I just wanted to post a little update on my trading recently: February started off as a great month, with gains in the indices practically every day! In the third week of Feb, I started adding a few short positions, mostly in some parabolic stocks, and when the big drop in the market happened on Feb 22nd, I was well positioned, so I actually made money on that day! Some of my shorts were TA, KV/A, SHZ and TTHI. I also got short the FAZ yesterday, Feb 24th, after 3 down days in a row in the market. I knew we were going to bounce, at least a little. Another trade that I have been building into, is a short in the VXX. The decay on this ETF is spectacular, to the tune of 40-70% per year, so if I hold it short forever, I can make 40-70% per year! Anyway, I added nearly 40% of my portfolio to this short position, and I was underwater for a while, but it is now starting to pay off. My first target is $27, and here's the daily chart:
I also added a position in AAPL yesterday, as it tested the 50day MA for the third time. I liked the setup since my stop would have been very close, and it would have been easy to know I was wrong. A solid breakdown under the 50d and I was out. I got into this position via the sale of 1 March 340 Put. I liked this better than a call purchase because the volatility premium in the option market was much higher than normal.
I still have a few positions open, but here are my returns for the year so far: