I count 115
winners 10 losers for the April option cycle. Self grade is B. I am
up about 2% for the month. I took on more risk to get that gain, and
took some big losses.
My Amazon adventure started innocently, a low risk butterfly out to June. AMZN moved up the next day, and the next. I sold some puts to get back the cost of the butterfly. A few Trump tweets later, I was down like 500% on those legs. I spent the rest of the month rebalancing, doing a few day trades. It all worked out, though I took on a lot of tail risk. AMZN is an expensive underlying. So selling multiple layers of options naked means a large tail risk, if there is a market melt down or melt up. It worked out for me this time. I also profited on FB and in a small way on NFLX.
My Amazon adventure started innocently, a low risk butterfly out to June. AMZN moved up the next day, and the next. I sold some puts to get back the cost of the butterfly. A few Trump tweets later, I was down like 500% on those legs. I spent the rest of the month rebalancing, doing a few day trades. It all worked out, though I took on a lot of tail risk. AMZN is an expensive underlying. So selling multiple layers of options naked means a large tail risk, if there is a market melt down or melt up. It worked out for me this time. I also profited on FB and in a small way on NFLX.
Some etfs
that I track, year to date, best to worst:
GLD +2.4%
IWM +2.1%
SLV +0.9%
EEM +0.3%
SPY +0.2%
TLT -6.6%
My account
is up 2.6%, so things are looking up. Hard to say which way the
market wants to go. Just when I think the bull is back, the bears
come back in. If I knew, I wouldn’t have to hedge, I could trade
directionally.
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