Options Portfolio Update – 2021-01-31
Current Long Options Swing Portfolio: $ACB, $CCL, $GOCO, $HBI, $KALA, $NI, $PCG, $PINS, $SOLO, $SRPT
Newly Added: $CLR, $HL
Profits Taken: NONE
Stop-Loss Activated: NONE
Day Trade: NONE
$ACB, $CCL, $GOCO, $HBI, $KALA, $NI, $PCG, $PINS, $SOLO, $SRPT, $CLR, $HL
Can we say that this past week was surreal? For those who have profited on $GME and some of the others where the shorters are being targeted, congrats. Just remember to give the IRS their share of your profits. Even Al Capone couldn’t evade the IRS.
However, the effect that those events had on the rest of the market had impacts elsewhere, which brought down the market as a whole, especially as we edged closer to the margins being called. I’m planning to post some additional info and thoughts on this a bit later.
In the meantime, the volatility of the market at this point needs to be watched closely. I will be tightening some of my targets to better ensure that I do get to reap profits in a number of positions. For some others, I will be looking at possible stop-losses.
I will also be looking into incorporating some additional methodologies into my strategy. I’m in the process of learning more about a couple other strategies and will likely picking up some pieces from there to help better solidify my overall strategy.
On Friday, I didn’t take any profits off the board yet, and then many of those slipped a little into red late in the afternoon. So, I’ll be looking to ensure that I preserve my capital.
Day Trade:
NONE
Taking Profits:
NONE
Activating Stop Loss
NONE
New Holdings
CLR
$CLR showed up on my Finviz scan as something that is likely to benefit from the current conditions. It retraced some on Friday and it hit my entry for a medium-sized position.
It is currently trading around a 261.8% extension with the 34-day EMA being good support as it pulls back a little for each step up. My target is a little short of the 423.6% extension on my chart ($25.52).
HL
$HL is another position that showed up in my Finviz scans late last week. And, as silver seems to be the next target for attacking the shorts, I was able to pick up a position for what may be a bit of a discount, should they price of silver get driven up this week.
Holdings
ACB
At one point on Thursday, I was thinking that $ACB would hit my target. However, overall market volatility stopped its upward movement and caused a bit of a retracement. It is still green, and I do look for some additional momentum this week. I will be watching the price action this week to see if I need to bring back my target to an intermediate target. However, at this point, this is one whose target I’m leaving alone.
One of the questions that I’m thinking through are what my thoughts for are how $ACB will move as we get closer to its earnings call on the 11th. I do not want to hold through earnings, but if I believe that there could be a run up, it may be worth holding until it is closer if it doesn’t hit target.
CCL
$CCL was another that jumped into positive territory and was closing in on my target, but like everything else, it pulled back with the market. This is one that I will likely pull back to an intermediate target depending on the pre-market conditions.
GOCO
$GOCO has been market sensitive. If the market is not looking well this week, I may be implementing a stop-loss. $GOCO’s earnings isn’t until the 24th, but I’m not looking at holding on to this through then.
HBI
$HBI started moving and was closing in on its target until market volatility took over, like others above. Earnings is on the 9th before market, so I am looking to see if it may move up a little as we get closer. I will likely be adjusting my target downward depending on how Monday goes for the market.
KALA
$KALA has been a little bit of a roller coaster the last couple of days. But, this is a longer play as I am awaiting a catalyst for this biotech. So, I’m not too worried at this time here.
NI
Just another quarter or so on Thursday, and this would likely have sold for a nice profit. With an increase in its dividend (announced a few weeks before earnings) and earnings in a couple of weeks, I am looking for this to rise in anticipation of good news prior to the 17th. So, I will have no immediate change for targets on this.
NIO
Looking good, and then not. That was a theme from Wednesday through Friday. The Chinese EV tickers have a good catalyst this week that will likely help spike their interest and their price, as the January Chinese EV sales numbers are being released this week.
PCG
Can we say annoying? That’s what this position is to me. Thursday was a big green candle for it, as it showed some life. And, as the market sold off on Friday, it didn’t move down much from its close on Thursday, and in fact, it finished the day slightly higher than its open. That could be a sign of good news. However, as it lingers lower than I want and not too far from the stop-loss, I am watching.
PINS
$PINS has earnings on 2/4 after the market closes. I’m looking for this to rise in anticipation of earnings. The market could have an effect for how it moves (how much it moves), so I’ll be watching as I plan to be out of this before earnings.
SOLO
Though $SOLO isn’t a Chinese EV company, it could also see a positive impact by this week’s Chinese EV numbers. I am able to play this as a longer play, if need be. But, I don’t want to and will be looking at whether I need to adjust down to the stall target.
SRPT
I got into this and was too greedy. I didn’t really have a plan, and if I did, I likely would have been out of this with close to 100% profit within a couple of days. Now, it has pulled back and I have a bit of a loss on my hands.
The company has a number of positive revenue streams and was knocked back with a setback for one of its trial drugs. Any number of various catalysts could spike this quickly. It is still above my stop-loss area, but I would like to see it pick up sometime this week.