Hi readers! This is a routine update on my blog. I made a couple of big trades this week, and this update will talk about those big trades.
First, for QQQ, on Wednesday, I bought 10 short shares to improve my theta situation. Since the theta (daily decay) was eating up my position, since I was long options, I shorted 10 of the Sep 29 382 calls to ease up my theta. Shorting the options also provided me with some credit that helped out with the premium. On that day, my put was winning, but not as much as my calls were losing. So, to lower my losses, I shorted the calls. During that day, QQQ actually went down near the end of trading hours, and my short calls picked up, so my losses were lowered significantly. But, unfortunately, QQQ went back up the next day, increasing the losses again. But, today, I exited out of the 372 calls I had and bought 8 of the Sep 29 369 calls, to equal out my delta. I did this since QQQ was at around 376 at the beginning of the day, but it made a really big move to the downside, and it was near 371 when I bought the 369 calls. I did this to widen the position, and to, again, hedge against another big move to the upside. Also, the credit I received for exiting from the 372 calls pretty much paid for all of the 8 469 puts I purchased. The puts would go out worthless if QQQ goes at around 373 and above, but since I widened the calls, the calls would make some money at that point, although it would not be too much. Since the premiums are really high for the puts and calls I bought for QQQ, the breakeven points are conflicting each other. Maybe something I would do on Monday is widen the puts a little bit to ease up the breakeven points, so there will be a position where I could be making money on both the puts and the calls. To help pay for the extra premium on the new puts, I might short some more options, which would also relieve theta stress.
Another big trade I did was purchasing an ATM (At-the-money) AMD time spread. I shorted 20 of the Sep 22 108 calls, and bought 20 of the Oct 13 108 calls, both for AMD. I made this trade recently, and it is losing right now. But, I am waiting to see what happens and then I will adjust the position based on that.
Here is a picture of my position right now:
I am really excited about the QQQ changes, and I am hoping to widen my position on Monday. I will wait and see what happens to AMD, but since I bought it, AMD stock has went down, resulting in an overall loss in my AMD position.
I hope you enjoyed reading this post readers! Until next time, and see you in the next post readers!
