Loss of $528.24 Weekly Option Journey #16 Fear of the Market
The big wave is coming. Two major things were happening while this weekend has passed. The first thing is the great news which is the 900 Billion Corona-Virus Bill has passed with the House and the Senate. It will boost up the economy. This is the plus sign for it.
The other one was the Corona-Virus concern rises in UK region which leads the market to drop. The general market was down around 1.5% before the market open. However, when it actually open, it was around negative 1% in S&P, and for the Nasdaq was down 0.7%. Since the market is going down, Zoom (ZM) is up around 3% where most of the market is down. ZM was one of my watch lists but it went up too much today. So I decided to only sell 5 contracts instead of 10 contracts. My view on the stock is not going down below $400 on the Zoom. It actually did a great on earning, yet, it went down about 20% for it. It means it has a high probability that it will not go down more. It should be going up. At least it should sustain as long as the market is not going down too much.
As I have everything on Tesla, I also did a cover call for Tesla as well. It was $720 with around $8 premium. It expires on 12/24/20 Thursday. 12/25/20 is Friday and it is Christmas. It means the market will close on 12/25/20. All my position should be closed before 12/24/20.
Last but not least trade for the week is one of my favorite stock SQ. I do not know where is the stop for this stock, but it keeps going up. I will do a vertical spread until it will reach to the top. I am reducing the position to 8 contracts at the moment due to too much appreciation in the stock. However, it started to go down rapidly this morning. I decided to take the loss and close the position with the loss for this trade.
In times like this, I need to wait and see how the market does. Be patients.
Closed Trade:
SQ 8 Dec 24 225/230 Put Vertical @0.7397 closed @ 1.4 loss of $528.24
Open Trade:
TSLA 1 Dec 24 720 Cover Call @ 8.3447
SQ 8 Dec 24 225/230 Put Vertical @0.7397
ZM 5 Dec 24 395/400 Put Vertical @0.9396
Current Position:
ZM 5 Dec 24 395/400 Put Vertical @0.9396 TSLA 1 Dec 24 720 Cover Call @ 8.3447
TSLA: 114 shares
======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option
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I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only.
Option trading bears high risk and high return strategy for trader.