Live: Friday, January 24, 2020

3:15 p.m. New York time

Additional stop/losses have been triggered. APAM in Momentum and EIX in Utilities had tight stops because they no longer qualified for their portfolios. SYNA had the standard twice the Average True Range for a stop, and HYG — my vehicle for junk-bond income — had a long-standing fixed stop that was triggered after a four-day decline in price.

The details:

  • Momentum Portfolio
    • Exits
      • APAM, a $33.59 credit, down 96 cents from entry, producing a 2.8% loss over nine days for a -113% annual rate.
      • SYNA, a $71.04 credit, up $1.49 from entry, for a 2.1% return over 17 days for a +46% annual rate.
  • Utilities Portfolio
    • Exit
      • EIX, for a $77.20 credit, up 23 cents from entry, or a 0.3% return over eight days for a 14% annual rate.
  • Bond Income
    • Exit
      • HYG, for an $87.72 credit, up 79 cents, excluding dividends. With dividends included, the position produced a 3.3% return over 185 days, or a 7% annual rate.

2:15 p.m. New York time

Of my eight short iron condor positions expiring February 21, all are well below my management point, which is 50% of maximum potential profit. Two are unprofitable and trading above the breakeven point (TLT and XLK). One other is also unprofitable but trading within the profit zone (XLE). Five are profitable at the present (EEM, XBI, XLI, XLV and XLY).

The positions reach 21 days before expiration on Friday of next week, and at that point I’ll exit all positions that are profitable, even if minimally so, a manage-early practice shown by TastyTrade research to improve results.

In stocks, I moved the stop/losses of the positions to double the Average True Range, or closer in a few cases. And sure enough, three positions — EDIT in the Genetics Portfolio, TER in Robotics and VIPS on the Bench — all triggered their stop/losses. Only TER had the standard double ATR stop. EDIT and VIPS each had a single ATR stop.

Two positions no longer qualified for their portfolios. I tightened the trailing stops for APAM in the Momentum Portfolio and EIX in Utilities, since both were trending upward. When EIX exits, it will be the last position in Utilities, which I shall then discontinue.

I sold three other positions. And I entered three, all in the Values Portfolio, which is the focus portfolio for the day.

Stock Trades

  • Value Portfolio
    • Entries
      • RUSH, for a $43.66 debit.
      • SNX, a $144.49 debit.
      • WCC, a $54.03 debit.
  • Momentum Portfolio
    • Exit
      • MS, for a $54.4 credit, down $1.71 from the entry level, producing a 3.0% loss over two days for a -556% annual rate.
  • Genetics Portfolio
    • Exits
      • CDXS for a $17.12 credit, down 18 cents from entry, resulting in a 1.0% loss over one day for a 372% annual rate.
      • EDIT, a $31.79 credit, down $3.78 from entry for an 11.9% loss and a -434% annual rate.
      • REGN, a $345.07 credit, down $14.49 from entry, a 4.0% loss for a 1,471% annual rate.
  • Bench Portfolio
    • Exit
      • VIPS for a $13.64 credit, down $1.61 from entry, producing a -10.6% loss, or a -351% annual rate.

By Tim Bovee, Portland, Oregon, January 24, 2020

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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Based on a work at www.timbovee.com.