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Weekly Report 2022-10-23

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WEEKLY MARKET SUMMARY 

After the scary leg to the downside started at the middle of August (including the early September dead cat bounce), we finally got a bright green week in SPY (S&P500 ETF). Monday's hammer above support has been followed by a gap up at the open on Tuesday and two days of consolidation. The week then culminated with an impressive bull run on Friday until the weekly close.

Of course, no one knows where we're going next, and it's still too early to tell if this is the real bottom. However, the resilience demonstrated thus far at the major 360 support level is encouraging.

Weekly market performance (Week 42/2022)

 S&P500 (SPY) +4.66%
 Nasdaq100 (QQQ) +5.63%
 Dow Jones Industrial (DIA) +4.74%
 Small Caps (IWM) +3.53%

In this green week for the overall stock market, the Market Volatility Index (VIX) dropped a bit but remains quite high, just below the 30 level.

 

WEEKLY TRADING SUMMARY 

Last week I was pretty busy managing my Wheel Strategy Portfolio within the Options Trading Club (OTC). The goal was to cut the worst performing stocks and ETFs and keep collecting premiums by selling calls against the rest of the portfolio while waiting for a market recovery.

On Wednesday, I decided to sell all the shares in BIGCRSRLABUSBH, and TSP, in order to free up some capital to be deployed on fewer and higher quality underlying assets.

On Wednesday and Thursday, I sold covered calls on TNAWDCKWEB, and ARKK, collecting a total premium of $330.

On Thursday and Friday, I closed or let expire worthless covered calls on PHM, CRSP, GPN, KWEB, and NIO, keeping a total premium of $992.

All this effort in collecting premiums from covered calls keeps lowering the adjusted cost basis of the shares and consequently the overall risk of the portfolio.

As usual, if you have any questions or suggestions, just send me an email at [email protected]

Take care and trade wisely!

Gianmarco 

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