8/23:
I haven’t closed anything out so I haven’t taken any losses, much less “crushing” ones. In fact, while I’m currently drawn down about $40k, it’s really only $30k because of my hedge, dividends, and previously closed hedge positions.
When this trade gets closed, it will likely be in the low to mid 5 figure range of profit.
Maybe you’re confused by how I’m keeping track of everything.
Let me break it down for you:
SPY -$40,470.00 <— this is the current drawdown of the open position
hedge $4,688.97 <—- this is the current gain/loss of the open hedge
Net for this trade:
-$35,781.03 (unrealized) <— this is the sum of the two above
+$1,223.60 (realized) <— this is locked in profits from part of the hedge I closed before
+$2,931.69 (realized) <— this is locked in profits from part of the hedge I closed before
+$1,129.72 (dividend) <— this is locked in profits from the SPY dividend I was paid
————————
-$30,496.02 <— this is the current P/L of the open position. It is the sum of the SPY position + the hedge + all the locked in gains above. It is my current draw down on the position.