Five winners, zero losers for the January option cycle. Two winners in SPY, one each in GDX, GLD, TBT, all short puts. That's the good news. The bad news is that several of my open positions for February are under water. My short GDX options are down over 130% on a notional basis. My long SPY vertical put spread is down about 70%. Fortunately, while the percentage losses are frighteningly large, the dollar amounts are relatively small.
These past few weeks have been tough sledding. I have been mostly wrong on market direction, and relatively poor on timing entries. The baseball analogy might be fouling off several pitches, scuffling, staying up at the plate, working to regain that smooth and near effortless swing.
As I often write, when a trader reaches the inevitable cold spell, or losing streak, often the best thing to do is to trade smaller, simplify the analysis, and get back to basics.
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