• TheStrangle

Update - Week 5

CRAZY - everyone is crazy. The market is pumping higher and higher. People are willing to pay obscene prices for stocks. No wonder in times where banks pay negative interest rates. Well that's OK for us. As long as our underlying stocks MOVE we are happy. So let's have a closer look on some of them.

Portfolio - currently up 450 %

So far 2020 is a good year for us. Last year we booked profits of 623 %. We calculate in percent as each trader has a different budget. We play the market with 2K for each strangle. Some of you might bet 5K, some 10K and some wealthy might invest 50K and more into each strangle. That's why we do not specify dollar amounts but percentages.

But that is the past (a nice past I have to say) - the present and future is expressed by our portfolio - and this currently sits on unrealized gains of 450 % (that can change any day as all these are open positions which fluctuate with the market). Main driver of the results are APPL, INTC and SBUX. Kind of interesting to see, that the FANG stocks are driving the strangle portfolio. In the past we avoided high priced stocks but if I look on the moves they make I guess we have to change that. In good times these stocks pump the hardest and most reliable. And the day the recession hits, they will drop the most.

OK, let's have a detailled look on some of our strangles.


This Friday INTC rocked the cradle and we can't complain. November 5th we opened a strangle on Intel with a total price of 2,16 $ (1,14 for the Call and 1,02 for the Put). As of Friday noon the Call alone costs over 5 $ which brings us to over 100 % profit. Are we closing the position? No way!

The market is crazy, the people are crazy and Intel marks a new all time high. Yes, it might come back for some days, but now we are greedy. We want to see 80 $ and more before we consider to sell our calls.

Evening note: We changed our mind 180 degree - market can corret any time soon so we sold Inzel and Apple Calls shortly before market closed


Our APPL position is 285% in profit but if Tesla (TSLA) can run way beyond imagination - the electric-car maker's market value topped $100 billion and overtook Volkswagen AG as the world's No. 2 most valuable auto maker - why can't Apple run to 400 $ per share?

We have no clue. As said, the market is crazy. But let's enjoy the party. We will wait and see what happens. The Appple strangle has time till June like the Intel strangle.

Evening note: We changed our mind 180 degree - market can corret any time soon so we sold Inzel and Apple Calls shortly before market closed


We initiated a lot of new positions. Our new buddies are PS, UPWK (already dropping which is nice), AMAT and WORK. All these positions are running until mid July. Let's wait and see how they perform.

Big Losers

Yes we have many rotten apples in our portfolio. These are NOT stocks that dropped like a dead cat, because than our Puts would deliver nice profits. These are the boring stocks that drift sideways which results in deteriorating prices for our options.

Among these current losers are MXIM KBR HPQ WLL to name a few. But hope dies last and we have many weeks time in which these stocks can jump or stumble (let's hope for the best).

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