Slow and steady wins the race!
In last week's $107,546 Virtual Portfolio Update, we hit all of our targets almost on the nose and were able to follow through with our rolling plans. Expiring contracts allowed to finally cash in some of our virtual profits but now we have some virtual losses pending as we always do early in the expiration period as the new options we sold still have most of their premiums. Still, it's been an excellent 2 months and we are way ahead of goal and still averaging $1,000 a week in gains.
Last week I had said: "don't be alarmed that we are making slow progress in our header" and you can see how it jumps on these expiration weeks. 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 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. This week we have some work to do so no fortune-cookie notes today! Keep in mind this is a virtual portfolio and doesn't have to be followed exactly, the main idea is to teach proper hedging techniques and demonstrate that you can make a nice return without putting yourself at constant, daily risk. As this is a rollover week - it should be noted that our new moves (in red) can be treated as new entries by someone starting from scratch and, as always, feel free to check with me in chat if you are not sure.
