Captain’s Log 2019-01-30

Trade log

Happy to announce today that “Pure Theta Fund” account have reached a new milestone. We finally got the account approved for Portfolio Margin. We were basically maxed out in margin before today. I got right to work and added more positions to get this account back on track. It’s going to be a lot easier to reach for 20% goal this year.

With Portfolio Margin, I have more confidence with crazy trades like today’s earning trade on Tesla (TSLA). I don’t have to worry about the size of the margin required. I can be more wasteful. I can go so far out like 200/400 strangles.

The closing price on TLSA was around $308. We will profit if TSLA stay below $400 and above $200. The volatility will collapse tomorrow and we can take profit right away. But it’s looking like TSLA is staying right where it is. I will probably keep the trade open until expiration if it stays right here. Again, I don’t have to worry about closing out to have more margin available for new trades. More saving on trade transaction.

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