2021-05-09 Sunday

WEEKLY MARKET OVERVIEW

After a few weeks of trading near the $420 level, the S&P500 (SPY) finally broke out to all-time highs on Friday. Despite missed expectations on the monthly employment report, investors’ confidence remains high, and money printing keeps fueling this bull market. Once again, price action appears extended to the upside, but so far, the overall uptrend remains in place.

SPY

Weekly performance (Week 18/2021)
– SPY (S&P500) +1.16%
 QQQ (Nasdaq100) -1.12%
 DIA (Dow Jones Industrial) +2.64%
 IWM (Small Caps) +0.22%

After a slight rise over the week the volatility index (VIX) felt again on Friday and still below the 20 level.

VIX

WEEKLY TRADING JOURNAL

On Wednesday, I closed a quick play on TQQQ in just one day as the ETF price was up from the previous day’s lows, and time decay was falling exponentially due to proximity to expiration.

Symbol: TQQQ
Position: CSP (Cash-Secured-Put)
Action:  BTC (Bought-To-Close)
Expiration date: 7 May 2021
Trade duration: 1 days
Strike price: $90
Cost per contract to close the trade: $0.10 (excluding commissions)
Premium per contract retained: $65 (excluding commissions) = 87% of the original premium
Trade ROI: 0.72% (excluding commissions)
Trade AROI: 263.61% (excluding commissions)

TQQQ

On Friday night, I left to expire worthless the 05/07 CSP $85 on TNA for full profit. Despite the sharp deep on Thursday, the price never moved below the strike over the entire trade duration.

Symbol: TNA
Position: CSP (Cash-Secured-Put)
Action:  Expired Worthless
Expiration date: 7 May 2021
Trade duration: 7 days
Strike price: $85
Cost per contract to close the trade: $0 (excluding commissions)
Premium per contract retained: $78 (excluding commissions) = 100% of the original premium
Trade ROI: 0.92% (excluding commissions)
Trade AROI: 47.85% (excluding commissions)

TNA

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Take care and trade wisely

Gianmarco