big capital, especially with Suisse banksters as your broker, without knowledge and experience, is the true way to lose most of that. I am trying to restart with so little that shame to say, still I believe we can, just need to overcome the stress of the situation we are living in, which create a lot of emotional waves and obscure our trading steadiness.
For the IWM, I'd say watch how it reacts at the top. We could see a breakout that leads the market higher for another 2 weeks. The Nasdaq is also leading us higher and is near its top too. As for the SPX, I remember the chart you pulled up about 2-3 weeks ago on it, and I thought we would either drop below the bottom trend line or break out above that descending trend line. As of right now, it has clearly jumped past that upper trend line. This could still be a fake out, but the rally looks good right now. I'm not saying it's a rally that could go on for the next 6 months, but we could get a good 8-10 weeks on it.
For the week, I closed out my HES position, had the earlier exit from NFLX and took a loss on UNH calls. It came to about +6600. As for the NVDA play, I bought back the 265 calls yesterday morning and sold 1/2 the 255 calls at avg 7.85. Still holding the other 1/2, but the position together is showing +4041. We'll see if that holds. Right now that has pushed my account up to just under 77K. I do feel like my position size are getting bigger as the account is getting bigger. I'll have to adjust risk accordingly.
Not much this week. I've closed out the remaining NVDA calls this morning and I am adding SQ Jun 50 calls to my 55 calls to create a position with about 4-5K in size. Still less than 10% of the account, but I noticed that my position size has been very small compared to my account size lately. The net gain on the NVDA call spread came to +2568.
Took the last 3 days adding into SQ June 50 and 55 calls. I have about $20k in SQ now (closer to $18k). I just feel like SQ is on a move to break the recent highs and set up a new leg higher. Other than that, I've started adding AAPL today using the Jun 185 calls around $6. I'm looking to get between 10-20 contracts with about $6-$12K in size. SQ is running higher today, so the big position size has helped. I'll try to hit the $100K market with these two positions. Right now with Summer in play, it's always much harder to hold multiple positions through to September, so I prefer to play it heavy on a few positions with tight stops. My avg. entry for the SQ 55 calls were 2.45 while the avg for the 50 calls were $5.28. As for AAPL, I'm avg about $6.00 on the calls I have right now.