The day started a little bullish after the initial selloff, but it didn't take too long to flip back to bear mode. When SPY failed to hold above our 440 watchlist level, it was time to go short. And be patient. The SPY 440 puts went from $3.75 to a cool $11 at our 430 watchlist level. SPY held the 430 level and gave the bulls one last hurrah for the day.
Quick Repositioning Saves Our Bacon on TSLA
Tesla (TSLA) had a pretty interesting earnings report last night. Initially we were thinking quick dips into 920-910 and a move higher, but that thesis turned out to be wrong. So we flipped short with the 900 put for $22 ... and they went to a high of $62. Any losses from being wrong, we recovered and then some.
Gap-Up Reversal on STX
The team got short on Seagate (STX) after its earnings report. It gave us a nice gap-up reversal. Once it lost the 115 level, it never looked back. It finished the day just shy of 103, a nice twelve-point move. The power of planning ...
... And NOW
ServiceNow (NOW) mirrored STX, offering us a short, close to the 560 watchlist level. The 550 puts went for about $11-$12 to a high of $30 at the lows. This is why we keep an eye on earnings reports!
Sitting Tight for AAPL ER
Apple (AAPL) had its earnings report after the bell. That will be nice to watch tomorrow. We didn't hold any positions into ER — no need to absorb that kind of unknown risk.
Member Trade of the Day
Edumomo member Partner killed it on those TSLA puts, ending the day 16.04% up. Nice work!