Options Portfolio Update – 2021-02-04
Current Long Options Swing Portfolio: $BTG, $CCL, $CLR, $CSIQ, $GOCO, $HL, $JKS, $KALA, $NIO, $PCG, $SOLO, $SPWR, $SRPT
Newly Added: NONE
Profits Taken: $SURF, $UTZ, $HBI
Stop-Loss Activated: NONE
Day Trade: NONE
$BTG, $CCL, $CLR, $CSIQ, $GOCO, $HL, $JKS, $KALA, $NIO, $PCG, $SOLO, $SPWR, $SRPT, $SURF, $UTZ, $HBI
Though I still have orders in to get into some plays at what I see as a good entry, I have been looking to shed some of my holdings. Part of me feels over-extended. But, part of it is that as my portfolio has grown in size, I’m not used to seeing this valuation and the price fluctuations that come with it. So, with success, I’m having to adapt. But, at the same time, I try to have no more than 10 options positions at a time, and that number is a little higher.
With that said, I’m not looking to shed positions just to shed positions. There may be some positions that I am pulling back my target due to what I am seeing in the market: price action on the specific security, energy (or lack thereof) in the general market, and the cyclical nature of it.
On Monday, 2 tickers hit targets and sold ($SURF, $UTZ), where I took a little profit in a third, as my plan was not to hold through earnings ($HBI). [Though in this case, it would have been good to been too busy with other things and forget about it and look to have sold the position today. How the market reacts to earnings can be tougher to read than a professional card player with a big pot.]
As I’ve mentioned before, a portion of my small account has stocks, with much of that value being stocks that are in my “keep” category and are long-term investments (not for trading). However, even considering that those take up more than half the value of it, my account has jumped about 19% in the first two days of this week. So, thus, I feel that I need to capture some of those gains into cash.
So, on to the portfolio.
Day Trade:
NONE
Taking Profits:
UTZ
My target for $UTZ was around the $25 mark, which it hit Monday morning, giving me a little more than an 80% win. This was a relatively quick turnaround, as I held it for 3 days.
SURF
This is the 2nd time that I’ve played $SURF this year. This doesn’t have large volume of trades on the options side, so it can be a bit rough. However, it spiked up Monday in early morning action past my target around $12 and I was able to sell for a 45% win.
HBI
This was frustrating over the last couple of weeks. I was in $HBI for 14 trading days. At times it would show some life, but when it didn’t, it still hung above the stop-loss areas. It never really developed into the trade that I saw in the charts. Not everything does.
Another element to this was earnings, as $HBI’s earnings were released this morning. I am one who does not like to hold through earnings, especially as I have been mauled a few times that I had. Who knows how the market will react? So, by the end of the day, I made sure I captured a little more than a 10% win on the trade. (Had I held, yes, I could have made a few hundred percent, but that wasn’t the plan, and there was no way to know.)
Activating Stop Loss
NONE
New Holdings
BTG
The $5 mark is a key resistance/support for $BTG. That is also the strike price for my options. The fundamentals for the company (such as no debt and a healthy credit line), combined with the charts, make this a good play. Add in that certain commodities, such as gold, will do well with inflation and other issues that may impact the markets and the economy, I like this. In some ways, it is a hedge against a correction in the market. Though down a touch on this at present, there are no alarm bells signalling at this time.
CCL
$CCL is one of the holdings that I am considering taking my profits off the table. It is more susceptible to a correction than a number of my holdings. And, it is up a healthy amount, though it still has room to run to target. I had put a lower limit order in yesterday to sell, but it didn’t hit these last couple of days (just a little short). It is likely that I will capture my gains before the end of this week.
CLR
$CLR rose on Monday and played in about the middle of the price action from Monday on Tuesday. My target is still around $25 on this. Earnings are coming up in a couple of weeks, so, the plan is to be out before then.
CSIQ
This is one of three solar plays that found their way into my portfolio on Friday. Since then, all three have performed well. Though I thought $CSIQ may be the laggard of the three, it has performed well. I have a target around the psychological barrier of 65, which is a little lower than the 52-week intraday high. But, another day or two like we’ve had early this week, it can hit it in no time.
GOCO
$GOCO has been flat for a little while but staying above key support lines while doing so. Today, it tested the resistance a little over 15 (15.12) and stayed in that area. Should it break through that, it is a little trot to my target of 16.
HL
$HL stepped up a fib level on Monday and continued to trade in the new range today. It had broken above the level in pre-market trading but didn’t test the resistance again during the day (6.55). It is showing a little strength as I’m managing my revised plan after my FOMO moment last week with this.
JKS
$JKS was one of three solar plays that I quickly acquired last Friday, but it has been the laggard of the three. Part of that may be the result of political issues. From a chart perspective, this one seemed to have more room to play than $CSIQ but isn’t acting it.
It is green from where I acquired it. I would like to see a little more life out of it. As I feel that I’m a little over exposed in the solar area (3 out of my 13 current positions), I may be taking some profits somewhere and letting one go. If it doesn’t look like this will perform as well as the other two, this may be the one.
KALA
$KALA spiked up last week but looks to be consolidating so far this week. It is hanging out in a narrow fib channel (9.23 to 9.59). I look for this to push up through the upper line sometime this week, potentially reaching my target a little over that.
NIO
For a couple of weeks, $NIO has had light volume, well below its 50-day moving average. During that period, it may have shaken out many of its sellers. Today marked a higher volume than it has seen since January 22nd, and it was a very green day, with this ticker seemingly coming back to life.
It closed the regular session a touch above a key resistance/support line (62.77). If it pushes through that effectively, $NIO will likely challenge is 52 week high soon.
PCG
$PCG continues to move sideways, not quite getting through that $12 barrier, and not even really pushing up against it this week.
The fractal energy on the weekly, 4 hour, and 2 hour charts point to this having energy to start moving again. If it doesn’t show anything by the end of the week, it may be time to wrap it up and move on.
SOLO
$SOLO pushed itself up over a key resistance line today and appears to have held (8.77). Should it hold the line, a push higher toward 10 is likely. The expiration on my position here is months out, so I can afford to be patient.
SRPT
I got into $SRPT as a lottery play. Though I believe it will move up to cover a chunk of the gap, and potentially move up fast, that timing isn’t working out for me, so I may have to cut this as a loss soon. This was never really a regular play from me, but instead, something to take a chance on. Like many lottery plays, the tickets don’t win the jackpot. It doesn’t look like my numbers are being drawn.