Risk management, decision time

2017年4月14日

I am long 200 shares < 5% per rules and added this higher beta name to compensates for my lack of delta. It quickly turned south and I was left holding the bag (a fool and his $$$ were lucky enough to get together in the 1st place---BH) I did reduce basis by immediately selling calls and have reduced basis by 6.30. With earnings approaching 5/2 I need some upside momentum but is still pretty far off. I am considering a 1 by 2 call ratio spread for a .14 credit if set @ 33/35 (if placed today) This would give me the most options of rolling out short strikes and is fairly neutral....letting the risk ride with a "stock repair" options strategy to help me break even or little better. My other consideration is to sell the ATM straddle, which adds risk and if placed today @ 31 for a 4.28 credit is much more aggressive. With by break even price now @ 32. Publishing this post to try to get in the habit of posting ideas and learning to use functions on charts.

2017年4月21日

註釋

So today was a good strong up day for the market overall and a good day to sell calls in TWLO. I sold the 35 call for May 19 expiry for $0.95 each. Surprisingly TWLO ended negative on the day with 174 point up move for the DJIA....very bad sign. At this point I am hoping it can get called away or close enough to sell at my breakeven. I am wishing I had collared TWLO and bought SHOP instead, but that's the way it goes sometimes and I will defend as best as I can. Earnings are on May 2 so I am hoping I will make it......although Frexit is this Sunday so we'll see.

2017年4月25日

註釋

So the last couple days since I sold these last set of calls have been 200+ point up days for the index and TWLO has struggled early in the mornings when I watch the markets and had small gains by the EOD, but still behaving really badly. The calls I sold to open have come down but not by 50% (my normal target) Closed them today for .50 and actually BOUGHT puts @ 31 out til the end of May as a small insurance to hold the shares through earnings by giving up some of the premium I've collected to reduce basis. I am hoping for a pop but hope is not very useful. If TWLO runs up into earnings.....I will sell calls again. If it drops I will probably just close the position. Will have to wait and see what the market gives me?

2017年4月28日

註釋

Sold the 35 calls again today out til June monthlys for 1.25 with a little run up....now fully hedged. Previous post shows I am long the 31 puts but actually went with the 30. We will see what earnings does....either way I'm good with it.

2017年5月2日

註釋

Looks like they decided to finally sell after the lock-up expiration.....really glad I decided to hedge this trade! I have reduced basis by 7 dollars so far. If I sell the calls and puts my new basis would be ~ $25 with the stock at 23 and change not all that great. If I sell the call and EXERCISE the 30 put I will lose $140 total so I will have to decide what I want to do. The stock will most likely trend down over the next 5-7 days after a 2+ expected move so I have time to think about it.

2017年5月3日

註釋

Well a bit of a miscalculation on my part. Closed the short calls for .15 and long puts for 5.40 which brings my cost basis to 26.75. Pretty big mistake on my part not accounting for what I initially paid for the puts and trade costs. Decided to keep this trade on with the hope of eventually making some money. Sold a call ratio in June to try to help with that +1 @ 25 / -2 @ 27 for nothing (.05) Will let it get called away at 27 and cash in 25 call for profit. Lot of work for not much squeeze but good practice to work out of a losing position and also don't have much delta.....still mostly in cash.

2017年6月10日

註釋

Closed the long call of the put call ratio (stock repair trade) on 6/7. Also lucky timing. Still have the short 27s (2) and will hope this stock gets called away....NOT LIKELY! Wish I had bailed on this POS trade when I had a chance. Calls expire next Fri. so will look at making a wiser decision this time (we hope) Last 3 sell offs have had V bottom recoveries so lets hope I can get out of this trade with a little cash.

2017年6月19日

註釋

So the calls from the ratio spread @ 27 went out worthless on Friday.....and by some gift from God TWLO was up a buck and change this morning. I sold everything for $28.11. I had nine commissions for $4.95 + .75 (each additional options contract) leaving me with a total profit of roughly $175. What a BEATDOWN! This position is now officially CLOSED.

2017年6月19日

註釋

Just to be clear, if I were able to use Tasty Works as the brokerage for this account and the amazing fees of .65 per options leg I would have made $30 more.............Thanks for nothing Fidelity!