Saturday, September 29, 2018

Widely diversified bunch of trades show great week (+6.8%) though equities underperform!

Here's a screenshot of my account at the end of the week:
Notice the green on the rightmost column: that's profit or loss since the opening of the trade. (I was wrong about the /ZN trade winning at the end of last week; that was a pricing anomaly. But it's doing well.)

These are all futures butterfly spreads, with a diverse group of currencies (British Pound, Euro, Japanese Yen) and "soft commodities" (soybeans and wheat and corn) and crude oil. None of these have moved very much over the past week, just what we want for these neutral trades. And even the one currently showing a loss is just an artifact of pricing weirdness during the end of the trading day. This should be green when the market reopens tomorrow afternoon, too.

This is my little account that I've had to raid too much the past few months for some real estate and other personal stuff that's going on. But another account is more nearly representative of your virtual $200,000 account. It went from $21537 to $23009 this past week ... that's $15560 in your account!

Here's that account in detail:

This account has the gold futures butterfly with short strikes at 1200 & showing a nice profit. But notice a few more red numbers over to the right ... the Amazon trade is a 21-day iron condor, now with 20 of those days left. It's typical for an iron condor to be showing a small loss for a while until its constituent options start to expire. Even though AMZN has been on a tear upward again lately, I don't think it will get anywhere near the short strike of $2090. So this one should pay the 50 percent of credit we're looking for.

CMG (Chipotle) is a butterfly trade that's right on the edge of getting back to profitability. But the worst one is another butterfly, TSLA.

The ramifications of the "funding secured of TSLA sale at $420/share is assured" tweet from last month are coming due ... Elon Musk was first offered a deal by the SEC that he turned down ... the SEC then brought the hammer down.

But today Elon blinked and made a deal to step down as chairman so he could stay CEO. Thus Tesla shares should recover nicely on Monday ... I think!

Now enjoy this summer cornfield picture and help visualize my corn trades flip into the green ... more next week!





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