Wednesday
DOW down 82.99
S&P 500 down 6.49
Portfolio down $1,407.96
One trade today. Sold short MS May 09 $20 puts (MSQD) for $.75... On the hook to buy MS @ $20. Not sure if its going to get there... We will see (spoiler alert: I update this position later on in this post)
Thursday
DOW up 70.49
S&P 500 up 8.33
Portfolio up $1,105.05
A couple of trades today. I bought 500 shares of Regions Financial (RF) @ $6 and immediately sold a covered call May 09 $6 for $.80. The thought here is that I protect a little of my downside by taking in cash right now. Here is the math.
- Buy 500 shares @ $6 - ($3,000) Outflow
- Sell 5 contract calls @ $.80 - $400 Inflow
- Total - ($2,600) Outflow
- 500 shares @ $5.20
- On the hook to sell @ $6, if we get there, potential profit of $400 or 15.38% (not including commissions)
Update on yesterday's trade. MS is taking a dive. I'm not at a loss here until MS gets to 19.25 (its at $21.96). I don't really care how much the call I'm short goes up to because its not going to hurt me but for your own enjoyment, its at $1.15 :( .
I'm getting pretty deep into my margin(borrowed money) and I am starting to get a little uncomfortable. I kind of want this to hit and I want to sell MS for $30 to open up some breathing room and give me some "dry powder" for other trades.
I'm looking for S if it breaks $4.30ish and I'm looking to go short MET, again....
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