Well, it’s an ugly open here this morning to the new week, following up last week’s ugly action and the ugly close on Friday. U-G-L-Y is the theme out there.
To review, I remain a bit bearish on the broader markets and remain high on cash and mostly patient in scaling into any more long exposure. On Friday near the close, I nibbled on a first tiny tranche of AMZN and NFLX call options. Both stocks are set to open lower by 3-4% this morning and I’m going to go ahead and nibble another tranche of call options in both names. This morning early, I’ll be buying some Amazon call options, dated out to May with $540 or $545 or so strikes on them. And I’m buying some Netflix call options dated out to June with some $95 or maybe some $100 strike prices.
I’m not committing much capital to this trade, just scaling in a little bit more here. I’m also going to cover about 1/3 of my GWPH GW Pharmaceuticals short position this morning, locking in about a 50% gain on those shares and keeping about 2/3 of my short position open.
Keep cool and don’t let emotions drive your trading/investing decisions.