This article appeared first on enhanced-investing.com(April 9, 2019) ------------------------------------------------------------------------------------------------------
When you are short a cash secured Put, because you would like to own
the stock at a cheaper price, it often happens that once the stock
begins to fall, and continues to do so beyond your strike price, you
suddenly feel like “well, I don’t know….now I don’t want to own it so
much anymore. Look at all the negativity around the name!”
It-always-happens. Business we were a short time ago convinced we
would like owning at cheaper prices are suddenly disliked by analysts
and the crowd of individual investors. Our herd mentally then tricks us
into fear.
This article appeared first on enhanced-investing.com(on April 3, 2019) ------------------------------------------------------------------------------------------------------
March brought a $481.07 realized gain for the account after
commissions ($25,000 account at Tastyworks, with 2:1 margin). A total
of 16 short Puts were closed, all of them at a profit.
So far in the year, we have closed 54 Short Put positions. 53 winners
vs 1 loser. The total realized gain made in the year is now +$1,624.31.
This represents a +6.5% growth for Q1. If we project that over an
entire year, we are on pace to a +26% year, which is not bad. Of
course, chances are, not every quarter will be like this one. Still,
I’m happy with the results so far, considering that we have experienced
no equity exposure at all. All the gains so far are based on short
Puts only and no stock position has been entered
Of course, the market is up much more than 6.5% Year to Date. It is
expected that a short Put strategy will make less money in periods of
strong market rallies, but then again the current path of the market is
not sustainable for an entire year.
Looking at April, it seems the first assignment of the year will
finally happen. In this case on CVS. We also have short WBA Puts that
are in the money. All other positions (8) look very healthy. April will
also mark the beginning of a new earnings season. So, volatility will be
elevated for selected names and that may very well result in greater
gains in the near future.
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Go to the bottom of this page in order to see the Legal Stuff
Quick review of what the LT Trend Sniper robot did during Q1 of 2019.
But before that, a quick glance at the Barclays Currency Traders Index shows us the benchmark performance year to date is at +0.60%
