The Corona virus set
off a market cascade. My losses are approximately 67% from recent
highs. At the end, I moved mostly to cash. After transferring cash in
to meet the margin call, I don’t want to chance another margin call
for now. My account survived, just barely. One or two more really bad
days and the pit would have been too deep.
Like many, I was slow to recognize how the decline would cascade on itself. Like some, I got caught in some of the sharp bear market rallies.
Some blue chip stocks saw huge losses. I remember when Boeing was over $400. Now under $100. Citi C saw a 50% drop to under $40. The S&P500, SPY is down approximately 27% for year.
I plan to scale back on my market activity. I definitely need to regroup, clear my head, after the two-thirds account haircut. I obeyed my rule number one, but just barely:
LIVE TO TRADE ANOTHER DAY.
It is easy to rationalize or give excuses, but the bottom line a bleak -67% for 2020. This compares to a 27% drop in SPY. I met the margin call, and still have my account, If I were more of a risk taker, or more stubborn in terms of taking losses, my account would likely have been liquidated. There were many near bottomless pits for naked option sellers like me. Personally, there are too many losers to note. Tesla was the biggest, accounting for about 20% of all the losses, first on the way up, and then on the way down.
Surviving is a small accomplishment during these scary times. I’ll keep updating the blog every month, after the third Friday option expiration. The reports may by scaled back, because with the smaller account, there will be less trading, possibly a lot less. That’s it for now, stay healthy, be grateful for all blessings, even the small ones.
Like many, I was slow to recognize how the decline would cascade on itself. Like some, I got caught in some of the sharp bear market rallies.
Some blue chip stocks saw huge losses. I remember when Boeing was over $400. Now under $100. Citi C saw a 50% drop to under $40. The S&P500, SPY is down approximately 27% for year.
I plan to scale back on my market activity. I definitely need to regroup, clear my head, after the two-thirds account haircut. I obeyed my rule number one, but just barely:
LIVE TO TRADE ANOTHER DAY.
It is easy to rationalize or give excuses, but the bottom line a bleak -67% for 2020. This compares to a 27% drop in SPY. I met the margin call, and still have my account, If I were more of a risk taker, or more stubborn in terms of taking losses, my account would likely have been liquidated. There were many near bottomless pits for naked option sellers like me. Personally, there are too many losers to note. Tesla was the biggest, accounting for about 20% of all the losses, first on the way up, and then on the way down.
Surviving is a small accomplishment during these scary times. I’ll keep updating the blog every month, after the third Friday option expiration. The reports may by scaled back, because with the smaller account, there will be less trading, possibly a lot less. That’s it for now, stay healthy, be grateful for all blessings, even the small ones.
