I closed out more of my weaker positions this morning. ROKU got hit on an AMZN news and I closed that position this morning. I also closed out BABA's Aug 31 $180 calls for a loss and also let go of KSS Sep $80 calls. Took a net loss on all three at -$3300. I'm back to heavy cash at $80k vs. $38k in the market.
Took a loss on NVDA puts and switched sides. Price action shows more strength on the long side so, bought NVDA calls to replace the puts. Observing FB, RUN, JPM. Might close a couple of them. AEO has a lot of time so, I probably, will just stay put on AEO for now despite, the gap down.
I'm jumped into PVH Sep 155 calls. I played this one last quarter and waited a little to see the gains. This time around I will set up a call spread by legging into the short 160 calls later today. I'm hoping that PVH opens sluggishly tomorrow and allows me to close out the short while letting the long side ride for a week or so. I haven't played CRM earnings since it was in the $80s. I'll take a look at it today, but it's last couple of earning trades haven't really been a eye popper. Other than that, it's all about monitoring the rest of the positions. SQ is starting to run fast, and I will have to start looking at an exit. My avg entry on the SQ Sep 75 calls were $3.53 and they are nearly tripled now. The same can be said of NTAP. These two have over $15k in unrealized profits and I do feel the need to lock in some of that soon.
It is good to lock in gains especially, if you have 100's of percent in returns. There is a tendency for other traders to take profits and drive down prices. You can always re-enter if you still like the trade or feel it can continue its current trend.
I've added more LULU positions here using LULU Aug 31 $145 calls. This puts my risk up over $8k now. I feel that the account is high enough where I can weather the entire loss if necessary on LULU. I've also legged into that PVH call spread using Sep 155/165 calls. If PVH's pattern repeat, then I'll look to exit the short over the next few days and allow the long side to ride for another 2 weeks. I'm going to hold off on SQ until it reaches a 300% return before locking in gains. Right now at $11.45 on the calls the gains are at +222%. On NTAP, it hasn't reached my $88-$90 target just yet, so I'll let that target hit before exiting. The gains on NTAP are at +185% but I've got nearly $4700 in initial risk on that one so the actual unrealized are higher. It has also been hard to let go of TJX Sep 100 calls. I played this one on earnings early last week, but that momentum has continued higher pushing TJX up near $109 now. I'm not going to play any CRM earning trades today, but I'll keep an eye on its pattern for next time. And AMZN keeps killing it. That's a lot of missed opportunity on that one. I'm still kicking myself for it only because I took a lot of pain averaging down before it finally turned around.
LULU, NTAP and SQ has very nice uptrends. Hopefully, continues and gives you larger gains. Good insights on these stocks as always.
Thanks, NTAP was practically a pattern I saw played out a couple of times after its earning report. I played it purely on the pattern that should play out during this period. I am still looking for about 10-15% gains from the close before earnings at $82, and that's why my target has been $88-$90 for NTAP. It should reach that target either this week or next week. As for LULU and SQ, they have been my staples for the year. SQ has been an on and off trade for me that has given me gains over $17k so far this year. I only traded LULU around its last report, but I did lock in gains of $9300 during that time. If I take a full loss on LULU this time around, I figure I'm just giving back the house money. PVH in the after hours looks weaker, but it is playing right into the pattern I expect. We'll see if shares tank for the next 2 days before rebounding and pushing back towards its record high around $169 towards September's expiration. Other than that, I was totally wrong about 2900. I thought the SP500 would break 2874 and just stay higher over a longer period, but I didn't expect this jump of +40pts within a week. That's a big move, but I think we might see momentum just carry it this week before volume comes back next week.
I missed that 50pt move on AMZN yesterday, but I'm back in this morning at the open using AMZN Sep 7 $2000 calls playing on the run to its $1T market cap which is estimated to be around $2050. I think we hit that by tomorrow at this rate. We'll see how this plays out. I'm jumping in more heavy here and will add to it if it weakens. Also added CMG Sep 7 $485 puts. CMG has broken below its 20-day ma and should be a nice short term short trade from here to about $470. I only wanted to put about $20k into AMZN, but I ended with $28.6k in AMZN after adding more on that drop in AMZN to $1986. I just felt that was a great chance to grab something here before the run to $2050.
Nice move on AMZN this morning. Love AMZN and buy a lot of small things for the kitchen and bathroom and even small electronics like a mouse.
Thanks, I went in heavy about 14 calls just under $20.50 avg price on those AMZN Sep 7 $2000 calls. I've got tunnel vision on this one. Nothing but $2050 is on my mind. I think we hit $1T soon, but I've given myself some room for error. If I didn't see any errors, I'd have gone with tomorrow's $2000 calls. Also, nice call on NVDA calls jumping back into it even after the dip. My concentration is on AMZN and SQ right now, so I didn't even take a second look at NVDA yesterday. Hope those NVDA calls payoff, because I saw NVDA above $280 this morning. I've started adding AMZN Aug 31 $2020 calls around $11. I'm going to see if AMZN does hit $2050 by end of day or tomorrow morning. If it hits $2050, then I'll get a 3:1 return. If not, I'll take the total loss. I'm in $9300 on these calls. I'll take a total loss on these if $2050 doesn't happen by tomorrow.