2021-03-07 Sunday

WEEKLY MARKET OVERVIEW

Last week has been another wild one. After a gap up and a strong green day on Monday, we got three and a half scary days with deep selling pressure, with finally some relief only in the second part of Friday’s session.

Despite the rollercoaster of the last three weeks, the S&P500 (SPY) managed to close on Friday above the crucial $380 level and the rising trend line.

SPY

Mega tech stocks (QQQ) have been once again the weaker areas of the market, with price testing the December lows around the $300 level.

QQQ

Weekly performance (Week 9/2021)
– SPY (S&P500) +0.86%
 QQQ (Nasdaq100) -1.74%
 DIA (Dow Jones Industrial) +1.87%
 IWM (Small Caps) -0.27%

Volatility (VIX) still jumping all over the place but closing the week in the 25 range.

VIX

WEEKLY TRADING JOURNAL

My trading activity during the week has been minimal. After recent assignments, most of my shares are deeply underwater and might need quite some time to recover and be able to sell covered calls against them. The only two plays I was able to close during the week were two covered calls on NNOX and AAPL that helped to reduce my overall cost basis on these two stocks.

On Wednesday I bought back the NNOX 03/05 CC $65 for a $0.10 debit, keeping 92% of the premium for a 88% AROI in 7 days.

NNOX

On Friday I bought back the AAPL 03/12 CC $132 for a $0.10 debit, keeping 94% of the premium for a 37% AROI in 11 days.

AAPL

For last week’s expiration (03/05) I had three cash-secured-puts (CSP) that were caught on the recent market pullback. Considering all the assignments I received over the past few weeks I decided to roll these positions out in time to 03/19 at the same strike price, collecting a net premium on all of them.

ARKK 03/19 CSP $125 for $1.70 net credit
NET 03/19 CSP $70 for $0.96 net credit
QQQ 03/19 CSP $318 for $1.35 net credit

The cash portion of my wheel strategy portfolio is at about 36% most of which already tied as collateral for the CSPs expiring in two weeks’ time.

If you are interested to follow all my trades in real-time, you can join for FREE my Community on Discord, where I share my personal trading journal via instant private feed.

In case you have any questions, just drop me an email to info@thewheelstrategy.com

Take care and trade wisely

Gianmarco