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Weekly Report 2022-10-30

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WEEKLY MARKET SUMMARY 

Despite the fact that my weekly market analysis is normally focused on SPY (S&P500 ETF)DIA (Dow Industrial ETF) piqued my interest this week. After a gap up at the open on Monday, bullish pressure persisted throughout the session on Tuesday. Following some uncertainty on Wednesday and Thursday, the week culminated in an impressive bull run on Friday until the weekly close. With prices highly overextended and in short-term overbought territory, it will be interesting to see how far this rally can be sustained on the way to the key resistance level around the 340 mark.

Weekly market performance (Week 43/2022)

 S&P500 (SPY) +3.94%
 Nasdaq100 (QQQ) +2.11%
 Dow Jones Industrial (DIA) +5.69%
 Small Caps (IWM) +6.06%

After another green week, the Market Volatility Index (VIX) has now dropped just below the 26 level.

 

WEEKLY TRADING SUMMARY 

During this green week, I was busy once again managing my Wheel Strategy Portfolio within the Options Trading Club (OTC). The goal is to collect premiums by selling covered calls to lower the adjusted cost basis of the shares and, consequently, the overall risk of the portfolio.

Because of the recent bull run, I had to adjust two open positions to avoid getting the shares called away while receiving additional net credit. I own 200 shares of each of these underlying, but I have only sold one call contract thus far. So, I might decide to also deploy the second contract in case the position is still in-the-money at the end of next week.

 

I rolled out WDC 10/28 CC $35 to 11/04 CC $35 for an additional $0.66 net credit

I rolled out TNA 10/28 CC $33 to 11/04 CC $33 for an additional $0.42 net credit

 

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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