This was a bad week for the bullish diagonals, especially on Thursday with the big drop in the market. One thing to expect from them is there will be some big swings in profit/loss at times and it takes some patience to stick to the plan when things are swinging down. I did see Matt mention that on his blog recently and it is one of the hardest things to deal with when trading diagonals. Fortunately things bounced back some Friday making the week more tolerable.
NOV Bullish Diagonal
NOV went down the first 4 days of this week and on Wednesday I covered the longs by selling 9 Apr 85 calls for 1.60 credit. Technically on Thursday I could have rolled the shorts down as there was a 33% profit in 1-2 days, but the strike with the delta I needed to roll to was the 85, the same strike I already had sold. Fortunately NOV bounced up 2.30 points today. Profit was down on the week and now stands at 498%.
XLE Bullish Diagonal
XLE followed the same price pattern and on Tuesday I covered the position by selling 6 APR 81 calls for 0.92. Overall profit is currently 375%.
UA Bullish Diagonal
UA bucked the trend and was up 3 of the 5 days this week. There were no trades made so the position is still uncovered. Profit was up in this ticker this week and has now reached 213%.
DECK Bullish Diagonal
DECK was also up 3 of 5 days, but it was down about 3 points on the week, as the down days were bigger than the up ones. On Thursday I covered the longs by selling 2 Apr 95 calls for 1.30. There is currently a loss on the position of 27%.
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