Options Portfolio Update – 2021-01-06
Current Long Options Swing Portfolio: $DBX, $FISV (re-entry), $FUV, $ON, $PINS, $SNAP, $SRNE, $SURF, $SESN (stock play)
Newly Added: $NIO
Profits Taken: $ACB, $ON (short-term position)
Limited Loss: $DGLY, $FISV
Today was an interesting ride. I loved how the day started and found some value along the way. I was also able to limit some of my losses I carried over from 2020 and get out of those positions.
Then, protests and mobs after yet another election, but in this case, government facilities were the focus of those events, rather than civilian areas in cities. But, that disruption caused the markets to take a late day hit that dealt a bit of a blow to some tickers for the day.
With that said, including the stock holdings that I have, my portfolio was up about 5.6% on the day, with the options side of things leading the way, as it should.
Taking Profits:
I had another two holdings that hit their targets today. As I’ve previously mentioned, as this is a small account and my ‘full size’ holding is about $400, it is difficult to phase out of many holdings.
ON
I’ve had one set of $ON holdings that expire next week, so I was looking for a good exit point to take profits on this. And, I like this so much for the longer term that I picked up another position further out with its dip this past Monday.
With that said, $ON gapped up early and I was able to take more than a 300% profit on my remaining ‘short-term’ holdings as it passed through the $34 barrier, which coincided with the 161.8% extension.
ACB
With the new Congress being sworn in, etc., pot stocks, like $ACB were going to get a boost. So, on Christmas eve during a dig, I bought a position.
In pre-market this morning, it gapped up not just one, but two sets of fibs. In these cases, as they usually then pull back and play in the new, higher channel, I set my target for market open right at the upper fib lines and was rewarded with the order being filled in the first 5 minutes at more than 100% profit.
I will be looking for a re-entry, so back on the watchlist.
Limiting Losses:
I had a couple positions that I got into last year that were guaranteed losses, as the options were set to expire in the January monthly cycle, and the stocks were doing little. But, a chunk of 2020 was spent learning to trade, so, I had plenty of losses last year. And, as I expect my learnings to result in better trading in 2021, from a tax perspective, I felt it was better to extend those losses into this year.
As we crossed into 2021, both showed some life, and I was looking to limit my losses as best I could.
DGLY
$DGLY is one I have been expecting to fire for a while, but it was too stubborn and squeezed entire orchards for a long time. However, in looking at the charts and actions, I determined that it was possible I could still limit my loss to about 20%, so I set my target accordingly, and today, with the events in DC, it took a quick step up, hit the target, and limited that loss.
However, with that said, I couldn’t foresee that the option prices would spike as high as they did, which could have resulted in more than a 100% profit instead if I held on another 15 minutes. But then, I traded my plan, it executed, so I cannot let FOMO drive other decisions.
FISV
$FISV is expected to be a 2021 darling, however, it really didn’t want to start firing, and in fact, went down, during the last month. But, since coming into 2021, it is finally showing some life, though too late for my Jan 15thoptions. So, when looking at time decay, likelihood of reaching various levels as it goes up (with the Fibonacci analysis), and approximate pricing, I set my target and it fired today, limiting my loss, but still more than I would have liked.
After today’s late day pullback, I did re-enter for a longer term position in this, so it is still in the portfolio, just changed up the position.
New Holdings:
NIO
My EV plays have been a bit rough. But, that was part of my learning. However, on one of my embedded watchlists looking for squeezes, I saw that NIO was squeezing across multiple timeframes.
Then, in looking at the charts, I saw that NIO was back up to its 78.6 retracement, almost fully recovered from its November high, as shown on the daily chart.
In the first half of the day, in looking for an entry. I put a limit order in at the bottom of the Bollinger band at that time. At times, it appeared I might be able to grab a quick 20% on a day trade, but it didn’t quite get there.
However, NIO was among those tickers that was hit badly by the events in DC today. I look for a rebound tomorrow and a climb as anything around green energy and reduction of fossil fuel use is likely to get a boost with the results in Georgia.
Other Holdings
Technology stocks took a bit of a hit today. In my case, $DBX, $PINS, and $SNAP all took a bit of a hit today, though not too bad in each case, as they looked as if they were trying to recover by the end of day.
$SRNE moved over a key resistance point for most of the day, and until the events in DC, it was serving as support for a potential boost higher. However, even after it fell under that line in the last hour, it bounced off the 30-hour SMA line as support. If the market is in a good mood tomorrow, I look for this to be back over the key ‘double-line’ on the fibs and getting ready for a move up.
$SURF was moving up today and I was looking for it to test the 50.0% retracement, but it pulled back in the late hours, like so many other things. After coming down some, it bounced nicely off the 23.6% retracement line as strong support, back up to the 78.6% extension. Looking for this to have a good day tomorrow.
Though not an option play, but as mentioned in previous posts, $SESN was firing up today. It came just short of my target of 1.58, just above the 161.8 extension/61.8 retracement line from my chart. I look for it to challenge that line again by the end of this week.