Live: Thursday, February 20, 2020

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.

The trades:

  • Growth
    • Entry: AEL, for a debit of $33.10 per share.
  • Genetics
    • Entry: REGN, , a $398.84 debit.
  • Value
    • Entry: KBH, a $39.93 debit.
  • Bench
    • 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

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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Based on a work at www.timbovee.com.