Hello Investors,
A few changes following the end of August expiration this past weekend. Markets have broken out above resistance as expected. That is creating the short covering rally and push higher in prices. That also sets up for a full correction coming in the not too distant future (in our view) in the markets. So, we have a very high risk/high probability “naked call” trade in QQQ. This is the deep end of the pool and should be paper traded by any new traders that are not familiar with delta hedging and other risk mgt techniques.
Here is a list of the trades processed today:
Sell to open: QQQ Sep 18th (monthly) 305.00 strike calls for +0.70 credit
Sell to open: BRKB Sep 18th (monthly) 225.00 strike calls for +0.65 credit
Sell to open: EEM Oct 16th (monthly) 48.00 strike calls for +0.31 credit
Sell to open: DIS Sep 18th (monthly) 140.00 strike calls for +0.61 credit
We bought 5 more shares of PINS at 33.49
We bought 5 more shares of GILD at 65.99
We took profits (buy to cover) on 1/2 of our short stock position in GOLD at 28.53 and adjusted our stop loss to 50 remaining shares still at breakeven stop loss.
We took profits on the 25 shares we bought in BRKB last week as a hedge. We bought them at 210.16 and sold them at 213.59 today.
Have a great week!