Out of NFLX for .50 for a 72% loss (that's nowhere near as bad as it sounds because it's about 1/6 the size of a normal position). Just waiting and watching AAPL right now to close out the week.
Out of AAPL at .31 for a 1% gain, and flat for the week. Overall this week, up 12%; and up 46% since the beginning of June when I changed my hedge positions to net long. An interesting week this week. First the against the market test I did between Friday and Monday (mercifully letting me out early) that I've spoken of previously. Since opening positions on Monday, the S&P moved against me (but with my SPX hedge), while my core positions held flat. So about 7/8 of profit this week came from the hedges. I originally started this options strategy to remove subjectivity from any decisions to close a position. But the subjective decisions has made the last three weeks very profitable. We have yet to see how this week would shake out without my intevention, but I'm not about to complain about 12% (or, if you include my test, 8% since last Friday). As it stands, I'm confident to take this strategy live with account values that would actually hurt for a loss, in that I'm prepared to take the chances of the 30-40% draw down that's likely if it hits the fan, in exchange for scaling up these winners 10-fold or more. That said, I lack the actual cash on hand to put into this (likely until October). As I've outlined some time ago (like first couple pages of the thread), stepping up the at-risk money will be slow process capped off at the lesser of prior week's gains or 8% per week. The point of this is to manage risk across time, because a 30% draw down on a compounded account on the week after a 36% gain is effectively a 41% loss against starting value, or a 5% total loss since inception. The 8% is my (somewhat subjective) projection for what this strategy should average. This won't totally mitigate the risks of compounding, but it will help dramatically. So pleased with this month so far.
And open for next week (all 6/30 Expiry, all put spreads): CMG 415-417.50 for .96 credit EA 111-112 for .29 credit GPS 21.50-22 for .20 credit NVDA 155-157.50 for .88 credit PM 119-120 for .34 credit WYNN 134-135 for .28 credit Hedges: SPX 2420-2430 for 2.20 debit TGT 49-50.50 for .44 debit And looking for one more hedge (specifically to offset NVDA and EA).
Damn it. Just realized I overlooked the GPS dividend next Friday...no wonder that position looked so good. I didn't see much in the way of signals today, and had to dig deep into my second string list to find enough positions (only NVDA, PM, and TGT are on my normal radar).
I flattened out ADBE and EA as well--I got out of balance from a risk management standpoint: ADBE out at .34 for a 48% loss. EA out at .41 for a 21% loss. And gone are the profits from Wednesday.
I'm honestly getting a little jittery. I like my winning weeks to be broken up by small losses. I feel the world is out of balance when I get it right three weeks in a row and retribution will be swift and merciless.
Every day is a new beginning. Completely lobotomize the last three weeks. You only have whats in front of you. Trade like its your first day ever.