Great week. The SPY did not move much despite the Greek fiasco, and the strategy gained a lot - around 16%. Covered up the average performance from last week. There was one adjustment I had to make, which propped up the value somewhat. Ended this week at $6,423 and rolled over to next week.
On Thursday, I was already up 14%, so I decided to reduce market exposure. Thus I gained only around 2% despite a favorable market move. Had I not decreased exposure, the gain would have been around 4%. But that is the price you pay for downside protection.
I have also reduced my exposure to the market for next week. A few things to test out - (a) effect of the long weekend - there will be major time decay but my guess is that there wouldn't be much directional movement - unless the other markets move too much or something surprising happens over the weekend. I hope the European bureaucracy enjoys the weekend instead of trying to resolve the crises :)
Below is the performance chart for the 6 weeks:
On Thursday, I was already up 14%, so I decided to reduce market exposure. Thus I gained only around 2% despite a favorable market move. Had I not decreased exposure, the gain would have been around 4%. But that is the price you pay for downside protection.
I have also reduced my exposure to the market for next week. A few things to test out - (a) effect of the long weekend - there will be major time decay but my guess is that there wouldn't be much directional movement - unless the other markets move too much or something surprising happens over the weekend. I hope the European bureaucracy enjoys the weekend instead of trying to resolve the crises :)
Below is the performance chart for the 6 weeks:
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