Unbelievably, the market has calmed down considerably, with the VIX closing the week at 14.17!
Is this rally real? I don't know - but I'm taking the opportunity to lock in some profits and manage positions while I can.
$50 profit in Apple (AAPL)
Managing a $617 position in Texas Instruments (TXN)
$50 profit in AAPL
On Friday Nov 3, AAPL took a dip after announcing their results the previous day. I took the opportunity to sell a $160 put expiring on Dec 15 for $90.
Just 2 trading days later, this past Tuesday, Nov 7, the trade hit my profit target and I bought the put back for $40, which resulted in a realised profit of $50 (or 56% of max profit).
Like I always say, not all trades are as fast and painless and profitable as this (as you'll read about in TXN below), so when they come, I'll take the win.
Like DKS which I talked about last week, AAPL is another of the stocks on my watchlist that can be a bit prone to bouts of volatility, so I am a bit more patient with trades instead of jumping into them.
That said, AAPL has been an amazingly consistent performer in the portfolio with 10 wins from 10 trades and an overall realised profit of $904 since the beginning of the year.
This trade was shared and managed in real time with my private community via the Bread Crumb subscription - all my entry and exit points are shared publicly.
The $50 realised profit from this single trade would have covered the subscription fees for the month - not bad with more than half of November remaining!
Managing a $617 position in TXN
Way back in August, I sold a put in TXN at the $155 strike for $165.
As chronicled in this earlier newsletter update, the position was previously rolled a couple of times, and is now existing in the form of a $155 | $160/165 jade lizard for a total premium of $617.
I won't go into too much detail about how jade lizards work, but there's no upside risk, meaning that if TXN jumps past $165, I can still make $117 on the trade.
Currently I'm looking to pay $300 to close the entire position, which means walking away with $317 in profit - which wouldn't be too bad for a position that has been causing a bit of trouble.
Closing thoughts & useful links
The news of the S&P 500 closing in correction territory a few weeks ago seems to have been forgotten, with stocks climbing for the last couple of weeks.
Moves like the jade lizard in TXN are meant to take advantage of these kinds of up moves, and position the portfolio to make money both if the rally stops, and if it continues to go higher.
Historically November and December have been strong months for the market, me personally I wouldn't mind some weakness to initiate new positions, but we'll see how that plays out.
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.