Hedging Review

No new trades this week.

music selection: “Blinded By The Light” — Manfred Mann’s Earth Band

weigh-in:  208.8 +1.8

One saving grace that has kept my portfolio from completely cratering has been the existence of long dated put options I’ve been opening for about 18 months as a hedge. I have closed five of these hedges for 7,129 in profits. I have eleven more hedges still open. Below are the remaining hedges and their cash value as of this writing with unrealized P&L after the dash.

GM: 3,670 – 2,600

HCA: 5,245 – 3,656

HTZ: 2,520 – 1,640

LYFT: 2,870 – 1,950

MCK: 800 – (200)

PTON: 1,020 – (300)

SC: 1,900 – 1,100

T: 1,110 – 189

THC: 1,595 – 850

UBER: 1,736 – 552

RAD: 1,214 – 204

These hedges have a total cash value (if liquidated) of 23,680 and currently sport 12,241 in unrealized capital gains.  I’m watching the markets to see if a bottom appears to be in. If so, I will likely cash all these out. Except for covered calls on my NLY position, there will not likely be any other trades until Vol settles down.

Good news, is I think, on the horizon for the markets. New York is expected to hit peak medical demand and deaths on the 9th. Stay at home will likely be recommended for another 30 days. Normalcy could begin returning to the markets my mid-May.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.