So, my portfolio was looking like this today - I had on 3 long Call positions and just took a loss yesterday in MRK. Since the market is so goofy, it could really go anywhere. If it goes up then my 3 long Calls will make me profit. However, if it keeps going down then I'm going to take further losses to my account.
I've decided to hedge my portfolio, of sorts, by getting into some long Put positions. At least this way if the market does continue lower, then I'll make some profit on these Put positions to offset the losses in my Call positions.
I decided to get long into a bearish position on MYL today. Here's the chart:
As you can see MYL has been going lower recently. And today was the 3rd day closing below the old support/new resistance level. The target is the next level of support below and the stop is just above where the bears came in this last time to drive down price. If you look closely, you'll see the purple 50 day moving average above this stock, and the 200 day moving average below the stock, near the next level of support below. There's a good probability that this stock will trade down to that support level.
I bought an Oct 23 Put for $1.90. So, I've got tons of time. We'll see what happens.
Romans 8:31 "If God is for us, who can be against us?"
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