Markets…the day after…


In last evening’s missive I demonstrated how my portfolio customarily performs on down days.  This screen shot I’m providing is in real time and demonstrates how I perform on large up days.  Obviously I don’t track the upside of any benchmark index. That’s alright by me.  I’m more concerned about slow growth of capital and preservation of that capital.  With only a few years until early  retirement I have to do all I can to mitigate downside risk and to “de-volatize “ the portfolio.

This market is an active trader’s dream and I trade actively while still holding a few core investment positions, though these get shuffled around a bit as market conditions warrant.  I need to reiterate that an investor should look for opportunities in the markets, wherever they may be and whatever instrument offers the best risk/reward.  For me it’s always options positions in the form of credit spreads and naked put selling.  These styles of trading are far less risk than you may imagine.  As long as you have cash in the account to cover the short positions, the risks are minimized.  Look for opportunities wherever they lurk and exploit the market volatility to your advantage while at the same time limiting your downside.


Leave a Reply