This week we’ll continue to sell Iron Condor spreads against AMZN, GOOGL and SPX. We plan to close out the 18-Jun-2021 spreads we currently have and open up new spreads for 2-Jul. We’ll close the SPX spread with a 10% gain (since 20-May) and AMZN and GOOGL each at 5% (since 26-May).
AMZN, GOOGL and SPX have all settled into a range and we’ll be careful to watch for any consolidation that may occur on them this week. AMZN appears to be where the consolidation will occur first. Once we see 2-3 days of consolidation, we’ll exit the spread position immediately even if we’re at a loss. We’ll then wait for the momentum to go either long or short.
As we mentioned last week, real estate and REITs were showing consolidation and moving higher. This will continue but you should plan your exit (if long) over the next 10 trading days.
This weeks watchlist includes IBM (undecided), EA (long; we’re short ATVI), WYNN (long), MOS (long), CTAS (undecided).
We continue to stay long JETS and PEJ. We’ll exit PEJ at just over 49 but we’ll hold JETS for the long haul.
Honeywell (HON) continues to show consolidation. We believe the momentum will push it lower by the end of the week. We sold a call spread for 4-Jun and are currently at break even.
We bought a call spread against Petco (WOOF) last week before we learned of the secondary offering of 22 million shares plus potentially 3.3 million additional shares in 30 days. Our position expires 18-Jun so we’ll hold. But this is a good example of where a large corporation can manipulate their stock value shamelessly.
We’re holding a small long position in Tesla (TSLA) for 11-Jun at 600. We see it going to 640+ this week or next week. Once it reaches 690+, we’ll go short.
We also sold a call spread for 18-Jun on Parker-Hannifin (PH). We got 7.50 for the 310-300 call spread but with it currently trading at 7.05, there’s still an opportunity. We see PH moving lower over the next two weeks. Once it hits below 300 and bounces, we’ll go long.
We’re surprised by WalMart’s (WMT) weakness. We still expect it to gap up to 145 in the next 2 weeks and are holding a long position.