This was another excellent week for OPN. A solid 10% returns and as of Friday close, OPN Jan’08 returns stand at +20%. This excludes my “Gold” holdings which are up sharply over the last week and also excludes speculative gains on MOS and GDX. Additionally, I picked up one Dow component towards the close of the day, after heavy selling tore it apart yesterday. It reached oversold region so I am looking for a bounce on Monday and will close it shortly after opening.
Since I was quite positive of my views of the market this month I modified my portfolio allocation for this month. I am using nearly 60% of my capital in one underlying alone and so far results are pretty darn good. Barring exception, it should result in +20% by Monday as Theta alone is expected to bring nearly 2% per day and will rise further as Jan expiration approaches. Other portfolio is down nearly 6%. A 2% positive move in the underlying will turn it positive. Overall, a fantastic month in difficult times (at least till Monday).
I have partially opened Feb’08 portfolio as well and it’s almost flat despite the market’s free fall. Not bad either!
Have fun trading, profitable trading, OP
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