When do you call it "too much profits?"
We just did a review this weekend and decided we liked our 12 bullish positions and 1 bearish hedge enough to stick with them without making any changes and today you can see why. Our Options Opportunities Portfolio jumped from $107,152 to $114,302 - gaining $7,150 (7.1%) in a single session. These are good companies, folks - that's why we bought them!
Unfortunately, as much as we like them, we have to be realistic about whether or not they can sustain moves like this. After all, the goal of the OOP is simply to gain 5% each month using as little of our $100,000 base as possible - gaining 7% in a day is a bit over the top! Let's take a quick look at how we got from there to here and see if we need to make any other changes. Also, we had a few new subscribers today - so I want to make sure they know which are our favorite positions and why.
On Friday, we closed looking like this:
Today, we cashed in the main part of our MU spread with a nice profit and we invested that money to pay for a more aggressive hedge with our SQQQ position. It's a good practice to always use some of the money you make on the way up to hedge for the way down - just in case:
See how easy that was? Still $7,150 in a day is a bit ridiculous and indicates we're a bit too aggressively bullish so we need to look at our positions and see if there's some we want to take off the table or protect. Cash-wise, we have the same $97,000(ish) we started with but now it's only 85% of the portfolio vs 90% of our portfolio on Friday.
