February 9, 2024 ---- Weekly Recap and Market Analysis

Hi readers, I hope everyone is doing well! This is the post, where I will be doing a recap of what happened this week with the stocks and my options position.

** A side note: Whenever I mention "the day", I mean trading hours. I wanted to mention this to avoid some confusion!!

Tuesday (February 6):

By the end of Monday, QQQ had come back to its supply zone ($428 - $429) and had ended the day at that area. On Tuesday, it actually respected that area and rejected it, going back down to around $425.50. Throughout the day, it had went up a little and came back down, and near the end of trading hours, it started to come back to the previously mentioned supply zone. QQQ had ended the day at around $427.55. This meant that my QQQ position was still profiting a lot, as my calls and short puts were WAY MORE in profit than the puts I had on as a hedge. My position was profiting around $15,000.

By the end of Monday, AMD ha come back all the way down to its key area of consolidation and supply, at around $167-$168. Throughout Tuesday, AMD dipped a little below that zone and just hovered around that zone. So, I saw very little fluctuation in AMD on Tuesday. As a result, not much change in the AMD options position from Monday to Tuesday. It was maintaining its profit of around $2,000.

Wednesday (February 7):

On Wednesday, QQQ actually opened right above the key supply zone. Right after markets opened, QQQ went back to touch the supply zone, and then proceeded to make a huge jump upwards to around $432.50. For the rest of the day, QQQ just stayed around that price by going back down to around $431 and then back up to $432.40. QQQ then ended the day by going back down a little and ending at around $431.60. So, there was some huge volatility in the beginning of the day and low volatility for the rest of the day. This big spike upwards also catapulted the profits on my QQQ position upwards, to around $17,400. The long calls made money on the upside move, the short puts made money on theta decay and being out of the money, and although the long puts lost even more money, the profits heavily outweighed this. The puts were there just in case of any downside moves, as a hedge, and if one were to occur I would adjust the overall position accordingly. Due to the huge upside move, the profit on the QQQ position jumped to around $19,000.

On Wednesday, AMD made a similar move as QQQ, going all the way up to around $172.90 within the first hour of the day. Then, AMD proceeded to retrace back downwards, reaching around $162.50 by the middle of the day. Then AMD went back up to around $171.4 before going back down a little and ending the day at around $171. So, AMD displayed HUGE volatility throughout the whole day, basically. However, the options position on AMD did nto gain much profit, only about $200 on the whole day, as the amount of hedges I had on were basically equal to the amount of main options I had on. Essentially, the options that profited cancelled out the options that were placed as a hedge. The profit on the AMD position was at around $2,200.

Thursday (February 8):

On Thursday, QQQ did not move much at all. Through the day, it basically went up a dollar, consolidated there for most of the day, and came down around a dollar, ending the day at around $432.71. QQQ displayed ver, very low volatility on Thursday, and consequently, my QQQ options position did not gain much profit other than the theta decay from the short puts.

On Thursday, AMD displayed HUGE moves during the beginning of trading hours, opening at around $170, going up to around $172, and going all the way back down to around $170, all within the first hour of the day! During the rest of the day, AMD made a huge jump back up to around $171, then consistently dipped down to around $168.7, ending the day there. The AMD position's profit did not change much, as Wednesday's ending price and Thursday's ending price were not so far apart.

Friday (February 9):

Today, QQQ consistently made moves upwards, starting with a huge jump upwards and maintaining that momentum. QQQ eventually closed today at a price of $437.08. Basically, QQQ went up around $5 today overall. This shows that QQQ had good volatility today, but no intraday volatility, as QQQ only went up today. As a result of this huge momentum upwards, my options position on QQQ gained some serious profits, at around $24,000 in profits for the overall position. Since the position actually expired today, I closed it, and secured that $24,000 profit!!! This position was a great success, and I hope to continue this into the next QQQ position.

Today, AMD opened at around $171, and went down on the first candle. Then, with the next 3 candles being large green candlesticks, AMD reached around $173.80. Keep in mind that I am referring to the 15-minute chart, where each candlestick represents 15 minutes. So, this all happened in the first hour of trading. Then, AMD retraced back down, reaching around$171.20 near the middle of trading hours. AMD eventually cam back up and closed at $171.42. Today, there was some great volatility in AMD, and overall, AMD went up like crazy today. The profit on my AMD position was at around $1,000 before closing the short 167.5 puts which expired today. After, the profit of the overall AMD position was at around $5,500.

I will be uploading a post (or posts) for Options Trading lessons and Market Analysis this weekend, be on the lookout for that!

In the Options Trading lessons, I will continue to explain options trading concepts for those who are unfamiliar with trading, and I will also discuss what I learnt from the recently closed QQQ position. In the Market Analysis post, I will analyze the action and charts, and I will discuss what I think will happen for the stocks in the upcoming week. I will also talk about what positions I plan to make on Monday.

That was the lengthy update for the whole week, we had some very volatile days and some more steady days. Overall, this was a great week, and I look forward to the next week!

Pictures:

AMD and QQQ charts:

Tuesday: