May 28th 2018

I cut my losses on previous AAPL options positions. The Bull Put on AAPL 185/175.5 PUT Option expires June 8th, it still may be profitable, the break-even was AAPL @ 183 by Jun 8th expiration.
I'd rather close my long position and prepare my portfolio for a potential negative downturn. I've been bearish for damn near two years, looking at the Geopolitical landmines coming up with the Russian investigation along with Euro stress from Italian political turmoil has me cautious to the upside. We have three choices as traders, go long, go short, or do nothing and sit on the sidelines.
For the knowledgeable options traders out there, yes there are strategies that can make money options trading in a low volatility market. I believe betting against high volatility is a recipe for disaster in the long term.

Portfolio
YM September PUT 24600 Strike
FXE September PUT 110 Strike

Comments

  1. YM market down over 400 points, 24,500 support broken, 24,300 broken, 24k is the next area of real support. My options are working so well I cant help but be a little giddy. Anything can happen. This week market can decide the market sell off was over done and and change direction to the upside.

    I have my bear suit on now, so I am super biased! I need to be ready to hold on to my profit if it changes direction this week.

    ReplyDelete
    Replies
    1. Not surprised the market rebounded today, up 300 points. I had to close out my option position to take the profit that was left to take before the position went into the red. No easy meals in this market. In other words... “There is only one side of the market and it is not the bull side or the bear side, but the right side.” - Jesse Livermore

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    2. hey man, a profit is cause for a meaningful celebration - big party, small group dinner you name it. once again, you've thought outside of the noise that "trading consultants" put out and made a decision all on yourself. the reward is a green pnl number.

      so cool you watch the nba. I don't have a dog in this particular fight but given that LeBron is on the tail end of his career, i'm inclined to root for him out of nostalgia of years gone by. it's been a loooooong time since his first NBA game.

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    3. Thanks Rhiese. this market is making me work hard, feels like we are exploring a choppy price range that makes holding any position long or short a challenge.

      I am a big NBA fan, watching Lebron James play at such a high level for so many years will be remembered as one of the greatest historic performances.

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