Sunday, February 3, 2013

Week 89 update



EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.


Investing and Trading Account: $7,136.19
Total Return: -0.19%
Est Monthly Income: $11.48 / month

Trading: $3,472.00
Total Return: -2.2%
1 SPY 152 May PUT: -13.85%
Cash: $2,987

Investing: $3,664.19
Total Return: 1.78%
Stock
     AFL: +0.21%
     HAS: +2.31%
     SPLS: +12.49%
     STX: +10.54%
Energy
     WHZ: +4.4%
Gold
     IAU: -0.25%
Bonds
     BLV: -3.08%
     JNK: -1.12%
     PCY: -2.5%
Cash: $1,190.15

ETF Account: $7,155.49
Total Return: -0.17%
Est Monthly Income: $14.15
US Stock
     SPY:  +1.99%
     XLV: +2.54%
     VNQ: +0.82%
International Stock
     EWZ: 0.42%%
     PXR: 0.34%
Gold
     IAU: -1.04%
Bonds
     BLV: -3.01%
     JNK: -1.48%
     PCY: -2.37%
Cash
     Cash: $2,013.44

Permanent Portfolio: $7,140.16
Total Return: -0.14%
Est Monthly Withdraw Rate (4% rule): $21.68
Listed by weighting
     SPY: 25.42%
     GLD: 24.87%
     TLT: 24.27%
     Cash: 25.43%

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

4 comments:

  1. I had a question about the risk management of the SPY Put trade. The SPY Put was purchased for $563, if the market keeps rallying and you lose on the trade, that would be a 16.2% loss to the trading account, or a 7.9% loss to the trading and investing account as a whole. Can you comment on your risk management and tolerance regarding this trade? It seems like a very large risk to take relative to the size of the account.

    Thanks!

    ReplyDelete
    Replies
    1. Good observation and I'll probably have a separate entry as this being one of the first trades I have yet to go over my thoughts on managing it.

      If things start going up to say 153 I'll probably bail. This trade was part sequestration, part resistance of SPY 150, and part "we-havent-had-a-pullback-in-awhile". I suppose that is a lot less technical then Aileron LOL.
      But we've been stuck for 2 weeks now between 149-151 going nowhere after a big January rise.

      Delete
  2. I had not really considered buying options before because I was overly worried about theta decay and a drop in volatility, but after seeing you put it on and thinking about it, I like it more. What I like about it is the more the trade goes in your favor, the more delta, the more it goes against you, the less delta. It creates an exponential curve of value growth as the trade goes more and more in your favor, and just the opposite as it goes against you. I will definitely consider these types of trades more.

    ReplyDelete
    Replies
    1. "the more the trade goes in your favor, the more delta, the more it goes against you, the less delta. It creates an exponential curve of value growth as the trade goes more and more in your favor, and just the opposite as it goes against you."
      EXACTLY. Losing money in a trade is rough but at least this helps out. Theta decay is a concern but that is why I got a May contract. Cost more but whenever I go to sell I should keep more then if I went with a March contract.

      Delete