Today is June monthly options expiration...
...And we have two positions that expire today.
Even with today’s losses, we continue to have an incredible hot streak.
Over the last few months, we’ve had 17 wins, 5 losses and 2 scratch trades for an overall gain over 400%.
As I mentioned last week, make sure you take a moment and celebrate these victories.
Life moves quickly and we often don’t take enough time to pat ourselves on the back for taking action.
Now, the CBOE Volatility Index (VIX), aka the “fear” index, is right above our key 15 levels, trading at 20.
Today’s reading is 4 points higher than last week and due to today’s sell off in the S&P 500.
The weakness in the S&P 500 the last few days has been due to the dollar rising - causing financials and energy to fall off a cliff after the FOMC meeting this week.
We’re seeing money rotate out of those names back into the Nasdaq.
Fear is elevated going into the weekend, but we’re still in a bull market.
Now let’s talk shop.
Despite closing two winning trades last week, we have two positions expiring today.
Today, this position will expire.
- Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
- RLX Technology Inc. (RLX) June 18, 2021, $15/$17.50 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.
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 AAPL June 25, 2021, $130 call
Buy-to-open the INTC July 9, 2021, $60/$62 call spread
Sell-to-close the CVE July 16, 2021, $10/$11 call spread
Buy-to-open the RUN July 16, 2021, $50/$55 call spread
Sell-to-close the AAPL June 25, 2021, $130 call
Sell-to-close the RUN July 16, 2021, $50/$55 call spread
Right now, we’re holding:
- VIPS July 16, 2021, $24/$28 call spread
- LI June 25, 2021, $25 put
- LUMN July 16, 2021, $16 call
- INTC July 9, 2021, $60/$62 call spread
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.
CVE July 16, 2021, $10/$11 call spread
Outcome: Closed for a 100% gain.
Notes: We executed this perfectly and sold the top.
RUN July 16, 2021, $50/$55 call spread
Outcome: Closed for a 48% gain.
Notes: We executed this perfectly for this position. This does have time and time will tell, but we hit the target and the system says to take the profit.
AAPL June 25, 2021, $130 call
Outcome: Closed for a 30% gain.
Notes: We executed this perfectly. The stock was shaky after shooting higher and made things tough at when to exactly sell. Since this contract didn’t have much time, it’s best to take what the market gives us.
Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
Outcome: Expired worthless.
Notes: We took our shot and this didn’t work out. We had some hope a few weeks ago when prices of those options got back to 30 cents, which was a gift from the market gods.
RLX Technology Inc. (RLX) June 18, 2021, $15/$17.50 call spread
Outcome: Expired worthless.
Notes: We took our shot and this didn’t work out. I did lose track of when the company was slated to release earnings and broke our system rules.
That’s all for today.
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