My gains from trading February options were 3.59 percent of my January portfolio value. Profits were higher because I traded much more aggressively than usual when the market was weak with short positions, bearish spreads, and naked calls. I reduced bearish trades as the market rallied and maintained a good portion of the profits made.
My big mistake over the past month was exiting positions in utility companies too aggressively. I had been holding losing positions for months and saw the rally as a chance to exit. The rally continued high enough that I regretted not staying along for the ride longer. However, I have not made big commitments to utilities for March, at least not yet.
I bought puts at 104 and sold three times as many puts at 101 in IWM. My thought is that I can hedge if IWM falls through 101. The ideal development would be to fall to 101, making the puts I own valuable, but not beginning to erode profits by penetrating 101.
I took losses on several share positions.
My gains from trading January options were 1.49 percent of my December portfolio value.
I closed short positions in AGQ, GLD, and FXC with losses. I sold in the money puts to close AGQ and GLD and bought back FXC puts.
Here was my activity on expiration day…
|Put ratio spread profit -||$0.35|
My paper gain for trading December options was 1.50 percent, but the fall of all the shares I am holding has drug my portfolio down. My performance for 2013 as of the close is -3.92 percent.
BVN closed under 11. I was short December puts at 11, so I will own shares on Monday. I sold calls against those shares late today.
I began accumulating shares of SDT in October 2012, added more in March 2013, and still more in September. I decided to cut my losses today and sold all shares after they went ex-dividend. Price has been weakening on fundamental concerns and I am unwilling to keep holding as price edges lower.
I am realizing a sizable inventory of losses this month, some of which started a year ago. At present, my loss for November is showing as -3.56 percent of my portfolio value. June, October, and November have been bad months for me and I am showing a loss for the year of -0.99 percent as of tonight. I have enough dividends coming to turn me back to positive for the year, but this is not going to be a good year.
Here is my activity for today:
I booked gains of 1.12 percent of my portfolio value from trading October options. However, I am holding large losses in JCP thinking price is near a bottom and will not sink much farther. I’ve lost $1.00 per share since deciding to hold the position longer, but I am not convinced exiting now is the right move. Hmm.