Wow it’s already been 3 weeks since we started our new $100K Portfolio.
And what a wild 3 weeks it’s been with the Dow rising 400 points so it’s kind of a shame that we didn’t go gung-ho bullish but the idea was to play conservative and keep cash on the side, waiting to see how things played out before committing. Sadly, we are STILL waiting!
Unfortunately, our FAZ hedged blew us out, taking a huge loss and I decided to stick with it as I’m fairly sure the markets will be turning down but we’ll have to wait until next week to see how that plays out – meanwhile we can make an adjustment to it.
Since we have a lot of buying power and 30 FAZ Apr $15s, we’re going to take advantage of the opportunity to both roll ourselves lower and to make a quick sale of the March $14 calls for .25. and rolling our 30 Apr $15 puts to 30 Apr $14 puts for .30. So we are buying $1 in position for .25 of someone else’s money and .05 of our own – never a bad idea. To the upside, if FAZ jumps past $14 by tomorrow, we will be happy to roll them to April or even July callers and put ourselves back into a vertical, which was the original protection. We are also looking to sell 20 July $12 puts for $1.10.
Unfortunately, the WSS platform does not handle rolls so I will be putting in the legs one at a time, which is a very bad way to try to make adjustments as you need all the legs to work together! That’s why a good trading platform is critical for options trading. Anyway, we’ll do the best we can and see how the fills go on WSS.
GE is right on target, KEY is on target, SIRI is on target, SPWERA is on target, SRS is way off target but we can be patient. UNG is off target but these are Oct puts we sold and we’re not worried and the UNG stock is off 11% but also, we’re not ready to throw in the towel just yet. UYG is on target, VLO is on Target and WFR is on target.
See, wasn’t that easy? Just the one adjustment and we’re all set!