9:45 a.m. New York time
Yesterday’s short iron condor exits cleared my accounts of the FEB series of options positions. My options contracts now expire on March 20. Their next milestone comes on February 28, which is 21 days before expiration. On that day I shall exit all profitable positions.
The unprofitable positions is the problem, as always. Do I get rid of them immediately? Do I hang on to them until expiration week, in the hope that they will improve? I’ve tried both strategies for good and bad results. Each position, after all, is sui generis, and my best strategy is, I would think, to treat each losing position separately, without an overarching rule.
I’ll begin to buy the next series of options, APR, on March 3.
Having freed up cash with the sale of FEBs, I entered several new share positions in today’s focus portfolios, Growth and Genetics. The Growth symbol also appears on the Momentum Portfolio. I exited a former Value Portfolio position now on the Bench and used those funds to add a position to Value.
- Entry: AEL, for a debit of $33.10 per share.
- Entry: REGN, , a $398.84 debit.
- Entry: KBH, a $39.93 debit.
- Exit: RUSHA (formerly Value) for a credit of $43.17 per share, down $0.49 from the entry price. The loss was 1.1% over 27 days for a -15% annual rate.
- Transfer: GIII back to Value
By Tim Bovee, Portland, Oregon, February 20, 2020