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 – AMZN adjustment and TSLA increase

It may be early to say but it seems to me like the selloffs are being bought, rather than earlier this year where the rips were being sold. Look at the last 2 weeks of the nasdaq:

Especially this week but also last, there seems to be significant support of the recent selloffs.

In addition, AMZN has touched $2500 (from the bottom), which means my 3x 2560-2500 BPS has lost a bunch of its value, while my one short 2500 put has gained a lot in value. But because its 3 spreads covering only 1 naked put, I would rather adjust, as follows:

AMZN filled orders

I closed the 3x spreads for 25.5 ($7650 credit), and rolled the naked 2560$ put to a 2560-2500 put ratio spread for a $2137 debit. So took $5500 off the table, sold another month of premium, lowered my break even value to AMZN at 2500$ instead of $2560, and the potential to make another $12k over the next month and a half if the whole position expires worthless. And all while still using the same amount of margin as the previous position.

In addition, because my TSLA puts were showing $12k of paper losses on 4 contracts (so 3k per contract), I figured I should sell 1 more put for $8200 to lower my average entry price, as I still think the 450$ puts are a good target to expire worthless in 2 years:

Overall my portfolio is up to 21k$ YTD (losses), not sure why thats only showing -2.63% on the platform, but either way, something like 4% of a 500k portfolio and significantly outperforming the nasdaq (and also the other indices):

So yes, honestly my fear right now is that I didn’t take enough advantage of the >25% drop in the nasdaq that happened over the last 6 months, but I also do want to keep enough money on the side in case the support doesn’t hold up and we get another 10%-20% drop in the coming weeks/months.

The other thing about these trades, even though they are adjustments/increases, they are also great (!!!) as new trades, for someone who doesn’t have similar positions already.

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