I have been pretty bored trading lately, but the boredom is ending. We had trades on DraftKings (DKNG), Moderna (MRNA), and Palantir (PLTR) queued up for opening bell and all got filled rather quickly. I am not a fan of opening bell trades but I’m also sick of having so few trades on. The DKNG trade started going against us pretty soundly so I sold a second contract at the original strike ($55) to average up our premium. It looks like it could catch support here at $58, if it doesn’t it should be heading for $54 which is just above our cost basis.
About a minute after opening I noticed our original Alibaba (BABA) trade took profits. That’s right, we live in a world where being fined $3 billion dollars can be good news. Mainly because the market had priced in a much worse fate for Alibaba. Even the staggered trade we put on Friday came off the board, so we are BABA-less at the moment.
We also took profits on two Ford (F) contracts that have just been kicking around.
I ended the day by opening a position on WD40 (WDFC), which has been getting hammered the last couple days after earnings. We were able to get 1% premium out of the $240 strike, so I’m interested to see how this one goes as we’ve never traded that ticker before. There seems to be slippage but I like boring companies in sectors I don’t trade as much.
Speaking of which the diversification breakdown is radically better than Friday, and I envision it improving throughout this week:
The overall allocation is still very minimal at 17.53% allocated, which is why you see me stretching a bit on some of these trades by messing with less reliable tickers and pulling in more modest premium per trade. I believe earnings will knock quite a few stocks off their game and will introduce better entry points for many, if not most, tickers.
Communitea Trade Update: Sumo Logic (SUMO) is close to being off the board. If it stays stable in price my buy-back order at $11 may even kick in tomorrow. Fisker (FSR) continues to slip a bit on us. If it visits $14 proper I will possibly add a second contract at the $12.50 strike. Patience is the name of the game with these two positions at the time.