Dear Trader,

As I said earlier this week, Monday’s sell-off was normal...

...But talking heads made it seem like the sky was falling. 

And today we are right back to where we were last week. 

Like many, my account was down on Monday. 

I didn’t panic and despite it being a losing week, if I panicked it could’ve been a very ugly week. 

That’s why putting your hands in your pocket and being patient helps avoid costly mistakes.

We do have a DIDI position that expires today and after last week's expiration, that’s four in a row. 

That’s part of risk taking and because I know my numbers, I know we’re due for a winning streak. 

Now, the CBOE Volatility Index (VIX), aka the “fear” index, is at 17 above our key 15 level.

That means volatility did come in 3 points from last week's reading of 20 and the market is a little more certain going into next week. 

We’re still in a bullish regime... but with the debt ceiling on the horizon, things will get very interesting in the coming weeks - buckle up! 

Now let’s talk shop.

Portfolio Update

Today, this position will expire.

• DIDI September 24, 2021, $9.50/$11.50 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:

No action.

On Tuesday:

No action.

On Wednesday:

No action.

On Thursday:

Buy-to-open the TROX December 17, 2021, $25/$30 call spread

On Friday:

No action.

Right now, we’re holding:

• YELL October 15, 2021, $7.50/$10 call spread
• ACM December 17, 2021, $70/$75 call spread
• AAPL October 15, 2021, $150/$155 call spread
• TROX December 17, 2021, $25/$30 call spread
• OXY October 15, 2021, $27/$30 call spread

Trade 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.

DIDI September 24, 2021, $9.50/$11.50 call spread

Outcome:Expired worthless.

Notes: We took our shot and this didn’t work out. These Chinese stocks have been a tough trade, but that’s the art of speculation.

Now it’s time to get my 7 mile run in before I head to the pool with a fresh jalapeno margarita - TGIF! 

Have a great weekend and talk with you on Monday.

To your wealth, freedom, and options!

Joshua M. Belanger