2021-05-02 Sunday

WEEKLY MARKET OVERVIEW

Not much changed in the market during last week with the S&P500 (SPY) consolidating near all-time highs in a pretty tight range. Aside from Thursday, all sessions posted very short candles with small bodies. After the upward run of the previous weeks, this behavior looks like normal digestion of recent gains. 

SPY

Weekly performance (Week 17/2021)
– SPY (S&P500) +0.13%
 QQQ (Nasdaq100) -0.42%
 DIA (Dow Jones Industrial) -0.44%
 IWM (Small Caps) -0.39%

Also the volatility index (VIX) has been moving sideways but so far still below the 20 level.

VIX

WEEKLY TRADING JOURNAL

As we are in the middle of earnings season, my focus is still on ETFs while waiting for new interesting opportunities to come along.

On Friday I rolled out in time for an additional week the ARKK 04/30 CSP $125 as it was trading below the strike price. At the moment of the adjustment, this trade has been active for well 66 days and so far has generated fabulous returns.

Symbol: ARKK
Position: CSP (Cash-Secured-Put)
Action:  Rolling Out in Time
Previous expiration date: 30 April 2021
New expiration date: 7 May 2021
Strike price: $125
Net credit per contract on the roll: $140 (excluding commissions)
Delta: 0.32
Implied Volatility: 40.8%

Still on Friday, I was able to let the ARKK 04/30 CSP $119 expire worthless. That was a very easy maintenance play that never traded below the strike price over its entire duration and led to an excellent profit.

Symbol: ARKK
Position: CSP (Cash-Secured-Put)
Action:  Expired Worthless
Expiration date: 30 April 2021
Trade duration: 7 days
Strike price: $119
Cost per contract to close the trade: $0 (excluding commissions)
Premium per contract retained: $144 (excluding commissions) = 100% of the original premium
Trade ROI: 1.21% (excluding commissions)
Trade AROI: 63.10% (excluding commissions)

ARKK

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Take care and trade wisely

Gianmarco