15. Week 4 Hot Start
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 CAR 100 28 APR 23 162.5 PUT @1.75
- SELL -1 ENPH 100 28 APR 23 210 PUT @6.95
- YOLO
Today In Review
Today I realized I had already hit my monthly 2% return target and I seriously considered just sitting in cash to take the win. However with it being the top of earnings week with large premiums I couldn’t resist but to take a peek at the AI. This lead me into two risky trades.
CAR
First up I noticed CAR flashing green. This had not appeared in previous weeks so I figured the AI must be picking up on something interesting. Digging in, I was seeing a high likelihood of expiration around the $160 mark (as it was trading around $175):
![](https://optionalai.com/wp-content/uploads/2023/04/Screenshot-2023-04-24-at-10.01.20-AM-642x1024.png)
Pulling up the charts however, a lot of the usual technical had a mixed review:
![](https://optionalai.com/wp-content/uploads/2023/04/Screenshot-2023-04-24-at-10.02.58-AM-1024x444.png)
Specifically what I saw was:
- High volume typically correlates with selling
- The Ichimoku cloud was bearish
- The RSI and Bollinger bands indicated it was over sol
However, given the performance of the AI over the last few weeks and a seemingly solid line of support around the $170 mark, I decided to give it a go. There was a particularly tempting premium at $162.50 vs the $160 the AI pointed to, so I decided to be aggressive and go for it. I wrote the put for $162.50 with 4 DTE
ENPH
Next up ENPH. I avoided it the last few weeks but figured it was time to give it a look since I had so much capital able to be deployed. Much to my surprise I saw the AI indicating a potential very strong level of resistance with amazing premiums:
![](https://optionalai.com/wp-content/uploads/2023/04/Screenshot-2023-04-24-at-10.05.06-AM-498x1024.png)
I had to see more. So I pulled open the charts and noticed something interesting, basically the opposite of the CAR situation:
![](https://optionalai.com/wp-content/uploads/2023/04/Screenshot-2023-04-24-at-10.07.18-AM-1024x501.png)
By that I mean:
- RSI and Bollinger Bands indicating there’s plenty of room to drop
- Ichimoku cloud somewhat bullish (if you convince yourself)
- Large volume periods are green
Turning to the options chain the premiums were massive:
![](https://optionalai.com/wp-content/uploads/2023/04/Screenshot-2023-04-24-at-10.06.06-AM-1024x602.png)
I couldn’t help but be intrigued, and at this point I had already hit my 10 minutes a day limit and coffee break was over. So I through in an order to sell 1 put at the $210 mark for a cool $6.95 premium.
Portfolio Standings
Portfolio Value (Open) | $ 102,006.00 |
Portfolio Value (Close) | $ 102,876.00 |
Change (Day) | 0.85% |
Change (Tot) | 2.88% |
Buying Power (Close) | $ 62,750.00 |
Trades Made Today | 2 |
Closing Thoughts
Still getting a lot done in ten minutes a day. Today is my most aggressive yet, surely one of these times the AI will be wrong and I’ll be put something…