you may know that I had credit put spread from last week on $NVDA if you read my previous posts. I entered in the money credit put spread two weeks ago collecting maximum amount of premium . by this way , I will lose less money if the stock do not reach my target.
NVDA was oversold and she was consolidating around 99-102. I scaled in 108/109 credit put spread( not debit) two weeks ago plus adding more 140/103 put spread yesterday and I was rewarded today.
$CMG is another good example. she is consolidating between 350 -410 for months and she is in good shape after company board change.
I bought some credit put spread on $CMG. today, it went from in the money to out of money and I made money. I am not going to wait for earning report and all my positions will expire this week.
I am eyeing on baba since she has earning report today. I will probably get in credit put spread soon.
I sold all $NVDA credit put spreads today right in open. I am glad I did.
Being long SNVDA has backlashes since she pulls back sometimes. it was lower high and she will go back again soon.
I took a short position in CMG and AMZN but CMG did not work the way I want. all of my AMZN credit call spreads worthless.
I flipped the 405/407.5 credit put spreads this week with 405/402.5 credit call for next week. I am long CMG and it selling for a couple of days in low value and I think she will break out.
I still have 10 credit put spread 108/109 which are in the money and loss. last week, I had put spreads which went out of money and I am glad that I sold them in open today.
I am still long $NVDA. Today, I exchanged all put spreads expiring today with next week expirations. so in order to do this trade, I took some loss with some stupid pride. I am still long and today action was not bad considering the lowest volume since that Mr. Left tweet.
I know today belong to market maker and he would do whatever he wants with his baby.so I think this $nvda will come back again like $AMZN did this week.
I also sold 20 next week 101/100 w3 put spread $nvda. I hope she holds 101.
$AMZN had a great run this week. While I was watching it while I was eating my lunch. I saw some volume which shows the seller getting in charge. go watch 1- minute and 5-minute timeframe from 11:30 until the close.
bought 20 w2 820/822.5 credit call spread risking 5000 dollars for collecting 1260 premium. I sold them before closing bell to avoid possible assignment and I was forced to give back 440 dollars to the market maker in order to close the trade.
10 w3 105/106 credit call spread $NVDA (this is hedge trade to protect me in case it goes down)
20 w3 101/100 credit put spread $NVDA
10 w3 104/105 credit call spread $NVDA (painful and in loss trade)
10 w4 108/109 credit put spread $NVDA ( painful and in loss trade)
I do not know when I am going to swallow my pride and take the loss . It is good to move on. But as I said in the title of post . I am stubborn.
the price action and volume are the most determinant of stock direction. I have studied the market using fundamental, news, technical , short-term .pundit opinions but when short-term.I think you need to forget it. Just focus in these two.
Let’s dissect $NVDA and VRX.
After some asset sale announcement two days ago. the stock $VRX sold heavily. volume jumped in the last two days but today in down market, she stopped going lower. she found support on 15. I think it is strong on this prices.I sold my credit call spread today with no loss or no gain.
Regarding the $NVDA,
she has touched 101 price target 4 times in last 10 days. I think it goes higher. she bounced back and she does not interested in going down so we will treat her as she like.
covered 10 credit call spread left only 5 on 105/106 w2 . made good $$$$$$
when the stock was around 102.12. I scaled 20 contracts 102/101 w2 put spread and I still have all put spreads from yesterday. Let’s see what will happen
I bought 10 credit put spread 104/105 w2 $NVDA when the market open with a hope that this stock lifted but I got disappointed by price action. I was biased long $NVDA and $VRX using credit put spread until today. After a careful look at charts, my bias is modified. I changed everything today by buying credit call spread. and selling some of the put spreads from yesterday. I took some loss but better than losing more.
I still have 10 credit put spread for w4 108/109 and 10 credit put spread for w2 104/105. I kept them as a hedge in case $NVDA rally tomorrow( I strongly doubted) since I am short $NVDA until the expiration of options this week, however, I am ready to get rid of put spreads soon.
price action is so poor for $ NVDA and $VRX. low volume and exhausted for $NVDA and a lot of sellers for $VRX. I think we will visit 101 $NVDA soon.BWT, There is no hope for $VRX too.
Below are my positions
15 w2 105/106 NVDA
10 w2 VRX 15.5/16 VRX
all credit call spread.
I know it sounds complicated, but I am transforming from long to short by adding call spreads and slowly selling the put spreads along the way.
Today we had a red day in NVDA but the action was not so bad. I sill hold put spread on 108/109 but I am in the money. no worries since I bought them when the NVDA was 103.
I think NVDA will attack 109 or 110 by Friday so my contracts will be out of money(worthless) if this is not a case I will roll over to next week.
I have also added another 10 put spread 108/109 w4 of Jan in pull back taking 0.7 credit per contract.
another trade which worth to mention VRX. I bought 10 put spread 106/105.5 for next week in pull back collecting 0.18. there is a risk if VRX will sell more and my contract will go in the money. I can lose maximum 0.32 but looking to the chart, 16 is a strong support.
Happy trading , happy life.
On December 28, Citron research induced panic sell on this ticker bringing down this ticker from 120 on December 28 to 99 on Monday, January 3.
Since then a lot of investment banks are posting upgrade saying impressed by NVDA presentation in CES2017 regarding Business with Benz. Audi and ZF
the EPS is going to double by 2018 according to management. although I am so cynical with these kinds of hypes, I bought 10 put spread 108/109 Jan 2w for 0.7 cents per each spread. if the price does not pass 109 by coming Friday.I am going to lose $ 300 . the chart saying it is going to come back
I will give updates during next week.