10. Week #3 Begins
April 17, 2023
DISCLAIMER: This is a simulated educational exercise using paper trading fake money. This is not investment advice and is not intended to be copied.
TLDR
- Trades today
- SOLD -1 IBM 21 APR 23 124 PUT @1.34
Today In Review
Today I was in a rush but had 5 minutes to look around. In that time I quickly analyzed three stocks: ASML, ENPH, and IBM – executing a trade on IBM.
ASML
ASML was flagged by the AI in a bullish short term pattern. I analyzed the price cloud and saw this for the 14 day projection:
I immediately had three concerns:
- The price could drop out in a few says
- There wasn’t a convincing upside long term
- At ~$666 a share, this would lock up an enormous portion of my capital
For these reasons I passed on an ASML trade at this time.
ENPH
Next I looked at ENPH. In a similar way, ENPH was flagged as bullish but in this case it did show a potential long term uptrend in the 14 day:
This seemed positive. However, when I checked out the option chain it was just much too low of a premium given what else is out there:
I was uninterested in locking up over $21k for a week just for a $0.50 premium. Therefore I passed on the trade.
IBM
Third up was IBM. Unlike the other stocks this one was not nearly as bullish from the AI:
However I was itching to make a trade and running short on time. One thing I did notice though was that the premiums seemed fairly high compared to the stock price. Additionally, the AI seemed to indicate this week was fairly stable around the $124 mark. I decided to give it a whirl, and wrote a put at that strike for a cool $1.34 premium
Portfolio Standings
| Portfolio Value (Open) | $ 101,743.00 |
| Portfolio Value (Close) | $ 101,877.00 |
| Change (Day) | 0.13% |
| Change (Tot) | 1.88% |
| Buying Power (Close) | $ 54,600 |
| Trades Made Today | 1 |
Closing Thoughts
Reminded yet again today that 5-10 minutes a day is not a lot of time to make significant financial decisions. Having an AI co-pilot is the only way this is remotely possible for me. Later this week I will revisit the usual suspects (TSLA, NFLX, so on) with my remaining capital if there are no additional picks.