Wow, what a week it was! Both the Dow and SPX took a nosedive! Oil kept on falling and pulled the energy stocks lower and lower. To a big extent, that soured the mood for the broader market. Once the momentum took over, it was feeding frenzy for the bears!
We had a nice week, finding profitable trades on both sides. Our closed trades were mostly positive. CMI, CF, UNP, and NFLX puts worked well. Here are the closed trades for the week:
CMI Dec 20 2014 Put 143.0 | $2.15 | 4.88% | 12/12/2014 |
FAS Jan 17 2015 Call 130.0 | $4.75 | -4.04% | 12/11/2014 |
BIDU Dec 20 2014 Call 230.0 | $5.40 | 35.00% | 12/11/2014 |
LULU Jan 17 2015 Call 47.5 | $4.30 | 22.86% | 12/11/2014 |
CMI Dec 20 2014 Put 147.0 | $4.10 | 51.85% | 12/10/2014 |
CF Dec 20 2014 Put 260.0 | $9.30 | 45.31% | 12/10/2014 |
SCTY Dec 20 2014 Call 52.5 | $1.11 | -58.27% | 12/10/2014 |
BIDU Dec 20 2014 Call 230.0 | $4.15 | -17.00% | 12/10/2014 |
BIDU Dec 20 2014 Call 230.0 | $5.00 | 6.38% | 12/09/2014 |
BIDU Dec 20 2014 Call 330.0 | $4.70 | 38.24% | 12/09/2014 |
UPS Dec 20 2014 Call 110.0 | $0.85 | -61.54% | 12/09/2014 |
AMZN Dec 20 2014 Put 307.5 | $8.20 | 7.89% | 12/09/2014 |
UNP Dec 20 2014 Put 115.0 | $3.20 | 66.67% | 12/09/2014 |
SNDK Dec 20 2014 Call 104.0 | $3.70 | 15.62% | 12/08/2014 |
NFLX Dec 12 2014 Put 345.0 | $7.00 | 12.90% | 12/08/2014 |
NFLX Dec 12 2014 Put 345.0 | $7.50 | 20.97% | 12/08/2014 |
SNDK Dec 20 2014 Call 104.0 | $3.30 | 3.12% | 12/08/2014 |
NFLX Dec 12 2014 Put 347.5 | $7.40 | 17.46% | 12/08/2014 |
NFLX Dec 12 2014 Put 347.5 | $6.60 | 4.76% | 12/08/2014 |
USO, the US ETF for oil, closed at a new all-time low of $21.93 this week! Previous low was $22.74, set at the market lows in 2009. Energy stocks have been leading the market decline. People who jumped in and bought energy stocks last week were cut by falling knives! We will definitely have a more detailed discussion on the energy sector tomorrow in my weekly Market Forecast.
We will also look at financials and biotechs, which are both still relatively healthy.
Happy weekend and HappyTrading! ™