This might sound strange…
…But the move lower has been orderly.
What I mean is that we haven’t seen a panic.
We’re in a bear market because the Fed is closing the spigot on endless money printing.
Despite the wide-ranging markets, we were able to add another winner to the board!
As I often say, up, down, or sideways — there’s always an opportunity.
Let’s talk about the CBOE Volatility Index (VIX), aka the “fear” index, which closed at 27.
That’s the same reading we had last week and means that we’re seeing 2x volatility as normal.
Now let’s talk shop.
Today, this position expires.
- FCX Feb. 18, 2022, $48/$55 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.
Buy-to-open the MLCO Apr. 14, 2022, $15 call
Sell-to-close FOSL Mar. 18, 2022, $14 call
Buy-to-open the PFE Mar. 14, 2022, $49/44 put spread
Right now, we’re holding:
- PFE Mar. 14, 2022, $49/44 put spread
- MLCO Apr. 14, 2022, $15 call
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.
FOSL Mar. 18, 2022, $14 call
Outcome: Closed for 110% gain.
Notes: Great trade and executed this perfectly.
FCX Feb. 18, 2022, $48/$55 call spread
Outcome: Expired worthless.
Notes: We took our shot and this one didn’t work out.
Have a great weekend and enjoy a fresh spicy margarita - TGIF!
To your wealth, freedom, and options!
Joshua M. Belanger