March 2 #Fuzzy Land: Self Assignment
Hi Bistro Friends! I did a #SelfAssignment on MSFT today, converting naked puts into an #AtomicFuzzy. I really like selling 3-4DTE naked puts on MSFT on dips. Been doing it for 18 months it seems, with assignment always assumed but never realized. Today finally was the first chance for assignment. So I chose to do self-assignment into an #atomicfuzzy.
Original trade: STO MSFT Mar 2 94 puts for .72 closed for 1.90, loss: $1118
Atomic Fuzzy: BTO MSFT Apr 92.5/92.5/90 x10 w/ 95/97.5 Call spread for -.80 x24
A move to 94 can get me back to even with a fraction of the risk vs. taking stock assignment. There’s a hockey-stick graph above that for gains.
Atomics have become a big focus for me. I partitioned funds last week for a “hedge fund” type approach to them. Timing may be off a bit…but serious testing is in progress. I haven’t said much about this, but I think there is a ton of edge in these trades….just working on proving it out now. Even though they have nice risk control, they still need a rising market for performance. So, just laying in wait now for that to happen. I was able to take a lot of profits on previous Atomics last week. The CLOSED fuzzy profit for the quarter is now $32,994. But, I’m under water on my newest fuzzies. I was able to use #FuzzyBear trades this week to gain a few k’s.
I had a bit of an epiphany this week regarding a previous post I did that showed we need 3-of-5 one standard deviation up moves before a rally can be trusted. I’ve been watching every single day for even a 1 standard deviation up move and we haven’t had it. I realized that the huge SD down moves tamp down any further SD’s until they age off the averaging. So there’s a coincidental relationship between what I thought was 3 1-SD up moves and the big SD down moves aging off. What I thought was a wait for 3 1SD up moves was probably actually a wait for the big SD to age off, which gives it time to retest lows while waiting. Anyway….if any of this makes sense to you, welcome to my brain. The big SD down moves age off my system in the next 2 trading days. Then there should be more realistic SD data to evaluate.
Have a great weekend everyone!