Was out of town last week and just returned late yesterday. Last week was another bloodbath and I bled as well. Several of my option spreads lost money. My NFLX 160 put long was exercised and I was long 10ooo shares of NFLX this morning with a huge margin call. Luckily, I was able to sell NFLX for a $1 profit (at $161) this AM and closed the margin call.
The market is very oversold. VIX is ~19. It is very ready for a rebound. But when will this rebound occur is anybody’s guess. It will need a catalyst. At this juncture, the only type of trades I will do are covered calls (not have to worry about expiration). So I chose FFIV which has withstood the current downtrend relatively well. I am net short FFIV (with short calls expiring in July). I entered a covered call of FFIV with a strike at 105 expiring this Friday (10.1% return).
