I wish I didn't have the cold feet

Some friends are asking what’s the status of the market and how we should trade. Here is some quick recap what I’m doing lately.

First about the most heated stock in the past week, Amazon! I made some bold trades on it and I wish I didn’t get the cold feet with AMZN. I sold puts when it initially tanked about a month ago with a strike $1760 due Jul 20. But it kept tanking to below $1700 and I doubled down to sell more for the $1700 Jul 20 puts. Both lots have a potential profit worth about $10K each. Last week, it jumped back as expected to around $1750. That’s where I got the cold feet given its volatility and so close to the maturity. So I closed the 1st lot for about even. A big mistake of course. AMZN is now keeping moonshot to $1830 now with just 5 days left for the Jul options. But fortunately I still keep my 2^nd lot and it will be really a shock to see it tanks again to below 1700 by this Friday. As I said in the previous blog, I did quite a few put selling during major selloff a few weeks ago for big names like APPL, MSFT, DIS, LMT, WBA, PFE, MCD etc as I’m never worried about the media nonsense taking about the trade war! All my late tradings are doing great except MCD which is still a bit struggling!

Of course, the market is a bit overbought at the moment and is due for a breath. I don’t expect a huge selloff but it could be felt scary. While I still believe there is a good chance to see new highs of the market (S&P) in the next couple of months, the poor performance of the financial sector is concerning. Usually we should see some strength of Finance to support a more sustainable strong market. We have to be flexible with an open mind about the market trend by playing by ears as of now. So far, I’m still trading on the thesis that the general trend is upwards in the next few months but I won’t hesitate to change my mind if I start to see some technical weakness that will negate this uptrend. I hope I can tell you in advance.