Wow it's already been 3 weeks since we started our new $100K Virtual Portfolio.
And what a wild 3 weeks it's been with the Dow rising 400 points so it's kind of a shame that we didn't go gung-ho bullish but the idea was to play conservative and keep cash on the side, waiting to see how things played out before committing. Sadly, we are STILL waiting!
Unfortunately, our FAZ hedged blew us out, taking a huge loss and I decided to stick with it as I'm fairly sure the markets will be turning down but we'll have to wait until next week to see how that plays out - meanwhile we can make an adjustment to it.
Since we have a lot of buying power and 30 FAZ Apr $15s, we're going to take advantage of the opportunity to both roll ourselves lower and to make a quick sale of the March $14 calls for .25. and rolling our 30 Apr $15 calls to 30 Apr $14 calls for .30. So we are buying $1 in position for .25 of someone else's money and .05 of our own - never a bad idea. To the upside, if FAZ jumps past $14 by tomorrow, we will be happy to roll them to April or even July callers and put ourselves back into a vertical, which was the original protection. We are also looking to sell 20 July $12 puts for $1.10.
Unfortunately, the WSS platform does not handle rolls so I will be putting in the legs one at a time, which is a very bad way to try to make adjustments as you need all the legs to work together! That's why a good trading platform is critical for options trading. Anyway, we'll do the best we can and see how the fills go on WSS.
