First let’s get some bookkeeping out of the way. I closed my long $TNA position on Friday, along with my short $QID 35 August and $VXX 18 August calls. All three positions were posted nearly real time inside of the 12631 trading service chat room. The positions were opened on June 24 and returned 13.3%, 42.19% and 44.95% respectively. I finished the day up 1.1%, the week up 2.8%, the month up 3.6% and the quarter up 5.0%.
All three months of the quarter were in the black, but the first two were relatively subdued. I finally cleaned up the disastrous $TVIX trade. The ticker is now on my do not trade list. The product is very broken and does not have options. I have no one to blame but my self for the trade; I was not monitoring it properly when the price decoupled from its NAV. Three other trades are depressing my performance this quarter, $PCX, $TBT, and $UNG. I’m still long term positive on both $TBT and $UNG and writing premium against them. $PCX on the other hand is dead to me. I’m writing what I can against it, but I doubt it will ever be a winner. I’ve reduced my net cost to 4.21 from 5.12, and the position now is about 1% of the total portfolio.
I’m going into the week about as flat as I ever am, with a cash position of over 20%. I’ve got capital freed up, and I’ll be ready for whatever happens in the overnight session and tomorrow. I don’t see much edge one way or the other right now, so I’m happy to be flat. Good luck trading.
3 Responses to In Defense of Flatness
I’d like to see an official closed Oversold so I can ditch that “disastrous” TZA trade myself.
Nice insight Yogi!
Yes, I will load up the boat with $TNA the next time we hit OS.
Great post Yogi dude! The fact that you throw your returns out there just earned you much respect with the Pope. I hereby grant you 1 thousand of my iBC notes. They are better than money, they are IOUs.