Closed the last of my lophirs this week: ADBE, AMZN, GOOGL, ISRG, JNJ, MMM, PG. Loss against max risk ranged from 20% to 80%. It’s a good thing I made money in AMZN earlier this year or I would have been really unhappy.
42% loss against max risk.
Updated from 60% to 42%. Reported inaccurately the first time.:-)
Although it pains me, I must step back from calling lophirs a safe trade. The max risk against potential reward is simply too high when volatility is elevated. So back to MamaCash basics for me.
Don’t risk more than 1% of account value on any single trade.
Map trades to my market mindset of long, choppy, or short. This year has really been a chop fest. Volatility tells it all.
NEVER assume that the markets can’t or won’t spike or drop to blow out your account.
I will survive but not especially proud of taking a big hit on my accounts after securing great profits for the year. I hope the rest of you are not learning the same lessons I am.:-) I will post when I finally close the trades I put on a couple weeks ago but for now, active management continues.
Closed WMT and UNH lophirs for profit.
Closed half of SSO lophirs for loss.
Adjusted ADBE, AMZN, DIA, GOOGL, ISRG, MSFT, NFLX, and remaining SSO lophirs with call credit spreads and long puts. Adjustment goal is to extend range to the downside and neutralize rising deltas.
It’s been a tough week for my positions. Down but not out.:-)
Rather than posting closing trades throughout the day, I plan to post a daily summary. I’ll continue to post opening trades individually to ensure that they’re timely in case anyone wants to follow.
BA. Strong stock in strong sector strat. BTO Oct26 lophir @ -2.61. STC @ -.80 for 70% profit. Days in trade 12
AAPL. Pre-ER strat. BTO Oct26 supercharger @ 7.93. STC @ 9.40 for 16% profit. Days in trade 8
NFLX. Pre-ER strat. BTO Oct19 lophir @ -8.31. STC @ -2.50 for 70% profit. Days in trade 13
Note: Profit on lophirs is based on credit received, not max risk. I’m willing to report based on max risk if you all prefer that.