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.

Subscribe to receive these posts in real time directly to your inbox:

One response to “Trade alert – close AMZN call butterfly”

Leave a Reply to June 5 weekly summary – the week we went nowhere – Hab Technology Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s



%d bloggers like this: