$100,000 Hedged Portflio Update
We didn’t do a wrap-up last week as I instead wrote a long, Members Only post (only Part 1 too) on " Setting Up A $100,000 Hedged Portfolio " concentrating on a virtual $20,000 allocation in the financials for our first sector . We’re going to do more of these on the weekends as people find them useful and also because, although they are very popular, I do get tired of just reviewing what we did for the past 5 trading days every week.  So maybe a little of both today but I aim to keep this short  (as I usually do, but it never works out) so we can do another post on earnings plays tomorrow . How is our new sample portfolio looking after a week?  Well let’s see :  500 UYG at $3.48, selling 5 May $3 calls for .72 and 5 May $3 puts for .28, net $2.48/2.74 UYG now $3.79, May put and call combo now $1.12 = net $2.67 ($95 profit on $1,240 = 7.7%) Selling 2 FAS $7.50 puts for .45 naked FAS closed at $9.40 so 100% profit of $90 500 C at $3.04, selling May $3 puts and calls for $1.11, net $1.93/2.47 C now $3.65, May $3 put and call combo is $1.19 = net $2.46 ($265 profit on $965 = 27.5%) Selling 2 IYF May $36 puts for $2 naked IYF closed at $40.26, May $36 puts $1.20 ($160 profit on $400 =40%) Selling 2 JPM May $29 puts for $1.95 naked JPM closed at $33.26, Mat $29 puts $1.17 ($156 profit on $390 = 40%) Selling 7 FAZ May $10 puts for $2.40 naked (adjusted to reflect Monday’s gap down open) May $10 puts are now $2.67 so a loss of $189 (-11.3%).  Both our July and Oct escape rolls are still intact so no worries here anyway (this is a hedge to the others) 5 FAZ Oct $12.50 calls for $4 (adjusted), selling 5 May $21s for $1.05, net $2.95 . The Oct $12.50s are now $3.29, May $21s are now .45 so net $2.85, a loss of $50 (3.4%) So far so good!  The FAZ hedges are holding up nicely while all of our upside plays were winners.  Our 3 April put sales are expired $90 in profits so risk off the table and cash put back to work and May Put sales look safe enough at the moment, up $316, while the May option plays are up $360 against a $239 loss on the hedges.  Overall, we put less than $1,500 of capital to work (there were, of course, some margin requirements - see original post) to make $437 in a week.  While…
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