Barely positive week - 1% up. Not good.
My decision to roll on Thursday instead of Friday was accurate. But Spain had to go in recession and mess up my calculations. Still the portfolio is standing still at around $5,474.48. Comforting fact is that, the strategy has preserved value in the "worst week of 2012".
More scary part is that the heavy options trading that was done on Monday betting that SPY will close below 138 has reaped profits to those who made the bet. This smacks of insider trading. The news of Spain's recession must have leaked and people opened options positions on Monday which were expiring on Friday. Scary stuff happens every week in the market.
My guess is that Monday will be a positive day and hence I havent made much changes in the positions - though I removed some top-side protection. No chance that the market will go above this weeks highs of 141.48. In fact, I should come up with a strategy to capitalize on that. Maybe sell some calls at 141 and buy others at 143.
Below are the strategy returns for 3 weeks.
My decision to roll on Thursday instead of Friday was accurate. But Spain had to go in recession and mess up my calculations. Still the portfolio is standing still at around $5,474.48. Comforting fact is that, the strategy has preserved value in the "worst week of 2012".
More scary part is that the heavy options trading that was done on Monday betting that SPY will close below 138 has reaped profits to those who made the bet. This smacks of insider trading. The news of Spain's recession must have leaked and people opened options positions on Monday which were expiring on Friday. Scary stuff happens every week in the market.
My guess is that Monday will be a positive day and hence I havent made much changes in the positions - though I removed some top-side protection. No chance that the market will go above this weeks highs of 141.48. In fact, I should come up with a strategy to capitalize on that. Maybe sell some calls at 141 and buy others at 143.
Below are the strategy returns for 3 weeks.
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