Looking at the new structure of SVXY, it will take decades for it to get back to 100 (just my opinion) so rather than sitting on dead money, I closed out all my SVXY stock from 12.34-12.40 at large losses no longer just a paper loss. But that is so I can use what’s left to make some money back. It will take about 2-4 years to get back to where I was if I can avg. 50% returns, slightly less if I can do better. Unfortunately one of the disadvantages of going back to small accounts is you lose the leverage, especially on non-margin accounts so I am having to be more conservative. I still have one contract of SVXY at 50 for Jan 2019 that has not been assigned. Hopefully they will wait…..it was easy money while it lasted but I think we all have a better understanding of the risks in SVXY now!
At least I only trashed 2.5 accounts this time, in 2015 it was my main trading account so at least not as bad as then on a percentage basis. On a dollar basis it was more 😦 though.
With that in mind and some of these orders are still working but should go through.
1. FAS 68 CC this week for 67.15
2 FAS 66 CC for next week at 65.11
3. WDC 87 CC for next week for 86.09
4 LNG CC (assigned over the weekend at 55.02 cost basis) 54 CC at 0.4 cost basis now 54.65
$765 in premium for 12 days, far away from what it used to be but all of these have a little downside protection in them and should not go to zero like SVXY could. Bringing some money in every week is better than a loss or having it just sit there.
Will add some long term #fuzzy in a few weeks as they can have 100% returns on capital over a year.