The Beerish Bull's Great Chronicle of Alcohol and Poor Decisions

beerntrading said:
Picked up some VIX calls on a ratio spread (11/15 expiry - 4x 9.50 short, 8x 11 long. $1 net debit). They just provide a bit of systemic news risk protection.
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Who remembers this little guy?

After 40 days, almost none of which in the green, it expired today. Yesterday on market close it was showing that it would be a .45 debit to close. Today it settles for 1.29 credit. That's about $700 overnight, and just over $100 gain on the position. Better than a stick in the eye (and made my account look WAY better this morning).
 
Ouch.

NFLX closed at 1.65.
MSFT closed at .64
UPS closed at .93

Hedges are a total loss. This was the worst week I've ever had with this strategy and I know why. Needless to say, not much in the mood to talk about it right now. I'm going to tuck my tail between my legs and go cry for a bit. See you guys in a few weeks when I can talk about this debacle.

I have been doing quite well on directional trades recently, so I'm actually not doing nearly as bad as this thread would suggest (I'm still above last Friday's close, which itself was an all time high)...but still, not a happy camper today.
 
Well, time to kick this thread back to life because I've never had such conviction of market direction. Today (maybe into next week), we have a bit more down move to go from SPX at 2580, but this is the end of the correction. It's time to get bullish. I'll be slowly buying stuff up as we round the bottom (with tight stops in case I'm wrong).

First up. XOM. Long from $75 and picked up some 77.50 Mar calls for 1.31. It led us into this mess, it can lead us out.

I'll be back with more later today (update on recovery from the last post, the last couple months, and a few more)...but for now, it's time to go bear huntin'!
 
Just picked up Mar $160 call on AAPL for 3.65...will add to this as the day goes on. Expecting one more down move, and then another up move...hopefully get better fills on both scaling in.
 
Welcome back to the world of "Why did I do that ???" :->)

I did some diagonals on XOM yesterday, trying to capture some fat one day until expiration premium. I did just that and I'll be buying the shares tonight :-( At least I have the long leg for next week to roll down and lower cost basis.

I booked the gains in my long IWM puts that was hedging the annuity that we spoke about. Nice gains but had to move on to the SPY because the IWM B/A spreads were Holland Tunnel wide and prohibited rolling. Too much of a haircut. With this AM's drop, I'm trying to convert some of the long SPY puts into a no cost 10 pt wide vertical. Almost there...

I've been hedging some long gold stock positions with long puts on the stock GOLD. Caught an 18 point drop on GOLD (rolled the puts down multiple times) and that offset the losses on the others. It's kind of frustrating but I shouldn't complain given what is happening to most everyone else.

BOOM, just filled. I own some SPY 245/235 bearish put spreads for a debit of 44 cents. LOL. That's the actual cost! OK, now we need a reversal so I can add some more long puts :->)

Cheers
 
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