Katafin Week 12 — Looking for Direction
By: John Andrews
Tags: Options Trading, Options Strategy, Retirement

Image Source: John Andrews, CES 2017

Week #2 of ‘Vaccine Monday’ and the market was off to a good start. The rally would lose steam throughout the week as irrational exuberance over COVID slammed into the reality of record infection and hospitalization rates along with the sobering reality of many states and local governments imposing new restrictions. The biggest challenge for the economy I believe is still the lack of confidence of the majority of shoppers to engage in normal patterns. However, this is also an opportunity for both the displaced consumption patterns in addition to new shopping norms.

Traditional retail will be forever changed no matter the outcome and brands lacking a direct shopper relationship will be at a disadvantage. In fact, all businesses that have outsourced relationships to third parties such as agencies and social media platforms will likely cease to exist in the not too distant future. You can debate or you can invest in your convictions has become my new mantra.

This was by far the best week for the model yet. I continue to struggle with patience and staying the course, but with over a 2% return secured on Monday, I was able to be a bit more adventurous in exploring the shifting emotions of the Covid positioning.

Net Invested Capital — $99,298

Assigned: SDOW-300 shares @ $17-$5,100. RCII-100 Shares @$34-$3,400. SNAP-$4,500 sell. XPEV $2250 sell. UDOW-$7,700 sell.

GE Premium-(3) $9.50 11/20 Put-$54 & $9.5 12/11 Put — $120 (closed 11/20 early for $34, 1 expired worthless) $85. $9 11/20 Put-$56 (closed early for $14) $42

NRZ Premium-(2) 11/20 $8 Put-$18 (closed early for $6) $12.

Town Premium-$20 11/20 Put-$20 (closed early for $5) $15. $20 12/8 Put-$55 (closed early for $30) $25.

MUR Premium-(3) $7.5 12/18 Put-$75 (closed early for $45) $30.

HEES Premium-$25 11/20 Put-$50 (closed early for $15) $35.

RCII Premium-$34 11/20 Put-$40 (assigned) $40.

TOL Premium-(2) $44 11/20 Put-$130 (closed earlyfor $40) $90.

RIO Premium-$62.50 11/20 Put-$55 (closed early for $25) $30.

XPEV Premium-$35 11/20 & $40 11/20 Puts-$168 (closed early for $26) $142. $45 11/20 Put-$79 (expired worthless) $79. $22.5 11/20 Call (assigned-$294.84 profit)

GOLD Premium-$32 12/18 Call-$30 (closed early for $16) $14. $32 12/24 Call-$17 (closed early for $11) $6.

ASAN Premium-$30 12/18 Call-$37 (closed early for $25) $12.

SDOW Premium-(2) $20 Call 12/18-$80 (closed early for $40) $40.

INTC Premium-Missed a trade from the week prior. It happens. $13.

WORK Premium-(4) $31.50 11/20 Calls-$16 (closed 1 early for $3, 3 expired worthless) $13.

DIS Premium-$143 11/20 put-$150 (assigned) $150.

PTON Premium-$125 11/27 Call-$70 (closed early for $39) $31. $123 11/20 Call-$21 (closed early for $7) $21.

DIS Premium-$135 11/13 put-$145 (expired worthless) $145.

UDOW Premium-$91 11/20 Put-$110 (closed early for $65) $45. $77 11/20 Call-$200 (assigned — $237.97 profit)

AAPL Premium-$116 11/20 Put-$29 (expired) $29.

SNAP Premium-$41.5 11/27 Call-$91 (closed early for $58) $33. $38.5 11/20 Call-$48 (closed early for $10) $38. $40.5 11/20 Call-$45 (assigned-$1,432.9 profit)

U Premium-$110 11/20 Put-$80 (expired) $80.

WMT Premium-$145 11/20 Put-$177 (closed early for 54) $123. $149 11/20 Put-$47 (closed early for $20) $27.

COLD Premium-$35 11/20 Put-$35 (closed early for $20) $15.

PLTR Premium-(3) $13 11/13 Puts-$105 (expired worthless) $105.

TWTR Premium-$41 11/20 Put-$26 (closed early for $15) $11.

DKNG Premium-$41 11/20 Put-$85 (closed early for $15) $70.

Total Return: $3,573.76, 4.10%

The market wavered this week, declining .7% and yet the model was able to cash out some positions modestly and leave a healthy $120K+ for deployment the following week. There is still much to learn but I am encouraged that this will continue to be a systematic plan for investing with steady return.

Note: This is not financial advice, and I am not a financial professional. This article is an account of my personal experience. This information is for entertainment purposes only.