Stock markets boom in 2019. Bonds, gold also do well. My trading account up about 55%, grade A. The backdrop is up 28% for SPY, but 55% is beyond my expectations.
For new readers, what I mostly do is sell naked strangles way out of the money. I have mostly leaned bullish this year. When adjustments are needed, I may buy at the money options to get back to the desired delta.
That’s probably the biggest change from two years ago, buying the at the money options on gap moves that threaten the position. For small adjustments, I sell additional layers. I still tend to take losses if the strike price is breached. After I got up 30% for 2019, I became more conservative. Even so, I was able to keep up with the bulls.
I often say predictions are for entertainment. The overall tenor of the market seems muted to me, for such a big up year. There is still not much public stock market chatter where I am and online. There are a few signs of heat, such as people bragging about big gains, thinking about trading full time after a lucky streak. Right now, there isn’t a fever pitch that might follow such a big up year.
Me? I remain cautious. I took out some money to pay the substantial tax bill that is coming.
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