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Today was one of the best trading days of my life.
It actually started a few weeks ago when it appeared as if there might be even just a slight dip. At the time I was holding 50% EEM, an emerging market etf that I write calls on every month, 30% AAPL Leap calls with a high delta, and 20% GLD leap puts.
First, on the 7/15 expiry, I got called out on large portion of my EEM. It had been 9 months since I had last been called out, so I had been playing it safe with the hope of making it to 12 months for tax purposes. without having to worry about that any longer, and figuring there might be a dip, I sold in-the-money calls to pocket the higher premium. So even though EEM is down a bit, it won't hurt me as much unless it absolutely tanks before August expiry.
Then last week, as the chatter increased about the market going down, I got paranoid about being short on GLD even though I still have a bearish long term view. I dumped the puts on Tuesday and replaced them with SPY puts to serve as insurance on the EEM. I rarely, rarely ever trade SPY puts, but when I do, I never hold for more than 3 days because of time decay. Because of that, I sold them on Friday morning before the Friday dip.
I was then planning to buy DNDN, but didn't have enough time to do the amount of research I like to do before trading a stock. Especially a biotech. That's why I only have ETFs and AAPL. So, instead, I just ended up just buying more SPY puts, sold them this afternoon for about 400% what I paid, and then bought up some more AAPL on the dip.
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