Sold half the hedge @ $43.95 just now for approxmiately $2,931 gain. Will post new exact figures at the end of the trading day.
8/4: SPY: -$31,840 hedge: $3,774.03 Net for this trade: -$28,065.97 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) -------------------- -$22,780.96 Deciding where to put the next SPY buy. Originally I said 120 (and today's low was $120.06!). I may keep it there. After all, there is no way to predict price so there's no way of knowing how low price will go. I may lower it to 115 just to get a better average price. It's not like I'm in a hurry to close out this trade. I'm not worried about the drawdown in the meantime. I'm making money on the hedge and dividends if the position stays open long enough. I'm not using 136 as a target anymore, however, regardless.
8/5: SPY: -$32,416 hedge: $3,903.06 Net for this trade: -$28,512.94 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) -------------------- -$23,227.93
New SPY position: 5,700 shares @ $123.54. I'm considering the possibility of future positions being purchased in SSO in order to use margin without really using margin.
8/8: SPY: -$64,296 hedge: $7,304.76 Net for this trade: -$56991.24(unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) -------------------- -$51,706.23 I really wonder how much lower we're going to go. I don't have enough account equity left to be buying more SPY without using margin if price goes down further, so I think I will use SSO instead. Patience is key. While everyone is is losing money trying to predict short term direction, I am just waiting. Does it suck to be down $51k? Yeah. That's more money than I made in a year at my first corporate job out of college. It sucks when I think to myself "hey, had I not entered this trade, I could go buy a car and still have more money than I do right now." But it's about patience. I know SPY will eventually go back up, and when it does, I will make a lot of money. "Be greedy when others are fearful." Everyone is freaking out right now. I am loading up.
I've been following your journal and your applaud your resilience and openness in your trades. I also believe the market is going to bounce back and am already allin as of yesterday counting on it doing just that. Do you mind me asking what your breakeven is now? EDIT: nevermind, I noticed it one post up. Thanks.
8/9: SPY: -$34,542 hedge: $4,618.59 Net for this trade: -$29,923.41 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) -------------------- -$24,638.40 Drawdown from yesterday reduced by over 50%.