The day after the massive Fed-induced rally the markets took a breather and only the Dow closed in the green, though that was only at a fractional amount.
Despite the lack of direction, some individual stocks did really well today and some of my favorite trades started to pan out.
I've been bearish on gold since the Spring and we finally headed towards the June lows, with the precious metal falling nearly 4% to 1189, only $9 away from its multi-year lows. The GLD puts I bought @ .46 yesterday closed at $1.45, and I think we continue to fall tomorrow.
MLNX was a text trade idea this week. It's a stock I have spoken about a bit over the past few weeks and it finally looked set to break out in a major way after testing the $37 level. Unfortunately, the stock didn't cooperate. That is, until today. MLNX ramped from the open, hitting an intra-day high of $39.73.
The text idea I sent out @ .30 x .40 looks much better now with MLNX options hitting .90 and closing at .60 x .75. That just goes to show you that you never count a position out. I love MLNX and will have more on that one in the coming weeks. MLNX is also one of my top picks for 2014.
SCTY has been on my watchlist and "week ahead" posts since the end of the summer and days like today show why I make sure I have a position every week. SCTY ramped out of the gate and hit a high of $58, making the $55 calls I bought @ .50 worth $3.40 each. I also bought some of the $59 calls this morning @ .10 and those hit a high of .75. I still love SCTY and this stock is yet another one of my top picks for 2014.
GOOG hit a high of 1091.99 and the 1095 calls I bought yesterday @ .69 average hit $2.70. I didn't sell them, but smart folks should have. I still think it rallies tomorrow, but nothing is certain.
I also sold some CROC $47 Dec calls I've been holding for a few weeks @ .50 from .55. They expire tomorrow and the options/stock are very illiquid. I didn't want to risk getting stuck in the position despite my continued confidence in the Australian dollar weakening.
My FB $52 puts actually hit .17 today from my .22 entry. I didn't sell, as they're my $220 protection on any market downside.
Here's the trading week so far:
SCTY $55 calls .50 to $3.40 so far (still open), $500 risk.
SCTY $59 calls .10 to .75 so far ( still open), $100 risk.
GOOG $1095 calls .69 to $2.70 so far (still open), $690 risk.
MLNX $39 calls @.35/.40 to .90 so far (still open), $390 risk.
GLD $116 puts @ 46 to $1.45 so far (still open), $460 risk.
FB $52 puts @ .22 to $.17 so far (still open), $220 risk.
Right now, the Facebook puts are off the table. I'll update tomorrow, after I close some positions. I hope this helps some folks.
I'm really in love with SCTY and MLNX now and I'll have some in-depth posts on them over the coming days.
Have a great afternoon!
- JB