Our first down week!
In last week's $111,659 Virtual Portfolio Update, we had a fairly bearish stance expecting a downturn and now we are riding it out. The top-line of the virtual portfolio was hit because we bought back out FAZ covers ahead of their reverse-split and it remains to be seen what we decide to do about that after we check out the new option schedules. Fortunately, our virtual portfolio is self-regulating as we have moved back to more cash just when, hopefully, there are bargains to be had. We will be looking for signs of stablization but expect there to be new buys this week unless we break down below yesterday's lows.
The first two weeks after you sell options are usually the worst and the rising VIX has boosted the premiums of the puts and calls we sold but none of that matters until expiration day and we are mainly on target. It's important to get used to the ebb and flow of this over time. We only add the profits as we close positions from our April 10th start with our virtual $100,000. We are not including profits in the header from the positions still working because: IT ISN'T REALLY A PROFIT UNTIL YOU CASH IT OUT...
The primary goal of this virtual portfolio is to be conservatively hedged. The secondary goal of this virtual portfolio is not to mess around with it. These are meant to be nice safe(ish) positions that do not require you to sit glued to a monitor all day. If you are new to this section, please read the May 25th update as there was much wisdom in there. Today is the Wednesday before expiration week and, as usual, it is one of the two most active days for us (the other being expiration day itself). Decisions need to be made and we'll be making several moves (see red comments) today and more through Alerts during the week. Keep
