8/30:
SPY -$10,602.00
hedge $2,284.32
Net for this trade:
-$8,317.68 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
————————
-$3,032.67
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.
8/18:
SPY -$51,471.00
hedge $5,615.64
Net for this trade
-$45,855.36 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
————————
-$40,570.35
8/16:
SPY: -$22,515.00
hedge $3,469.05
Net for this trade:
-$19,045.95 (unrealized)
$1,223.60 (realized)
$2,931.69 (realized)
$1,129.72 (dividend)
————————
-$13,760.94
8/12:
SPY -$30,894.00
hedge $4,149.39
Net for this trade
-$26,744.61 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
————————
-$21,459.60
8/11:
SPY: -$35,397.00
hedge: $4,489.56
Net for this trade
-$30,907.44 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
————————
-$25,622.43
8/10
SPY: -$64,125
hedge: $7,070.16
Net for this trade:
-$57,054.84 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
——————–
-$51,769.83
Pretty much exactly where we were on 8/8.
8/9:
SPY: -$34,542
hedge: $4,618.59
Net for this trade:
-$29,923.41 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
——————–
-$24,638.40
Drawdown from yesterday reduced by over 50%.
If you remember my post on August 5, 2011, I said I was going to buy more SPY if price hit $115.
That just happened
Bought 2,500 shares at $115.
New SPY position: 5,700 shares @ $123.54.
I’m considering the possibility of future positions being purchased in SSO in order to use margin without really using margin.
8/8:
SPY: -$64,296
hedge: $7,304.76
Net for this trade:
-$56991.24(unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
——————–
-$51,706.23
I really wonder how much lower we’re going to go.
I don’t have enough account equity left to be buying more SPY without using margin if price goes down further, so I think I will use SSO instead.
Patience is key. While everyone is is losing money trying to predict short term direction, I am just waiting.
Does it suck to be down $51k? Yeah. That’s more money than I made in a year at my first corporate job out of college. It sucks when I think to myself “hey, had I not entered this trade, I could go buy a car and still have more money than I do right now.” But it’s about patience. I know SPY will eventually go back up, and when it does, I will make a lot of money.
“Be greedy when others are fearful.” Everyone is freaking out right now. I am loading up.
Next order is if SPY hits 115.
8/5:
SPY: -$32,416
hedge: $3,903.06
Net for this trade:
-$28,512.94 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)
——————–
-$23,227.93