I went from being happy and optimistic about my short leaning portfolio to pessimism in week 2. I find myself defending my short ES futures contract with more and more SPY long shares added manually. If I didn’t roll down the SPY covered call early after that huge spike down after Apple came out with a warning guidance. The account could’ve absorbed a lot more damage.
In the end, I came out ahead for the week. The volatility came out and it is sinking fast. My cover Put position is almost worthless. The goal for end of week 2 is 0.8% and we are well ahead of that.
The upcoming week I am making a bet that $260 is the top on SPY. Instead of taking a conservative position and sell cover call higher on SPY. I chose to go near the money. Current portfolio is near neutral but still leaning short. Stock market crash is preferred. Go bears!
Warning! This is not a trade recommendation. If you copy my trades – you will lose money.