Results Week Ending 7/16/21

The strange market continues. Some may say I’m nuts because the DOW hit 35,000 before dropping 299 on Friday. The S&P hit an all time high on Wednesday, and the NASDAQ hit an all time high on Tuesday before big tech started to sell off for the rest of the week.

After doing a little investigative work into the Dow 30 very few are at their all time high, maybe 4.

If you watch CNBC’s “Power Lunch” show you can see the positions the guru investors are in; they are not doing so well. It’s not only my positions, or yours. If you are not only in AAPL, MSFT, AXP, HON, a few of the DOW stocks near their all time highs, the odds are your stocks are down. And AAPL has been struggling for a number of months. It just started moving in June. If you disagree with my assessment please send me an email.

I’ve never seen a market with the 3 major indexes at highs and every stock I hold is down. I really hope I’m alone in this situation but I don’t think so. This week I was able to lock in $360 with Grasshopper Trades and $3825 with all my trades, Grasshopper and Master, however, my account is down 100K in the last 10 days. It seems to me that the DOW and the NASDAQ have split personalities. Many days one is up and the other is down. I’m hoping for a few weeks where the DOW, NASDAQ and the S&P are all up and all stocks are up. This administration seems to have trouble helping this happen. I understand this is still a new administration, and new policies will cause uncertainty in the markets; but I don’t like the new policies! And I don’t think they’ll work well, but I’m willing to give them a shot. I just wish more people would have given the last administration a fair shot!

 

Contextlogic

With WISH down I made a 10 day trade. It expired without assignment but I received a 5.1% return.

7/6/21 – Sell to Open 2 WISH 7/16/21 $14.00 C @ 70¢ (+$140)

7/16/21 – Expired 2 WISH 7/16/21 $14.00 C

 Profit +$140

NIO

Another 10 day trade without assignment.

7/6/21 – Sell to Open 2 NIO 7/16/21 $57.00 C @ 60¢ (+$120)

7/16/21 – Expired 2 NIO 7/16/21 $57.00 C

Profit +$120

Macys

I bought 200 shares of M at $19.20. Here I did an In-the-Money Covered Call with the Strike of $19 to help get assigned. Didn’t happen! With the DOW at an all time high M dropped $2.25 this week. For a $19 stock that’s well over 10%.

7/12/21 – Sell to Open 2 M 7/16/21 $19.00 C @ 50¢ (+$100)

7/16/21 – Expired 2 M 7/16/21 $19.00 C

Profit +$100

Total Weekly Gain +$360

I’m very concerned about this market with the indexes at all time highs. I believe the policies this administration is enforcing can cause the DOW, the NASDAQ and the S&P to correct. If this happens the stocks that are much below their highs will go down further. For me this will be a problem!

Enjoy the weekend!

 

Successful trading,

Steve

The Options Coach