Options Portfolio Update – 2021-01-18
Current Long Options Swing Portfolio: $DBX, $ED, $KALA, $PCG, $SOLO, $ZNGA
Newly Added: $AAPL, $HBI, $SRPT
Profits Taken: NONE
Stop-Loss Activated: NONE
Day Trade: NONE
$DBX, $ED, $KALA, $PCG, $SOLO, $ZNGA, $AAPL, $HBI, $SRPT
As a whole, my portfolio was up on the day, though still relatively flat. I had a few entry target hits and some of the laggards move up a little.
Day Trade:
NONE
Taking Profits:
NONE
Activating Stop Loss
NONE
New Holdings
AAPL
$AAPL is forming a bullish, ascending triangle which appears to be very close to its apex. I was able to get in around one of the lows of the day today. I look for this to start moving up again.
The top of the flag is around 138 and change. As it approaches here, I’ll be looking to see how much momentum to bust on through. If it does, the next target is 155.25. If it stalls, I’ll take the 138 target as a nice win.
HBI
I like the $HBI chart and have for a few weeks. On today’s dip, I was able to get my entry for its current channel to play this out.
17.50 is my primary target. However, if it stalls around 16.50, I’ll take that win off the table and move to my next play.
SRPT
$SRPT had some not-so-great news with one of its studies not long ago and the stock took a HUGE hit. Like a number of folks I look at this as an overreaction, with the stock looking to move back in the upward direction, regaining a chunk of what was lost.
During the first hour of trading, I got my entry for this lottery play. My entry point was based on the action of the last few days, and not a fib line. However, from a target standpoint, I’m looking at the following:
Prior to the December run-up of the stock, it was hanging around the 61.8 extension from last year (about 142). This is my primary target for this. 130 is the bottom of the channel that it found itself in for much of last fall, so that is my stall target. Either way, it would be a very healthy gain. Stop-loss for this would be around 80, which was around the 2020 March lows.
Holdings
DBX
$DBX has fallen back to the bottom of its channel. If it falls down through the fib here, I will be looking to exit. So, I’ll be watching this.
However, with the action, I can see this testing the upper boundary of the channel by the middle of next week. When it gets back to the top of the channel, it either breaks through or I take the profit right there and not wait another round.
ED
Yes, this one is a bit slower in developing, but I knew it could be and planned accordingly with my contract month and pricing.
$ED was flat today, with the post-market going right back to where it closed on Friday. It is hanging just on the underside of the 23.6 retracement and using the 8-day EMA as support.
I’ll be watching for this to get above the 23.6 and start moving by the end of this week. The real key is for it to show at least some life that it wants to move back toward the top of the channel again.
KALA
After a number of days of big candles/wicks, the last few days has seen much less price fluctuation. The last couple of times that $KALA has done this resulted in a nice upward green candle. I’m looking for that, and this time, to establish itself in the next higher channel, as well.
PCG
$PCG has basically played the same daily price range for three days now. It should be resolving and making a move soon.
SOLO
Though $SOLO dipped under a key fib support, by end of day, it was back above it. I’ll be watching this to see if it has established itself in the new channel or whether it was a fake and will need a little more time to consolidate.
ZNGA
$ZNGA is still teasing, but it looks as it if it will try to test the 10.00 ceiling it has for itself again. Another positive day today and it settled in above 9.90 again.