This market is insane. For that reason, I’ve been playing short-term call options on those names getting bid the most recently.
Banks, airlines, cruise lines, oil, casinos, retailers, are all industries I’ve dipped into and out of recently. I’ve traded it on short-term call options about 3-7 weeks out.
My main focus is to take of 1/4 of a position at 10% profits, another 2/4 position at 20-30% profits, and then let the remainder of the position run. Taking profits is critical to setting up risk-free trades.
That’s the way it has to be played right now.
It’s very very very easy to adopt a bearish mindset right now.
The market is going insane.
But I’m thinking about it like the tech bubble.
My main focus is to keep my holdings short. I never held any of my lotto positions past 2 days unless it was the 1/4 winning position remaining.
It’s much much easier to let winners run when you booked 3/4 of your position at a profit. Those runners have ended up making up my big home runs in recent days.
My best trade was UAL last Friday, which I booked at 361% profit. F also netted me 192% profit.
I cut losers at around 20-40% drawdown on these positions without any regrets. It’s worked out well so far. But that can change very quickly.