Being Patient in A Choppy Market & Expiring Options Position Today

July 9, 2021

Dear Trader

During the summer months, markets can be choppy and that’s exactly what this shortened week felt like.

Yesterday’s shook the weak hands out of the market as stocks rebounded and the S&P 500 today.

Our hot streak has cooled off and unfortunately we have an options position that expired today which I’ll cover in a minute.

Being patient is one of the most challenging aspects of life...

...Especially when it comes to the markets and avoiding forcing any trades.

Now, the CBOE Volatility Index (VIX), aka the “fear” index, is right at our key 16 level.

That means the path of resistance is higher and let’s see how the market reacts next week. 

Now let’s talk shop.

Portfolio Update

Today, this position will expire.

  • INTC July 9, 2021, $60/$62 call spread

Unfortunately, we don’t have more time for this 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.

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

On Monday:

Market closed.

On Tuesday:

Buy-to-open the KO July 30, 2021, $54.50/$56.50 call spread

On Wednesday:

No action

On Thursday:

No action

On Friday:

INTC July 9, 2021, $60/$62 call spread expired worthless.

Right now, we’re holding:

  • VIPS July 16, 2021, $24/$28 call spread
  • LUMN July 16, 2021, $16 call
  • F July 16, 2021, $15.50/$16.50 call spread
  • AMD July 16, 2021, $96/$100 call spread
  • EDU Aug, 2021, $10/$12.50 call spread
  • KO July 30, 2021, $54.50/$56.50 call spread

Joshua’s Journal

This is my journal which is a debrief 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.

INTC July 9, 2021, $60/$62 call spread

Outcome: Expired worthless.

Notes: We took our shot and this didn’t work out. I could’ve salvaged what was left when prices popped up on 6/28. Unfortunately, I thought we could see more follow through.

That’s all for today. 

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

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%