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Saturday, February 24, 2024

$100K Hedged Virtual Portfolio Update

Well, there was no reason to adjust the virtual portfolio this weekend but now I'm a little concerned (as I went short-term bearish yesterday morning) and it's a good time to review our positions.

Monday gave us a lot if cushion but that doesn't mean we have to squander it.  Our last review was on the 25th and we had made adjustments on the 21st in member chat, triggering the plays we had decided to wait for the previous weekend.  Notice we haven't really had a down day since so there has been no reason to adjust what has essentially been a bullish set.   Yesterday, in comments, I called for covering our UNG play but that's the only move we've had to make in 2 weeks.  Sadly, vacation time is over so let's look over our positions and see where action will be required:

Our original positions were: 

  • 500 UYG at $3.48, selling 5 May $3 calls for .72 and 5 May $3 puts for .28, net $2.48/2.74
    • UYG now $3.91, May put and call combo now $1.05 = net $2.86 ($190 profit on $1,240 = 15.3%)
      • We are fine being called away on this position
  • Selling 2 FAS $7.50 puts for .45 naked
    • FAS closed at $9.40 so 100% profit of $90
  • 500 C at $3.04, selling May $3 puts and calls for $1.11, net $1.93/2.47
    • C now $3.31, We took out the callers for .30 on 4/21 and the May $3 puts are .20 = net $3.11 ($590 profit on $965 = 61.1%)
      • We should close this position, it is above our profit expectations
  • Selling 2 IYF May $36 puts for $2 naked
    • IYF closed at $41.80, May $36 puts $.35 ($330 profit on $400 =82%)
      • Because of the stress tests, I would rather close these out
  • 4/21 Sold 2 IYF May $34 puts for $2.10 naked
    • IYF closed at $41.80, May $34 puts $.20 ($380 profit on $420 =90%)
      • Because of the stress tests, I would rather close these out
  • Selling 2 JPM May $29 puts for $1.95 naked
    • JPM closed at $34.77, May $29 puts $.23 ($344 profit on $390 = 88%)
      • Because of the stress tests, I would rather close these out
  • 4/21 Sold 2 JPM $28 puts for $2 naked
    • JPM closed at $34.77, May $28 puts $.16 ($368 profit on $390 = 92%)
      • Because of the stress tests, I would rather close these out
  • Selling 7 FAZ May $10 puts for $2.40 naked (adjusted to reflect Monday’s gap down open)
    • Stopped out on 4/21 at $1.60 ($560 profit on $1,680 = 33.3%) 
  • 5 FAZ Oct $12.50 calls for $4 (adjusted), selling 5 May $21s for $1.05, net $2.95.

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