Dear Trader,
It was a quiet week as stocks tip toed higher.
Last week, we didn’t have our weekly update because of Good Friday, but we had a great week!
We had closed out our fourth straight win!
As you can see, these daily swings can work for us and also trap us.
That’s because of volatility, but we have to be aware of these market situations and focus on sticking to the system.
Now, The CBOE Volatility Index (VIX), aka the “fear” index, is still above our key 15 levels, trading at 16.64.
These are levels not seen before the market drive last year.
It’s easy to get comfortable, but we have a lot of road bumps coming ahead with how much money we’ve printed this last year.
Now let’s talk shop.
Here’s a recap of what we did this week.
On Monday:
Buy-To-Open the Ford Motor Co. (NYSE: F) April 30, 2021, $12 call (F210430C00012000).
On Wednesday:
Buy-To-Open the NRG Energy, Inc. (NYSE: NRG) May 21, 2021, $40 call (NRG210521C00040000).
Right now, we’re holding:
A few of these positions are more red than anticipated and now baby sitting losers, which is what we want to avoid.
Right now, I’ll be looking to unload these into a move higher, which will likely still be losing trades.
We do have time, but we’ve also lost time and volatility.
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.
ZTO Express ADR (NYSE: ZTO) May 21, 2021, $30 call (ZTO210521C00030000)
Date: March 31, 2021
Reason: Our monitor triggered a buy alert when a Hot Money bought $120,000 of the April 16, 2021, $60 call. This was an 300% increase in volume at that strike, which the trader was looking to make a quick return.
Outcome: 30% gain.
Notes: We executed this perfectly. We followed the system and sold when it hit our target.
Wells Fargo & Company (NYSE: WFC) April 9, 2021, $39 call (WFC210409C00039000)
Date: March 31, 2021
Reason: Our Hot Money monitor triggered this new buy alert after $690,000 in options was just purchased, betting shares will soar higher in the coming days.
Outcome: 41% gain.
Notes: We executed this perfectly. We followed the system and sold when it hit our target.
Once that closing bell rings, I’ll be heading to the pool with a margarita - TGIF!
I'll have a new trade on Monday and have a great weekend.
To your wealth, freedom, and options!
Joshua M. Belanger