Back on track!
In last week's $109,729 Virtual Portfolio Update, from July 8th, we made a very well-timed bottom call and removed our protective FAZ puts, added some stock and took out some callers and the next morning was a perfect bottom for us, giving us great prices across the board for our moves. We have not yet found a lot of new plays, perhaps I should have designated some of the many plays we picked up during last week's sell-off for this virtual portfolio but, frankly, I forgot at the time - so we technically still have the same old things. I will make an effort to find some plays this week that fit here.
I said last week that the first two weeks after you sell options are usually the worst and the rising VIX had boosted the premiums of the puts and calls we sold and that none of that matters until expiration day and that we were mainly on target despite showing unrealized losses of $3,890. Once again we demonstrate the glory of not panicing as our unrealized losses have now fallen to $1,002 already and we even transferred a nice dividend payment (LYG) to cash! 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.
