I sleep pretty well and rarely worry about the performance of our portfolio. But I have had about 2-3 nights over the last month where I woke up early worrying about my AAPL position. This morning was one of those mornings. I don’t know why but maybe it was because the price action yesterday was so disappointing. The stock made it to about 455 or so but ended closing down around 442. When it hit the 440’s I sold a couple of bull credit put spreads that expires next week, the 440/425. Mind you I am long an April 440/425 bear put spread as a hedge, but it was still disconcerting to see the stock trade so poorly. I woke up this morning convinced that this was the start of the march down to 420 before going on down to the 300s.
The stock opened around 445 and then went back down to 442, but since then has started a 45 degree climb, slow but steady and as I write this it is trading about 459, up 16.8 or about 3.8%. I am long both the stock and spreads but have been reluctant to sell upside calls thinking that there would come a day that valuation would matter. Maybe today is that day.
AMZN – bought a March 250 call to protect the Feb 265 and Mar 280 calls that I am short. Still own an Apr 275/255 put spread to hedge this long. I still don’t trust this stock and think when the market pull back occurs. It takes AMZN down farther than most.
GOOG – bought a calendar spread, BTO Mar16 750 call and STO a Feb22 780 call
IBM – added a calendar spread BTO April 180 call and STO Feb16 205 call
TBT – added to long positions both underlying and; BTO Mar 68 call STO Mar 72 calls