April Options Expiring Today - Here’s What to Do

April 16, 2021

Dear Trader

Today is April monthly options expiration… 

…And we’re going to see a little bit of spring cleaning on our positions. 

That’s because we have a few trades that expire today.

Taking money from the market’s is challenging, especially when you are staring at red on the screen.

Dealing with losses is the toughest aspect for traders to push through because of the fear, but also the emotions that get strummed up. 

We’re in this together and make sure you keep your head up.

It was another quiet week as stocks tiptoed higher.

Now, The CBOE Volatility Index (VIX), aka the “fear” index, is still above our key 15 levels, trading at 16.35.

That makes two weeks in a row that we closed under 20, which had been previous support for the last year. 

It’s easy to get comfortable, but we have a lot of road bumps coming ahead. 

Buckle up that chin strap because the second half of 2021 is going to get interesting. 

Now let’s talk shop.

Portfolio Update

Today, these positions expire.

  • Cameco Corp (NYSE: CCJ) April 16, 2021, $22 call (CCJ210319C00022000)
  • International Game Tech (NYSE: IGT) April 16, 2021, $21 call (IGT210416C00021000)
  • Lumen Technologies, Inc. (NYSE: LUMN) April 16, 2021, $15 call (LUMN210416C00015000)

Unfortunately, we don’t have more time for these positions to play out.

There’s nothing that you need to do, and they will be removed from your account over the weekend.

Taking losses isn’t fun, but without the bitter, the sweet isn’t as sweet.

But remember…

The sweet part is making money and losses are part of the process.

Our limited risk options allow us to trade profit opportunities with greater flexibility — and much higher potential gains than buying stocks outright.

And we’ll have a brand-new batch of trades coming in a few weeks for another shot at quick profits. (So, keep your head up and focused!)

Here’s a  recap of what we did this week.

On Tuesday:

Buy-To-Open the Apple Inc. (NASDAQ: AAPL) April 23, 2021, $139 call (AAPL210423C00139000).

On Thursday:

Buy-To-Open the Rocket Companies (NYSE: RKT) April 30, 2021, $24 call (RKT210430C00024000).

Right now, we’re holding:

  • Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
  • NRG Energy, Inc. (NYSE: NRG) May 21, 2021, $40 call (NRG210521C00040000)
  • Ford Motor Co. (NYSE: F) April 30, 2021, $12 call (F210430C00012000)
  • Rocket Companies (NYSE: RKT) April 30, 2021, $24 call (RKT210430C00024000)
  • Apple Inc. (NASDAQ: AAPL) April 23, 2021, $139 call (AAPL210423C00139000)

After-Action Report

This is our debriefing of every trade closed or expired to analyze what happened, why it happened and how it can be done better — like what the military uses after missions.

Cameco Corp (NYSE: CCJ) April 16, 2021, $22 call (CCJ210319C00022000)

Date: March 17, 2021

Reason: Our monitor triggered a buy alert when a Hot Money bought $18.6 million in new call options, betting shares would soar higher before April expiration.

Outcome: expired worthless.

Notes: We followed the system, but I didn’t execute as I planned. Prices dropped back and because I had time, I thought we would see a spike higher. We did, but it never followed through. I have to get better and execute.  

International Game Tech (NYSE: IGT) April 16, 2021, $21 call (IGT210416C00021000)

Date: March 17, 2021

Reason: Our Hot Money monitor triggered this new buy alert after $12 million in call options purchased, betting shares will soar higher before April expiration. 

Outcome: expired worthless.

Notes: We followed the system, but I didn’t execute as I planned. Prices dropped back and because I had time, I thought we would see a spike higher. We did, but it never followed through. I have to get better and execute. 

Lumen Technologies, Inc. (NYSE: LUMN) April 16, 2021, $15 call (LUMN210416C00015000)

Date: March 22, 2021

Reason: Our Hot Money monitor triggered this new buy alert after $7.2 million in call options purchased, betting shares will soar higher before April expiration. 

Outcome: expired worthless.

Notes: We followed the system, but I didn’t execute as I planned. Prices dropped back and because I had time, I thought we would see a spike higher. We did, but it never followed through. I have to get better and execute. 

It’s a tough expiration cycle, but I’ve been doing this for a long time. 

Now it’s time to head to the pool with a fresh jalapeno margarita - TGIF! 

I'll have a new trade on Monday and have a great weekend.

To your wealth, freedom, and options!

Joshua M. Belanger

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%