Markets end the option cycle with a relief rally. The subject line refers to my misadventures in RSX, a Russian equity etf. I sold strangles on RSX. I got assigned on one put, lucked out on the other. I hold 100 shares of RSX which is in limbo. Thank goodness the position is tiny. Someone used the phrase, play stupid games, win stupid prizes for those that traded RSX options and other Russian related options.
Elsewhere, I do okay, now down -3.3% for calendar 2022 in my trading account. This is about half as bad as the market overall. I take tiny positions in CHV, LMT, XOM, long after the train left the station. Still doing my delta hedging. An example might be long 5 shares of FB, short the 5 delta call. This didn’t help much during the sharp decline, but way better than some other bull market strategies.
Here are few etfs, year to date, not including dividends:
SLV silver 7.0%
GLD gold 4.9%
SPY SP500 -6.4%
IWM Russell 2000 -6.8%
EEM emerging mkt -7.1%
TLT US20 yr -10.0%
QQQ Nasdaq 100 -11.7%
Silver moves up to the pole position. Nasdaq100 cuts losses for the year in half. Treasuries continue to languish. Those seeking shelter in long term bonds have gotten rained on. So much for the old conventional wisdom of the 60/40 equity/bond portfolio.
As I have been writing, the new normal for me, is less trades, less risk. I’m sure a few traders are having a great year so far. Just as I am sure, some of the more aggressive traders have suffered terrible losses. I could roll out more cliches, but will spare you.
