We were in and out of Apple again. The portfolio has no position today, yearly profits in AAPL are now $12,594. We had sold some weekly 110 puts and yesterday we bought them for 5 cents each to close the position. Now, we wait for a day when Apple is down a few dollars. At that time. we will look for a high-probability strike and sell some puts. Until that happens, we stay out of this symbol. As a broker friend of mine once said “Patience produces profits”. He was right,
The WalMart position has taken a hit as WMT has moved lower over the past few days. Our charting system shows Walmart to be in a strong Bull market – so down days are welcome opportunities to sell some puts. We are short 10 puts and all of them will expire tomorrow. Some are in in the money, some are not. We will figure this one out tomorrow, but it appears that we will be adjusting this position. For now, we will collect another $70 overnight as time decay accelerates.
XLE has stopped it’s rapid slide and has stabilized around $80 for now. We have no idea if it’s going higher or lower over time, but this one can now be traded for time decay. Prices of the options are higher due to the increased volatility of world oil markets and this will continue for some time. We are trading this position in ways that will keep Delta near zero and Theta as high as possible. Right now, we are gaining $200 a day in time decay. Our loss Year to Date is about $4100 for XLE. Stay tuned. This will be a valuable lesson in managing and repairing broken positions. Tomorrow, we will be rolling some of our XLE strikes and I’ll detail those here.
Stay optioned, my friend.