Out of AAPL at .31 for a 1% gain, and flat for the week.
Overall this week, up 12%; and up 46% since the beginning of June when I changed my hedge positions to net long.
An interesting week this week. First the against the market test I did between Friday and Monday (mercifully letting me out early) that I've spoken of previously. Since opening positions on Monday, the S&P moved against me (but with my SPX hedge), while my core positions held flat. So about 7/8 of profit this week came from the hedges.
I originally started this options strategy to remove subjectivity from any decisions to close a position. But the subjective decisions has made the last three weeks very profitable. We have yet to see how this week would shake out without my intevention, but I'm not about to complain about 12% (or, if you include my test, 8% since last Friday). As it stands, I'm confident to take this strategy live with account values that would actually hurt for a loss, in that I'm prepared to take the chances of the 30-40% draw down that's likely if it hits the fan, in exchange for scaling up these winners 10-fold or more. That said, I lack the actual cash on hand to put into this (likely until October).
As I've outlined some time ago (like first couple pages of the thread), stepping up the at-risk money will be slow process capped off at the lesser of prior week's gains or 8% per week. The point of this is to manage risk across time, because a 30% draw down on a compounded account on the week after a 36% gain is effectively a 41% loss against starting value, or a 5% total loss since inception. The 8% is my (somewhat subjective) projection for what this strategy should average. This won't totally mitigate the risks of compounding, but it will help dramatically.
So pleased with this month so far.
