As the market is about to close for the day I see that the DOW is down again today, about 1.15%. Many of the stocks within my options account have decreased in value as well but currently I'm up just over 5% on the day. My largest position is in an Iron Condor with Apple (AAPL). The stock is trading down about 4.20 for a price of $445. This is still well within my Condor of $435 - $465. I actually adjusted some of this and now have 3 contracts of the 455 Call / 460 Call Credit Spread and 7 contracts of the 465 / 470 call credit spread. I now need Apple to stay within 435 and 455. I have a ten point cushion either up or down and I'll pocket over a 30% gain in one week on the position.
I divisified as well and have Iron Condors on the following stocks. These are all my favorite stocks to trade options with:
AMZN $268.28 1 Contract - I repositioned my 255/250 Put Credit and moved up to the 265/260 Put Credit after they announced they will be getting into the online grocery business. I also have the 275/280 Call credit.
GOOG $861 5 Contracts - I repositioned my 890/895 Call and moved to the 880/885 Call Credit Spread. I also have the 840/835 Put Credit Spread. I have about a 20 point cushion either up or down until Friday.
NFLX $222.20 4 Contracts - 210/205 Put Credit and 235/240 Call Credit. Looking good so far!
PCLN $796.72 6 Contracts - 770/765 Put Credit and 830/835 Call Credit. I'm up a lot on this position so far this week.
TSLA $96.75 - 8 contracts of 87.50 / 85 Put Credit (repositioned from 85/80) and 4 contracts of 105/110 Call Credit Spread. I also just added 2 contracts of the 92.5/90 Put Credit and added one more 105/110 Call Credit.
From the time I wrote this my account just gained another $60 so my day end gain moved up to 5.6%. I just love options and I love that I can make money when the overall market is down so much!
As you can see, I repositioned some of my spreads. I will do this if a stock has moved one way or the other by a decent margin. I can lock in the profits I had on the spread by buying it back and then sell another spread for a larger credit. By doing this I take on more risk so I need to anaylze if the reward is worth the risk and also I need to determine the probability of the stock price touching the strike price. I feel really good about all the repositions I did but I know AMZN and TSLA don't have much room so another down day could hurt me on these spreads.
Happy trading. Jonny
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