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A Mixed bag of results

Published on August 10, 2007

A Mixed bag of results

August 10, 2007

(for details pls visit www.OptionPundit.net)

What a volatile week! Huge ups and huge downs. Russell 2000 (RUT) was the star of the week gaining over 4% for the week. All other were flat to 1% gains.

From OP’s portfolio perspective, this was a mixed week:

  • OPN’s August’07 income portfolio is up +14.97%. 
  • This week, OPN income portfolio rose +3.9% behind solid theta gains.
  • However, OP’s capital declined by almost the same percentage -3.8% points due to three speculative trades BSC, LEH and CFC (i didn’t share alerts on LEH and briefly talked about CFC). The speculative losses were higher than the theta gains on OPN and hence a hit on capital. This was the first weekly hurt after roughly 18 consistent winning weeks.
  • This week also resulted in 3 important lessons for my OPN strategies from learnings on BSC trade that I shall share to OPN subscribers once I re-open it.

Next week is Aug options expiration week so expect volatility. Add sub-prime and credit crisis to this and we are going to have an interesting week ahead. Trade carefully.

Looking forward to starting Sept OPN portfolio soon. 

Profitable trading, OP

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