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21 February 2014 Trades

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.

Option sales:
UNH Feb70Put $0.05
GLD Feb127Put $0.07
TUR Feb44Put $0.05
UNH Feb28-65Put $0.04
EEM Feb28-37Put $0.04
EEM Mar7-35.50Put $0.05
EMB Mar100Put $0.13
KOL Mar17Put $0.10
WPC Mar55Put $0.10
HK Mar4Call $0.25
Spread Trades:
IWM Mar7-104Put -$0.09
IWM Mar7-101Put $0.15
SPY Mar181Put -$1.46
SPY Mar179Put $1.05
SPY Mar176Put $0.68
CVE Mar22.50Call $3.36
CVE Mar25Call -$1.00
EWT Shares 1/13/2014 $13.93
EWT Shares 2/21/2014 -$14.03
CYB Shares 2/21/2014 $25.42
CYB Shares 1/17/2014 -$25.59

19 February 2014 Trades

ETR moved above 65 today, so I bought shares to cover the Feb 65 calls. Soon afterwards, ETR began to fall.

I sold DWX puts I was long to deconstruct a bear spread. I decided to take the risk with Feb 47 puts I am short.

FE appeared likely to exceed 32, so I repurchased Feb 32 calls at a small profit.

ETR Shares 2/19/2014 $65.03
DWX Feb48Put 2/19/2014 $0.50
DWX Feb48Put 1/30/2014 -$2.64
FE Feb32Call 1/22/2014 $0.35
FE Feb32Call 2/19/2014 -$0.25

14 February 2014 Trades

Option adjustments:
DWX Feb47Call 1/22/2014 $0.50
DWX Feb47Call 2/14/2014 -$0.55

11 February 2014 Trades

I closed my position in ETR at one of the worst prices of the day. Utilities began to rally as soon as I closed. I did capture the dividend, however.

I decided to close the top of a February SPY spread while prices were good. Maybe I should have kept the puts I owned, but I was in a closing mood.

Option sales:
UPL Feb21Put $0.05
EMR Feb60Put $0.05
AIG Feb55Call $0.05
ACIW Feb45Put $0.05
ACIW Feb65Call $0.05
ETR Mar67.50Call $0.11
Spread adjustments:
SPY Feb182Put 2/11/2014 $2.04
SPY Feb182Put 1/17/2014 -$1.89
SPY Feb182Put 2/11/2014 $2.04
SPY Feb182Put 1/21/2014 -$1.85
SPY Feb180Put 1/17/2014 $1.37
SPY Feb180Put 2/11/2014 -$1.16
SPY Feb180Put 1/21/2014 $1.28
SPY Feb180Put 2/11/2014 -$1.16
ETR Shares 2/11/2014 $62.13
ETR Shares 10/16/2013 -$63.61

10 February 2014 Trades

I went crazy and shorted TLT again. I had a daily signal. Unfortunately, the daily signal is not confirmed by the weekly and TLT rose throughout the day. Hmm.

I closed shorts spreads in KIE and KRE, reducing projected profits slightly. I took action both to preserve profits and to eliminate rental fees for hard to borrow shares. I am reporting the net gains rather than reporting the details.

Three short call positions closed in the money on Friday, making me short the shares today. I sold all three positions, two with profits and one with a loss.

Option sales:
TLT Feb14-106.50Put $0.40
FXE Feb14-136Call $0.05
RWR Feb71Put $0.05
Shares sold short:
TLT Shares $106.77
XLE Shares 2/7/2014 $83.50
XLE Shares 2/10/2014 -$83.38
FXE Shares 2/7/2014 $135.00
FXE Shares 2/10/2014 -$134.69
XLI Shares 2/7/2014 $50.00
XLI Shares 2/10/2014 -$50.09
Deconstructed Spreads-Net Gain:
KIE $0.89
KRE $1.15

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