Options Portfolio Update – 2021-01-25
Current Long Options Swing Portfolio: $ACB, $DBX, $ED, $HBI, $KALA, $NI, $PCG, $SOLO, $SRPT
Newly Added: $AAPL, $CCL, $PINS, $GOCO
Profits Taken: $NIO, $CRSR
Stop-Loss Activated: NONE
Day Trade: NONE
$ACB, $DBX, $ED, $HBI, $KALA, $NI, $PCG, $SOLO, $SRPT, $AAPL, $CCL, $PINS, $GOCO, $NIO, $CRSR
Markets were mixed today, but my portfolio had a good day with a nice overall gain, thanks to trading to my plans.
The day started quickly. I hear the bell and then the alerts go crazy behind me as I’m working on something for my day job right as the market opens. My $NIO position hit target right away and sold. Seconds later, I picked up $CCL at my target entry. And then, not even five minutes later, $CRSR hit target and sold.
And then, shortly after 11 am, I hear three alerts within a span of about a minute as 3 other positions hit their targeted entry as the market had a big dip.
One good thing about using charts and Fibonacci is finding good entries and exists. The two positions that sold happened right away were close to the high of the day for each. And, the three that I picked up on the dip were at their lows of the day. As for my $AAPL position, it was THE low trade of the day for that option selection. All three closed significantly up from where I purchased them.
Plan your trade. Trade your plan. Don’t chase. And don’t get FOMO.
Day Trade:
NONE
Taking Profits:
NIO
I picked up a position in $NIO on Thursday on a small dip, and it didn’t take long for it to be heading higher. Today, it had gapped up to start the day, which happened to be at my target, just above a 161.8% extension, and the limit order executed only 2 seconds into the day for a 75% win.
After that, between work and watching other positions, I didn’t pay $NIO any attention, assuming that it probably went up. But, in looking at its chart at the end of the day, I see a potential re-entry in the exact option that I had, at the price that I originally purchased it at. So, I have a re-entry order in should it dip a little more to get there.
CRSR
I got this one on a pull-back early Friday afternoon after a big run in the morning. Like $NIO, $CRSR started the day with a big gap up. I had my target around a 50.0% retracement on my chart, and it hit it at 9:34:18 for a quick, swing 47% win.
And also like $NIO, $CRSR fell within minutes and never recovered to those levels for the day.
If this had a larger short float with a high short ratio, I likely would have made my target at the next level, as a spike could have caused shorters to cover. However, as it didn’t, I used a moderate target at the top of the channel it was in as my target.
Activating Stop Loss
NONE
New Holdings
CCL
$CCL was on my list last week and my limit order to attempt to pick up a position was still in. Right off the bell, it hit my purchase target. Unfortunately, it continued to fall with the rest of the market.
After the dip, it stabilized a little higher, but it still finds itself under the fib lines that I was looking at longer term support for a little run up. It didn’t find its way down to a 78.6% extension for support at the next level down. But, I’ll be watching this to see if it tried to get back over previous support and what happens.
If it falls below the 78.6, it may be a quick good-bye to limit the loss.
AAPL
After my initial position that I picked up with $AAPL last week hit my target and sold on Friday, I was looking to get back in. So, in looking at the chart, I picked a point right under strong support should it take a brief dip, knowing that it should rebound back off the support.
I was rewarded for not chasing a re-entry, as I was able to re-enter at a good entry point for another ride back up, as I got it at the exact low of the day. It bounced up and after settling on the VWAP, it ended the day almost double what I paid for it.
My initial target for $AAPL tomorrow is around today’s high of 145. I’ll adjust as needed tomorrow. My goal is to be out of this before close of market on Wednesday.
PINS
Another options position that I picked up in the minute of the dip was $PINS. I had targeted an entry around a 100% retracement line on my chart. $PINS dipped, hit that line, and then bounced off in great fashion. As it hit that line, I found myself in my 2nd position in $PINS this year.
By the end of the day, it had regained most of what it lost prior to the market burp. And, as for my position, it is currently up more than 40%.
My initial target is around a 161.8 extension a touch over 79. However, if this shows a lot of strength, I may let it run to the next fib level around 89.
GOCO
$GOCO is a channel play that I had been trying to pick up for about a week. Again, the market dip allowed it to come down just above a strong support area where there are two fibs (a retracement and an extension) close together at the bottom of the channel. My order executed, $GOCO then recovered some from that low, with the position sporting a 13% growth in value since the purchase.
I believe this can break through the upper end of the narrow channel this time and sing up. My stretch target is resistance around 20. However, my stall target is what looks to be what could be strong resistance around 18.25.
Holdings
ACB
Pot stocks had some profit taking today in general. Combine that with Friday’s news of the stock offering on Friday, and $ACB is definitely down some. It did hold above the lower end support lines for my play, so it is still in the portfolio. But, it will need to be watched.
With that said, many reports state that it is very likely that there will be at least one more major merger for pot stocks early this year. One of the more likely scenarios involves $ACB acquiring $SNDL, which now also own’s a substantial chunk of the debt of another pot stock. $ACB is trying to court Tilray but wasn’t able to seal that deal. So, is the stock offering a means to raise the cash for a purchase of another company? (For full disclosure, I also have a stock position in $SNDL that I have been selling covered calls against for the last couple of months.)
DBX
$DBX ended a little down, but mostly flat on the day. It is still consolidating on this level. I did pick an expiration for this play a little further out, knowing it may not move quickly. So, I have some time before time decay starts to kick in.
ED
$ED had the best day it has had in a while, pulling it out of the red and into the green. Now that it has shown some life, I’d like to see what it can do.
HBI
Though $HBI finished mostly flat and a touch down from yesterday, it showed a bit of price action early, and during the market dip, it only fell to the multi-day VWAP. It looks as if this is about ready to start moving back to the top of the channel.
KALA
$KALA slid through the market dip, and then slid again during power hour, moving under key support. However, in three straight after-market sessions, it has seen huge price swings pushing the prices in those sessions much higher. Like a couple positions above, I have an expiration date a bit out as I wait for its next catalyst.
NI
$NI started the day lower and then rose higher until the market dip. It bounced down to the multiday VWAP, bounced back over a 23.6 retracement, moved a little more, but finished the day around there. This showed some life in a day with a mixed market, finishing higher and not being crushed by the market dip. It looks like it is getting ready for a move up.
PCG
$PCG is getting closer to the stop-loss area. I’ll still be watching this and likely let it go if it falls under target 50.0% extension on my chart.
SOLO
$SOLO followed much of the market pattern today. Up early, dip late morning, settle back in and go flat the rest of the day. Overall, it was slightly up for the day, but it is good seeing it have some life. It should be noted that $SOLO held up better than $NIO and finished slightly positive.
SRPT
Looks like the shorters had a day with this one, as it fell early and only recovered to the multi-day VWAP late in the day. This one was a lotto play for me to start, and still is. It is still well above my stop-loss and I still feel this will pop some in the coming week or so.