August Trading Journal review

The month of August was a slower trading month for me as I was vacationing a good portion of the month. Despite the lower number of new trades, I still saw a repeating pattern in my overall trading performance: Option protection was instrumental in protecting a long position, and in a few cases options were immensely profitable (holding Long Puts as part of a Collar).

Summary:

  • I have continued to adjust my efforts to post-earnings trading with a combination of stock and option trades. Although this means I am missing the initial price move (which is tough anyway, have to be right on direction), catching the recovery or fade has been worth the wait in many cases.
  • My Long Term account short positions continue to do well with $ANGI $FB $GRPN leading the way.
  • The “to fade” plays required a lot of patience and a great deal of effort in stock selection. Have been wrong on most that are on the list but still worthwhile keeping an active list at all times in my opinion.
  • Have had to work hard in managing the Long 1/4 position that I put on in $PCLN after the earnings reaction. I have executed (4) option trades (using Weekly options) to help boost the overall trade performance. Was very early in my “toe dip” there and certainly glad that the scaling portion of my strategy kept me out of severe trouble there.
  • I continue to do the weekend $VXX short trades (short of Friday, cover on Mon or next trading day). This trade is done with stock or options.
  • I have 3 pairs trades on. The $TNA / $TZA & $FAS / $FAZ short pairs trades are held thru the year (I am short each ETF, a decay play). The other pairs trade is a L $KORS S $COH trade that I am close to exiting. Real close.
  • I have a LOT of work to do with the Fab 5 as I have 3 open slots. Only $COST & $DVA remain.

 

 

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