Trade Findings and Adjustments 05-23-2019
Alright, today the market is getting killed by being down 1.52% on the S&P 500 so let’s work on getting a perspective on your account today using AAPL, BIDU, BA, UAA and V stock positions
Are you getting killed with a 1.52% drop
I’m down $3000 today BUT is that a full 1.52% down?
NO it is about 1% DOESN’T that still mean you have 99% of your portfolio still available to you?
It’s not about having 99% or $297,000 it’s about losing $3000
YOU should be in a savings account or an annuity based on your perspective or risk tolerance. The market is NOT a place for you to be
PROTECTION is paramount
BA first and I will admit I do NOT have long put protection on BA since beginning of last week
LAST week when we sold protection and bought in at $344.67 we let BA run and there was no question about having long put protection on
NOW trading at $347.07 and was down to 342 even but I see we are higher on new shares added with profits from long puts and 300 shares higher than where we were a week and a half ago at the $344.67 price that we bought in again
BUT shouldn’t you always have long put protection on
Do we buy protection for the year? Going to Jun 20 will cost us 42.20 or 12.2% of out TIC
Because we have four earnings and want to protect profits on a quarterly basis 17.40 now we have a cost of roughly $70 or 20% of the TIC
Are there time when we let the stock run? YES, why put bearish positions on bullish stock why but bullish on bearish stock
MAKE your best darn educated decision and then learn to stick with that decision over the time frame you were looking at.