Trade Findings and Adjustments 03-31-2022
Since it is the last day of the month what do we know?- Window Dressing and rebalancing
You see a sell side biased with a little purchasing and more purchasing within the next three days
1st day of the month is new money coming in
2nd to 3rd day of the month are cleared closed positions that happen the end of the month
We are in a news driven market –
Russia still attacking some cities but seems to be slowing down because they aren’t able to resupply
Russia will only sell natural gas and crude using the ruble= they still are allowing the use of their banks
- It funds their banks with currency exchange rate fees
- Strengthens the ruble and it helps them cash hoard other currencies
GDP slowed to 6.9 vs est 7.1
Consumer confidence 107.2 vs 107.5
Personal spending 0.2 vs est 0.5
Personal Income 0.5 vs est 0.5
FOR THE LAST THREE WEEKS OR SO ….
Hurley Investments on up days has been 3x the increase of the market
Hurley Investments on down days has been 1.5 to 2x as bad as the drop
Portfolios are based around technology, banks (financials) and consumer discretionary (retail) AND we use the long put option as insurance
Technology – AAPL, BIDU, FB, MU,
Banks – BAC, JPM, ZION, V, SQ
Consumer Discretionary = AAPL, DIS, UAA, F, VZ,
Others – BA, KO, LMT, CVS, DG, USB, PRPL, MU, NEM
We are NOT holding Energy, Healthcare or Bio Pharma
On BIDU’s pop the market was up 0.23 and you were up 7.1%
BIDU on the China Delisting targets
Baidu (BIDU) – Baidu lost 2.2% in premarket trading after the SEC added the search engine company to its list of U.S.-traded China stocks that could be delisted if they don’t allow American regulators to review three years’ worth of financial audits. Online entertainment company iQYI (IQ) was also added to that list, with its shares sliding 6.6%.
https://www.barrons.com/articles/baidu-futu-sec-hfcaa-stock-delisting-list-51648714207?siteid=yhoof2
How are we going to make more than penny for penny on the way down?
So IF you had 300 to 900 shares we added another long put contract
IF you had 1000 to 1700 shares we added two contracts
IF you had 1800 – 2600 shares we added four contracts
Closing COST out again
We closed 450, 500, 550 and some 600 leaps out for profits over the life of our COST trades
Right around $593-600 we are going to close the current COST leap position down again
And we will probably start another single contract leap call position for the next earnings around 5/26 estimated date
We would probably leap out to 2024
