Saturday, May 06, 2017

Weekly: Trimming the hedge

New longs include CMI MLM. I did a lot of hedging of longs, rebalancing, a few adds. Market is at record highs. The good news is that Barrons has an article about how to protect from a crash. Rarely does a sharp decline happen when those are featured articles. Hedge means selling calls when puts have already been sold. Rebalance means adding another layer to a complicated position to get back closer to delta neutral. Add means selling a second or third layer of puts.
Here are the trades (p = puts, c = calls, number near the end is price per contract.
Tue Sell VRX May 8.5 p 21 rebalance
Sell CMI Jun 140 p 35 earnings
Sell MLM May 220 p 50 earnings

Wed Sell IWM Jun 150 c 14 rebalance
Sell SPG Jun 185 c 29 rebalance
Sell AAPL May 139 p 19 earnings
Sell HON Jun 120 p 40 add
Sell MSFT Jun 17 62.5 p 16 add
Thu Sell CAT May 91 p 12 add
Sell CMI Jun 170 c 25 hedge
Sell UNH Jun 185 c 29 hedge
Sell TSLA May 340 c 19 hedge

Fri Sell TLSA May 267.5 p 28 rebalance
Sell WYNN May 130 c 24 hedge
Sell BA Jun 165 p 31 add

No comments: