Thoughts of a mechanical engineer turned programmer turned statistical investor. Here to save you from making mistakes I made at the beginning of my investing career.

Trade alert – close AMZN call butterfly

Putting out an alert that I took profits on my call butterfly position (details here): closed for 44 (opened for 24.5) so took 1950$ profits off the table.

The reason I did this is that theres only 1600$ more to gain from here with AMZN above $2340, but 17 days left on the position, so I would rather take a quick 100% gain off the table than wait it out for a potential 1600$ more. If AMZN stays here or goes higher, I stand to make plenty more on my other AMZN positions (although hopefully not above $2560 because then my bear put spread will start decaying):

With the current uncertainty in the market, if another 3% down day happens, I figure I could just get another entry into the same (or similar) position, and if it doesn’t, maybe we really did see the bottom 2 weeks ago (when I said), in which case I have enough open positions to make some good money a bit of recovery.

I don’t see the nasdaq flying back up to 16,500 (and maybe not even 15,000), but 13,000 or 13,500 seems like it could be possible:

Even if the nasdaq only gets towards 13,000, if the VIX dies down my short put positions will decay significantly.

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