Option Strategies: JD, .SPX, COIN& TSLA
Hello everyone! Today I want to share some option strategies with you!
1.
Our optionselling recap for the week ended Nov 10.
Tickers traded: $Coinbase Global, Inc.(COIN)$ $Datadog(DDOG)$ $S&P 500(.SPX)$ $Tesla Motors(TSLA)$ $Twilio(TWLO)$ $S&P 500 Mini-SPX(.XSP)$
Net premium booked as profit = $1,054.80 Not gonna lie ... definitely surprised to pull out a green week considering the big losses we took on SPX. We're gonna view this week as red in order to motivate us next week to make up the $30K in losses.
Re: the losses ... what went wrong and what should we have done differently ...
1. Got off to a bad start trading SPX on Monday. Took a loss. Never got a good read on or feel for SPX throughout the week and took wins and losses combined, but the losses far outweighed the wins. Should have just quit trading SPX on Monday.
2. Because Monday started off on the wrong foot, we overtraded on SPX the rest of the week to make up for it. We got greedy. Probs should not have done that.
3. Broke our trading rule (again) ... which is to not trade any position that has to be monitored closely during in-office work days because we cannot react quickly and sometimes can't react at all if the trade goes bad. Did that on Thursday with SPX and got punished.
4. Also broke another rule which is to not trade on FOMC days or days when big economic events (ex: bond auctions) are happening that could sway the market intraday. Did that on Wednesday and Thursday. Got punished on Thursday with SPX. This one was on us due to our stupidity and ignorance.
Anyways, we need to take a step back and get our overtrading and rule-breaking under control. The question now becomes ... do we continue to trade SPX or go back to focusing more on our bread-and-butter earnings plays?
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2.
Here are the stocks we're looking at for optionselling plays this week:
- $Monday.com Ltd.(MNDY)$ (currently have Dec 15 105/100 put credit spread in play)
- $Palo Alto Networks(PANW)$ (190-200 strikes for a put credit spread)
- $Alibaba(BABA)$ (90 call strike for a CC position, not sure on put strikes yet but am looking at a put credit spread as well) - $JD.com(JD)$ (targeting the 18 put strike for a 5-year low)
- $Target(TGT)$ (targeting around the 85 strike for a pandemic low)
3.
$JD.com(JD)$ is an optionselling trade we are looking at for an earnings play this week.
This stock has been beat down so much. The 18.5 level would be a 5-year low if it hits post-earnings. Looks primed for a pop back up, but don't quote us on that.
We're targeting the 17.5 or 20 strike and will probs go 30+ DTE out to get better premium.
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