NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
About the aforementioned leveraged semiconductor ETF that I bought in mid October, as a hedge I immediately wrote covered Feb 2015 calls on some of the shares, with strike prices of $90 and $95, pocketing premiums of $11 and $10. It was done a bit too early, and I left $20+ per share on the table. But as they say, nobody goes broke taking profits. The semiconductor sector is the most volatile of the volatile tech stocks, then when you go 3X leverage, oh la la !
Anyway, after I sold the unhedged shares for $110.40 yesterday, the price slumped and is now at $108. For the shares that I still hold, I bought at an average price of $84.37, and as long as the price stays above $73.87, I am still in the green. But of course, it can drop through that price too.
What to do now? I just sold off another ETF, this one a 3X leveraged small cap. For a commitment of $21K, I netted $3091 including some option premiums. This is not that great, as this trade started 5 months ago, before the correction.
And then, I still have several hundred shares of 3X leveraged emerging market ETF, which I bought at $26.50 as mentioned in an earlier post. I was in the green a few days ago, but now slightly in the red (price at $25.92).
So, I made a bit of money with these trades, but am I happy? Heck no. I still lost beaucoup money in my long-term holdings, and need around $100K to get back to my all-time high. Well, maybe less if I consider what I have withdrawn and spent.
Anyway, after I sold the unhedged shares for $110.40 yesterday, the price slumped and is now at $108. For the shares that I still hold, I bought at an average price of $84.37, and as long as the price stays above $73.87, I am still in the green. But of course, it can drop through that price too.
What to do now? I just sold off another ETF, this one a 3X leveraged small cap. For a commitment of $21K, I netted $3091 including some option premiums. This is not that great, as this trade started 5 months ago, before the correction.
And then, I still have several hundred shares of 3X leveraged emerging market ETF, which I bought at $26.50 as mentioned in an earlier post. I was in the green a few days ago, but now slightly in the red (price at $25.92).
So, I made a bit of money with these trades, but am I happy? Heck no. I still lost beaucoup money in my long-term holdings, and need around $100K to get back to my all-time high. Well, maybe less if I consider what I have withdrawn and spent.