Comment by phil

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phil
August 29th, 2019 at 12:42 pm

Speaking of hedges, it's possible I'll want to cash out the LTP and leave the STP if we get a bigger push up next week but, for now, let's protect the LTP a bit better (now $1,325,545) with our STP (now $822,393):



• TLT – $146.50, who'd have thunk it?  Might be tilting at windmills but the June $145 puts are $6.60 so I like that roll for net $3.50 ($7,000). 
• Let's close out all the naked short puts.
• CMG – We could consolidate in the June 2021 $1,020 short calls and, because that's so ridiculous, I find it hard to be worried about the rest.  Over $850 we can just add a June 2021 $900 ($125)/1,100 ($60) bull call spread for $65 to gain $135 upside protection above the short $1,020s.  How crazy would it be if we need that? 



• DXD – Those short Oct $30 calls were $1.50 last week so let's buy them back for 0.60 as a cheap way to make our long Jan $25s more impactful.  



• MJ – Here's one I don't want to close but we should adjust.  Let's just DD on the 30 2021 $20 calls at $6.60 ($19,800).  We could sell 30 Jan $25s for $1 using 141 of 505 days so, in theory, we should have an easy time getting at least $4 of the $6.60 back – but not yet.  
• SDS – We bought these at S&P 3,000 so still ahead a bit.  No need to change.  
• SQQQ – We just added the 200 Jan $35/45 spread as we cashed out the 2021 $30 calls and the short-term hedge suits us for the weekend but we're up $41,000 on the short Jan $45s so we can lock half of that in AND make our longs much more powerful by buying back 1/2 (100) of the short Jan $45 calls for $2.80 (don't pay more).  



See, a few tweaks and we're about $200,000 better protected than we were!