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Trade Findings and Adjustments 03-10-2022

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Trade Findings and Adjustments 03-10-2022

Why was yesterday the day:

Because it was an up day – One day a trend doesn’t make

I believe you were guessing for the rebound

What are you rules for Long Puts – CAN’T they change all the time

What do long puts protect?

Stock YES but they also can protect a portfolio, protect thru earnings, protect during downturns, protect a leap long call portfolio

Here at HI we use long puts for earnings (two weeks before and 4 week after= 80%+ a stock could lose 10% or more)

We also add long puts during index technical crossovers

Profits of long puts we always try to convert into more stock ownership

Take a profit and add shares at what is expected to be support and/or a potential bottom

Take a NET profit if long puts are protective puts with stock ownership

USE profits for more shares of stock = Dollar cost average without having to go find more money

DON”T think you can time the market


As we reset puts form Feb 25 options expiration we are now back to making 60-90% of the downward movement

We will not take puts off until after the March 16th FOMC rate decision = +0.25 increase

Opportunities add more long puts as individual stocks break long term support levels

Looking a little farther adding more shares of stock with all the profits we’ve been booking Since Jan

We have added BAC, UAA, F, FB

We still have cash on the sidelines for AAPL, BA, BAC, BIDU, DIS, F, UAA, V, JPM,

Our long puts are usually ATM or slightly ITM = Delta that with two strikes of movement we can make up at least 70% of the downside movement

YES there are times when the puts are making so much up on the way down we keep them until the day of expiration

YES I think the stock market is going to over-react to a rate hike EVEN though we have known for two plus years that it was needed to tame inflation

Stay hedged is out theme for the first quarter

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