No new trades this week.

music selection:  “Blinded By The Light” — Manfred Mann’s Earth Band

weigh-in:  208.8 +1.8

One saving grace that has kept my portfolio from completely cratering has been the existence of long dated put options I’ve been opening for about 18 months as a hedge.  I have closed five of these hedges for 7,129 in profits.  I have eleven more hedges still open.  Below are the remaining hedges and their cash value as of this writing with unrealized P&L after the dash.

GM: 3,670 – 2,600

HCA: 5,245 – 3,656

HTZ: 2,520 – 1,640

LYFT: 2,870 – 1,950

MCK: 800 – (200)

PTON: 1,020 – (300)

SC: 1,900 – 1,100

T: 1,110 – 189

THC: 1,595 – 850

UBER: 1,736 – 552

RAD: 1,214 – 204

These hedges have a total cash value (if liquidated) of 23,680 and currently sport 12,241 in unrealized capital gains.  I’m watching the markets to see if a bottom appears to be in.  If so, I will likely cash all these out.  Except for covered calls on my NLY position, there will not likely be any other trades until Vol settles down.

Good news, is I think, on the horizon for the markets.  New York is expected to hit peak medical demand and deaths on the 9th.  Stay at home will likely be recommended for another 30 days.  Normalcy could begin returning to the markets my mid-May.

Devour your prey raptors!

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Hedging review

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4 thoughts on “Hedging review

  • April 7, 2020 at 3:06 am
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    FWIW, my collars on SPY and QQQ did their job well. For a while there, volatility was so high that my entire collared positions were worth more than I had bought them for many months ago. In other words, volatility made up for about 10% of stock losses plus several months of time decay on my puts. I recommend the strategy, particularly during the next year when this same virus could re-emerge anywhere.

    Reply
  • April 8, 2020 at 5:38 pm
    Permalink

    Because of my loss in MORL.. I know it is my responsibility to accept losses and read the prospectus for every instrument, but the thing is, I don´t know you but I promise that UBS will never see my money again!

    Reply
    • April 8, 2020 at 11:33 pm
      Permalink

      They cheated us. There will be a class action suit but the lawyers will get all the money. All we can do is move on.

      Reply

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