2020: Week 12

Weekly Chart

It was time to pay the piper this past week, and pay I did. The options I sold long before the pandemic hit expired. Options sold in the first week of the pandemic expired. In the former case, I can take the losses with my chin up. I followed my strategy and I got hit by the unexpected. In the latter case I’ll be taking those losses right on the chin. I jumped into a volatile situation I did not fully grasp and it cost me. My premature decision along with my older position set me back $143.

I did capture another $5 of profit from taking a short position on SPY early in the week. But after that I decided to call it quits on trying to be active in this market environment. I am simply far too undercapitalized to continue to be able to get in and out of the positions I’d like to trade. And the Bid/Ask spread on option contracts right now is too rich for my blood.

New Positions

To that end, I’ve decided to go all in, all long, on Ford for the time being. I know it may not seem like the smartest thing to do right now. Maybe it isn’t. However, I feel that long term Ford will be back closer to it’s usual 8-9 dollar range. If I am right, Ford is incredibly cheap right now. I purchased 5 more shares at $4.97. I also opened another long call option for $10. This one expires 1/15/2021 with a strike price of $10. It has already started to earn money. I hoping to get about $70-90 profit out of this one. 

Ford did suspend their dividends for the time being so I might be selling my shares if they get above my breakeven point of $6.73 before the dividend gets reinstated.

I also bought 3000 more “shares” of Dogecoin. It has dropped down to 0.0015, so I scooped up another $5 worth. This lowered my average to 0.0017. I’m still not sure if I’ll hang on to this long term or liquidate it when the price returns to 0.0030’s.

Position Brief

The tickers in this brief aren’t liable to change anytime soon. Hopefully the values will be increasing though.

TickerPositionUnrealized P/L
FLong Call (Exp: 1/15 $10 Strike) +$4.00 (+40.00%)
FLong Call (Exp: 9/18 $9 Strike) -$7.00 (-35.00%)
F10 Shares -$23.84 (-35.40%)
DOGE5235 Shares +$0.5001 (+5.58%)

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