2/2/24 - Trade Talk Post
Hi readers! I hope everyone is doing well!
Today, since it is Trade Talk Thursday, I will be going over the adjustments I made to my positions over the week, and why I made those adjustments.
Over the past week, AMD broke it's support level and came back down to it's previous consolidation level. Then, AMD came back up and is currently a little bit above the support level I mentioned earlier. For AMD, due to the HUGE downside move, my position was losing money on Wednesday. I then calculated the greek values for the AMD position, and I had some huge positive deltas. So, to bring those back to near 0, I bought 10 of the Feb 16 $170 puts. This heavily brought down my deltas, and it also hedged my position against another downside move. On Thursday, AMD went down again, so my long put picked up some profit, but then after the huge move up to the previous key level, the puts were losing money but the overall AMD position was up money, due to my Feb 09 short $167.5 puts and the Feb 16 long 160 calls gaining back their heavy profits.
On around Tuesday, QQQ broke the trend line and went down by a LOT. It stayed around there for a bit, then on Friday, it went up 13 dollars a share to come back ABOVE the trend line. During that time, when QQQ went down, the profits on the overall position decreased by a lot, but the Feb 09 long $425 puts picked up a lot of profit. The $406 long calls and the $410 short puts lost a lot of their profits, but since the calls were still in the money and the short puts were out of the money, they were still profiting. But, when QQQ came back up heavily on Friday, the long puts lost their profits, but the overall QQQ position regained its previous profits and some more due to the short puts and long calls regaining their huge profits.
In the upcoming week, I plan to just maintain the deltas of the AMD position near 0, specifically the deltas and the thetas. For the QQQ position, I will just hold it out until expiration, which is Feb 09 (next Friday). If necessary, I will be making small adjustments on the QQQ position, in the case of a huge downside or upside move. I also see that QQQ is at a key resistance level, It broke the resistance level and made a small drawback to it to retest the level. If QQQ shows major signs of going back down, I might buy some puts, short some calls, or even short some stock, just so I can effectively improve my profits from a potential downside move.
Anyways, that is it for today's Trade Talk Thursday post! Thank you for reading, and I will see you in the next update (Strategy Saturday/Sunday)!
Pictures:
Wednesday:
Thursday:
Friday: