I am getting punished for my sideways strategies of late. I must admit the rally is at the very top end of what I thought was possible. The market has just went up and up and up. I was in a similar place when the market was going down, down and down. It seems to be a bi-product of having the calendar spread as a primary strategy when Volatility is relatively high.
UBS is taking a $10 BILLION charge, so the stock goes up 2%. Bank of America decides to close a money-mkt type fund for institutional investors. “We can make money right now”, what the hell lets lift that stock up 3%. Bulls rejoice!?!? What is up with that? I guess this is what a bull run feels like. All news is good news. Don’t worry banks, the government won’t let you down.
I doubt I will be finding my “secret” strategy for another 5 or 6 months. So now I must trade like many investors. I am not finding many 3x returns in a week. That is ok, there are always seasons.
My portfolio is down 7% since friday. But the good news is that I am positive on 4 of 7 current positions since opening. Unfortunately, 6 of 7 positions are down on the day. Since inception of current positions the ave positive is 4 times more profitable than my losers. I still don’t like losers, but that is just part of the deal.
At this point I am 24% invested, 76% in cash. I just have no idea what the effects of the fed will be. I am biased to the downside at this point. At SPX of 1516, I have 1200 negative deltas, and 621 theta points. If the market retraces some of it’s recent rally, I will be very pleased.
USB – Exited 2 units of 32.5c calendar for .30. I took a little off the table as the underlying moved to it’s upper support range.
ADCT – entered 3 units of Feb/Jan 17.5p calendar for .16-.17 as a hedge for my previously entered Feb/Jan 15p calendar.
Here is the video from yesterday’s skiing: At least the skiing is going my way
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