Ten
winners, zero losers for the October option cycle. I've been so busy,
that I didn't trade much, but these ten came home as winners. Why the
A- because there was plenty of room for improvement and bigger
profits.
One
of my best percentage gains for the year was on EWG the German stock
ETF. I sold puts months ago, and the return on margin required was
like 80%. Most of the puts I sell are about six weeks out and return
on margin required is usually in the single-digit percentage range.
That's the good news, the bad news was that it was a very small
position in dollar terms.
For
oldtimers, the 25th anniversary of the 1987 stock market
crash, saw another drop. I started trading a few months before the
1987 crash. I believe that those early days of trading have forever
imprinted on me, and a big reason why I tend to be so cautious. Suzy
Orman often talks about a person's earliest memory of money, and how
that impacts them. The first few investments a person makes can also
have a big impact, especially if the “end of the world” happens
when a person is just getting in.
I
wish I could say that I knew the stock market would recover, but
virtually no one did. As with any crisis, there is no way of knowing
where the bottom is. Back in 1987, it was near impossible to make any
trades during that time because it was all done over the phone.
My
schedule looks like it will remain very busy, so updates will tend to
be sparse for a while.
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