How my long put protection is doing.

music selection:  “Bleed Like Me” — Garbage

weigh-in:  213.8 +1.4 – too much pizza!

I don’t have any trades this week so far.  VXX is “close” to being ready to roll again.  My  target exist is 15.75 and the current bid/ask is 15.10/15.60.  Otherwise, I want to review how my portfolio “insurance” is doing.  This section of my portfolio did really well during the COVID-19 crash.  Obviously, it is a lot harder to be ‘short’ right now.

  • DRI – 980 capital at risk, 585 unrealized capital loss
  • LYFT – 920 capital at risk, 195 unrealized capital gain
  • PLAY – 1,110 capital at risk, 330 unrealized capital loss
  • UBER – 1,184 capital at risk, 521 unrealized capital loss
  • XOM – 630 capital at risk, 315 unrealized capital loss
  • DAL – 1,050 capital at risk, 600 unrealized capital loss
  • RAD – 1,010 capital at risk, 60 unrealized capital loss

All together, I have 6,884 in capital at risk on long dated long puts for insurance.  The current P&L is 2,219 in the red.  Because I’m paying for a lot of time value, these positions will mostly be losers over the long term.  But they can pay out big in a market crash as I saw during mid March where I collected triple digit nominal returns on my hedges.

Devour your prey raptors!

Review of hedges

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One thought on “Review of hedges

  • June 9, 2020 at 8:29 pm

    When I capitulate and go all long, I’ll let you know so you can double your short exposure.


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