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Saturday, October 18, 2014

Weekend Portfolio Analysis (October 18, 2014)

There's a colleague at work who is a terrible trader (Sorry John! you said so yourself. You know how much I love you). Anyways, he is a very smart guy and has been trading for 2 decades. He obviously knows way more than I will ever know about the markets. He's able to articulate concepts really well and knows every single options strategy you can think of. However,..........he's pretty good at losing money little by little. Not huge draw-downs, but consistent frequent small losses. He realized that will always be the case. Yet, he still trades! He does it for fun, to satisfy his addiction. He just trades a very small amount that doesn't represent anything to his family at this point in his life, but he admits he just can't get away from it. I don't blame him! I don't blame him at all. You know why? Because of weeks like this one we just had! Even if I lose money, provided it is not a serious draw-down, it is great to live through this. Few things make you feel alive as the markets. It's great to be in touch with your raw feelings, in constant conflict between greed and fear and it's great entertainment value to see everybody panicking and talking about the markets.

This was a very exciting week. The S&P500 started the week at 1905.65 and closed at 1886.76. Just a 1% decline! Did you know it was just a 1% decline after all the panic we experienced? Only 1% after all.

Friday, October 17, 2014

Credit Put Spread roll up for profit and new credit received

Today I closed the SPX 1595/1600 Credit Put spread for 0.15 debit. This spread was entered 2 days ago as an adjustment. Here are the details of that entry.

Wednesday, October 15, 2014

November 2014, SPX Put spread adjustment

Today I made an adjustment to the November SPX 1755/1760 Credit Put spread in the morning.

Tuesday, October 14, 2014

November 2014, RUT Credit Call spread

The market's not overbought. However, today I sold a Credit Call spread on RUT

Saturday, October 11, 2014

Weekend Portfolio Analysis (October 11, 2014)

The S&P500 went from 1970.01 down to 1906.13 for a 3.24% decline. That's pretty significant and unusual.

RUT was even weaker and went from 1107.36 to  1053.32. A 4.88% loss. So weak that I had to adjust my 1020/1030 October Put spread. In my previous Weekend Portfolio Analysis I said "All three positions look pretty good to me and they shouldn't be a problem in the next few days". Which is right. They were looking good, and unlikely to be in trouble. A 4.88% correction in the span of a week is an unlikely event. Adjusting sucks. But it's part of the game. Perhaps the most crucial one.

Friday, October 10, 2014

October RUT Iron Condor Put side adjustment

Well, the good luck came to an end after some months of peaceful trading without need for adjustments.
This time it was the Put side of the October RUT 1020/1030/1230/1240 Iron Condor as RUT has just been lifeless in the last few sessions.

Monday, October 6, 2014

Investments in Potash (POT.TO) and Finning International (FTT.TO)

Today I invested almost 3K in my Tax Free Savings Account (TFSA). I'm doing it aggressively lately as I'm trying to max out the contribution room available in that account (equivalent to a Roth IRA in the US). Starting this year I had $31,332.58 of room. I had already started investing in October 2013 but using an Individual Taxable account as Questrade doesn't open TFSA accounts for non-Canadian citizens. But I recently became a Canadian citizen, opened my TFSA account with Questrade and continued my investing activity prioritizing this account where all the growth you get is tax free.