Saturday, November 17, 2018

The joy of being short ... at the right time! (Your $200,000 account: up $18K!)

The down move came a week late, but what a move:

I held on to my two short futures contracts and sold 4 2670 puts against it for just the couple of days ending Friday. I have two remaining that expire next Friday the 23rd.

I've been enamored of the idea of selling puts against a short position, sometimes to my detriment. But despite the prospect of a typical Santa Claus Rally,


I think there's enough weirdness around with Brexit


... and of course the ongoing shenanigans in Washington:


That it seems a lot more likely to me that we'll get a more nearly flat market ... which will be perfect for what I'm planning:

(1) Continuing to sell 2 (at least!) puts against my 2 short /ES futures contracts ... occasionally I may sell an extra couple, as I did last week for a couple of days ...

(2) NDX: 4-day Iron Condor, Monday to Friday, short strikes at the .08 delta (i.e. waay out wide) and at least 50 or 60 point wide wings.

(3) A mix of commodity futures, including the Golden Butterfly since I finally remembered the adjustment of selling another one! This worked well (I made $500 in a couple of weeks) the last time I tried this.

Your $200,000 account was up about $18000 last week ... Wahoo!

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