10 Winners and 5 losers but our loser is a doozy!
Despite being down $7,170 on our FAZ hedge, we are at net $99,079.64 in the portfolio after two weeks, which is fine as we still have plenty of premium to collect and we still have $92,884.64 in cash with $163,661.13 in available buying power. Now comes the hard part – where (if anywhere) do we need to make some adjustments? I was a little too skeptical of the rally, we could have grabbed some more bargains but I thought we’d at least try to make our adjustments to this well-balanced set first and THEN worry about adding more complexity – kind of like this video on balance.
We closed our first position on Friday, buying back the FAZ Apr $17 calls for .95, a $1.68 gain off our $2.63 short entry (up 64%) for a $2,860 gain. As we expected, our other positions did very well as FAZ went down but it does look like we could do with a few more of them, especially if this continues. Don’t forget we were supposed to fill the FAZ spread at $2.20 and it filled at $2.53, which is a $990 difference on 30 contract and that is the entirety of our loss. If you have a broker that does “little things” like this to you – THEY ARE KILLING YOUR PROFITS! Don’t let them get away with it… Our other positions are all open and as follows:
How are our trading plans holding up?
BAC – 10 Apr $15 puts sold for .46, now .23. – up 50% (margin $1,730). $1,730 in margin is a lot to try to make $230 but not if you’re not using it for anything else. Also, it’s $230 in 6 weeks on $1,730, which is 13% or 112% a year so don’t sell these little victories short! We are 50% ahead and way ahead of our goal for 2 weeks on this trade but the real questions are: 1) Do we have any better use for the margin? No, we do not as we are still early in our scales and we anticipate having lots of cash around for a few months. 2) Are we worried about losing the 50% ($230) we already made? Ah, that’s an interesting question. Let’s define “worry,” shall we?
BAC has a rising 200 dma AND a rising 50 dma that don’t look like they want to cross each other. The have just had a huge…
