- +4 STX 57.5/60 Apr puts @ 1.00, now 0.64 -$144 (entered 2/6)
- +8 INTC 34/35 Apr calls @ 0.50, now 0.52 +$16 (entered 2/13)
- +6 XLU 45/46 Mar calls @ 0.50, now 0.60 +$60 (entered 2/18)
STX has been breaking my balls, and now its time to get serious. Down $144 is not what I want, and the modifications I made to cut losses in TLT certainly did not work. I ended up closing that one down $60. Although STX has not broken out of the gap resistance, I'm losing a chunk of cash. If it breaks out, I will just close it and take the hit.
Going long INTC is the opposite of STX; both charts look very similar. I chose to go long INTC because it is in a multi-year uptrend, and after gapping down has had some upward momentum, as shown by the MACD/CCI crosses. In the past two days, however, INTC lost some of that momentum, so we'll see what happens. With my luck, STX will break out and INTC will break down. What a crapshoot month it has been. My plan is to leg out once it passes gap resistance.
XLU hit a good support level and took off on Wednesday, helped by the Fed comments on remaining patient with a rate hike (ya'll know what I think of that...) This is a utility stock ETF, and utilities are kind of used like "stock bonds," meaning that investors usually buy them for their yield, not capital gains. It too lost some upward momentum off that support bounce, but I liked the price action on Friday, where it recovered from being down 1.5% to lose green 0.05%. Because there were no April calendar options available, I had to go into March, giving me a short time for this to play out. My plan is to have this position closed by mid next week, regardless of where XLU is at, due to theta decay.
No comments:
Post a Comment