Chop, Chop & Chop
Well, that was a waste of a day. I hope you didn't get chopped too bad.
There were no major market events today, but there were some pivotal earnings reports. Bank of America, J&J and Lockheed Martin all "beat". Their price action today doesn't suggest overwhelming success, but the reports could definitely be considered a win. Goldman Sachs had a considerable gap down because of a loss in their bond trading department, but it made a solid recovery by the end of the day.
Moving forward, Netflix is reporting this evening and Tesla is reporting tomorrow. The party doesn't end there though. Posted below are the major earnings for the remainder of the week. Buckle up & Godspeed!
Market Events: Wednesday, April 19th
02:00 PM Fed Beige Book
07:00 PM New York Fed President Williams Speaks
Earnings: April 17th - 21st
Monday: Charles Schwab & State Street
Tuesday: Bank of America, Bank of NY Mellon, Goldman Sachs, Interactive Brokers, J&J, Lockheed Martin, Netflix, Silvergate Cap & United Airlines
Wednesday: Heineken, IBM, Las Vegas Sands, L’Oreal, Morgan Stanley, Nasdaq & Tesla
Thursday: Alaska Air, American Airlines, American Express, AT&T, Blackstone, Philip Morris, Taiwan Semiconductor, Union Pacific & Virtu Financial
Friday: P&G & Schlumberger
Note: This is NOT the full list -- I included the names of companies that are popular within the Goonie Community.
Seasonality Update
S&P 500 Seasonal Bias (April 19th)
- Bull Win Percentage: 76%
- Profit Factor: 4.78
- Bias: Bullish
Equity Curve -->
Current Account Value (April 17th)
Daily Realized P&L: +$0
YTD Realized P&L: +$505
Closed Position(s)
None
Current Position(s)
SPY Iron Condor (3) April 28th
- $419/$421 Call Spread --> Credit: $38
- $399/$397 Put Spread --> Credit: $34
- Max Return: $72 & Max Risk: $128
- Current Value: $68
- Profit Target: $30
- Profit Odds: 69%
SPY Iron Condor (3) May 5th
- $418/$419 Call Spread --> Credit: $37
- $403/$402 Put Spread --> Credit: $20
- Max Return: $57 & Max Risk: $43
- Current Value: $61
- Profit Target: $20
- Profit Odds: 59%
SPY Iron Condor (3) May 5th
- $422/$423 Call Spread --> Credit: $23
- $400/$399 Put Spread --> Credit: $18
- Max Return: $41 & Max Risk: $59
- Current Value: $43
- Profit Target: $15
- Profit Odds: 71%
SPY Iron Condor (3) May 5th
- $424/$426 Call Spread --> Credit: $46
- $397/$395 Put Spread --> Credit: $37
- Max Return: $83 & Max Risk: $117
- Current Value: $64
- Profit Target: $30
- Profit Odds: 77%
New Position(s)
None
My Thoughts
The price action recently has straight up sucked. There has been lots of chop and, even worse, fake outs. This happens commonly in the markets. Periods of nice trend followed by bullshit whipsaw. Even though this is beyond frustrating, it's part of the game. The earlier you learn how to recognize what environments need to be avoided, the better your account will look.
As of now, I'm sitting on my hands waiting for the next big thing. Until then, I'll catch you at Texas Roadhouse.
Thanks for reading -- Much Love!
Notes
Max Return (Credit Spreads): The credit received when creating the position. This is achieved when you get to the expiration date and the price is below the sold contract for a Call Credit Spread and above the sold contract for a Put Credit Spread.
Max Risk (Credit Spreads): The difference between the spread's two strikes minus the credit received when the position was created.
Breakeven (Credit Spreads): The sold strike plus the credit for CCS and the strike minus the credit for PCS.
RISK WARNING: Trading involves HIGH RISK and YOU CAN LOSE a lot of money. Do not risk any money you cannot afford to lose. Trading is not suitable for all investors. We are not registered investment advisors. We do not provide trading or investment advice. We provide research and education through the issuance of statistical information containing no expression of opinion as to the investment merits of a particular security. Information contained herein should not be considered a solicitation to buy or sell any security or engage in a particular investment strategy. Past performance is not necessarily indicative of future results. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites.
Both of these trades hit if held until close -- 6 total units!
Both of these trades hit if held until close -- 6 total units!
SPY missed & QQQ hit
The Trump-China-Trade announcement from the NYT knocked me out of my position. The CCS's were sold at $1.80/ea and I was forced to buy them backl at $4.40 -- This means my realized loss was $3,120 :(
The hedge did exactly what hedge plays are meant to do. It balanced me out! These PCS's were sold at $0.85/ea and expired worthless -- THIS MEANS MY REALIZED GAIN WAS $2,975!
