8/10 SPY: -$64,125 hedge: $7,070.16 Net for this trade: -$57,054.84 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) -------------------- -$51,769.83 Pretty much exactly where we were on 8/8.
It's not a direct hedge. I will occasionally cash part or all of it out or sometimes add to the position. And since I can't predict direction I have no way of knowing where price is going to go, or for how long. The hedge is basically a "bonus," whether it's an extra $100 or $5,000. even if I get it wrong and never close out the hedge for a profit (because price is random), I'm still net profitable for the trade. I get paid more SPY dividend this way, too, because I'm holding larger SPY positions.
8/11: SPY: -$35,397.00 hedge: $4,489.56 Net for this trade -$30,907.44 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$25,622.43
8/12: SPY -$30,894.00 hedge $4,149.39 Net for this trade -$26,744.61 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$21,459.60
8/15: SPY: -$16,644.00 hedge: $3,011.58 Net for this trade: -$13,632.42 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$8,347.41
8/16: SPY: -$22,515.00 hedge $3,469.05 Net for this trade: -$19,045.95 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) ------------------------ -$13,760.94
8/17: SPY -$22,059.00 hedge $3,422.13 Net for this trade -$18,636.87 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$13,351.86 Pretty much no change from yesterday.
Oops, forgot to post an update yesterday: 8/18: SPY -$51,471.00 hedge $5,615.64 Net for this trade -$45,855.36 (unrealized) +$1,223.60 (realized) +$2,931.69 (realized) +$1,129.72 (dividend) ------------------------ -$40,570.35