See the original plan to go from $1,000 to $10,000 right here.
Future updates will have a whole lot more information, but so far we only have 3 trades that have been closed out. I’ll be posting per trade profit and loss on future updates, but for right now it’s a little sparse. All in all, had a great call with AMD but also had a couple trades go against me (BABA, GS). We’re riding break even right now with a total of 4 open positions.
Connect with me! Join me in my chat group, hit me up on Stocktwits (jbabin387) for info. We talk options all day and for a little bit the room doesn’t even cost anything. Come say Hi!
Fair warning, these charts are messing because they contain way too much information. A lot of this is just left over markup from daily monitoring, ignore the mess, enjoy the idea.
Position 1: AMT Long Call Options 17 NOV 152.5C
What a messy chart. It’s not following any clear path, just higher highs and lower lows after that horrible dip in the morning. It almost had me cutting losses, but I knew it would retrace a bit so I figured I’d give it just a little bit of time to see what it gave back. I’m lucky I did, because after the initial dip it started a slow grind up to challenge some of the key support/resistance areas from Monday.
I was not feeling good about this trade after Monday close with that extremely bearish final candle. My fears were validated on the morning dip, but then it just started to grind higher and higher. This was the ONLY green position in a down market day. That, combined with the bullish finish and challenge of yesterday highs makes me confident about this moving forward.
Remember, I got a bad entry into this at $150.8, so I’m going to need to see about $151.50 at this point to green. I’m comfortable with that, because I think that the $154 price target is still realistic. I’m happy about this position.
Position 2: TEAM Long Call Options 17 NOV 50C
Another messy chart. I was happy with Monday’s close, you can see it was very bullish. Gap up in the morning only to give it all back and challenge the original cup and handle breakout. It passed and moved on to newer highs, but not without testing my finger on the sell trigger. Overall, I’m still happy with this position, but I didn’t like the lower volume and the fact that it didn’t seem to be out performing the spy even with it’s breakout yesterday.
However, I believe the Large green channel to be predominant as it extends through the entire rise. So long as it’s within this channel, I’m happy to stay in this trade. The purple channel was created after a few rejections of the green channel. The purple channel represents less momentum. Either channel gets us to our price target before expiration, and will be adding enough intrinsic value to the calls to be worth staying in for, so as long as we’re still on track I’m going to let this ride. It’s nice to have a clear exit point to keep any loss at a minimum.
I’m very cautiously optimistic about this one. A lot of it will depend on overall market action.
Position 3: YELP Long Put Options 17 NOV 44P
This is just a chance at a great return, with a clear exit point if it starts to go against us. It’s a 3:1 reward-risk ratio, so this is one I’m happy about. It was entered at $45.07, and so long as it doesn’t break the descending trend line this is going to be golden. We have 18 trading to break the lower trend line to keep our thesis in tact on this one, if not this put will be sold, but only at a $40-45 loss. This one is very binary.
I grabbed this after the SPY started to break down pretty hard mid morning. It was the first thing on my watch list that was clearly indicating if I was going to take it, it should be now.
Position 4: SPY Long Put Option 17 NOV 258P
Finally a better looking chart! But admittedly not a high confidence play. I took this as a hedge since 50% of my current funds were tied up in long calls that depend on at least a little overall market strength. If that strength tanked, so did my calls, so I took a half position SPY put to help mitigate that loss.
It’s not a terrible play on it’s own. We can see the rising wedge that it’s currently in, and it’s in the top half after just hitting the upside of it. The lower trend line is at $257.50 right now, so this still has a chance and doesn’t require being bearish on the market overall.
You can bet though, if we hit that upper purple channel line, I’m gonna short pretty hard!