Steady is as Steady Goes...
posted by Justin @ 7:51 PM
My Real $ Portfolio Trading Results
JUSTINLENT.COM focuses on 4 things...
#1. Direction-Neutral Options Trading
#2. Uncorrelated Trading Strategies
#3. Directional Futures Trading
#4. Strategies for Speculation
...and if that doesn't excite you... well... you're probably better off playing the lottery!
| Date | Portfolio Value (with Gross P/L) | Portfolio Value (with Net P/L) |
| 01-28-06 |
$100,000
|
$100,000
|
| 02-28-06 |
102,962
|
102,038
|
| 03-31-06 |
109,640
|
107,774
|
| 04-14-06 |
116,013
|
113,797
|
| 05-11-06 |
123,771
|
120,680
|
| 06-02-06 |
128,367
|
124,319
|
| 07-02-06 |
141,640
|
136,139
|
| 07-19-06 |
146,676
|
140,798
|
| 07-31-06 |
147,534
|
141,525
|
| 07-31-06 |
148,532
|
142,523
|
The JustinLent.com $100,000 "Paper-Folio"
The "Paper-Folio," started in January 2006, is now profitable:
+42.5% Year-to-date.
CLICK HERE to see the actual trades.
(Excel format available for download.)
I do all my trading at www.ThinkOrSwim.com
***I started paper-trading this strategy as a hobby since I had to stop trading it for my real portfolio due to trading restrictions imposed by my new employer (a large Wall Street firm). I still paper-trade it simply because I'm passionate about options-trading, and I want to keep my hand in it so these trading skills stay sharp***
To see the results I achieved while trading this for 18 months in my real portfolio, click here.
If you're interested in hearing more about the strategy, contact me at: justin@justinlent.com
Speculative Insights & "Paper-Folio" Options Trading
Analysis of the hedging and rebalancing of a "direction-neutral" option portfolio's greeks, as well as insights on directionally trading other *hot* markets.
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1 Comments:
At 2:58 PM,
Anonymous said…
Justin, do you allocate any part of your portfolio for trading around the earnings announcement? This month I have allocated 4-5% of my portfolio to play around the earnings announcement, but I must admit, I have not been very successful at it so far. For e.g., I purchased a call backspread on INFY on Monday. I expected this stock to move by around 6-7% on Wed (i.e. today) after the earning announcement late Tue night. However, the stock fell by more than $2 after bombings in Mumbai on Tuesday. Today (Wednesday) the stock rallied, as expected, after the earnings. However, because of $2 drop yesterday and market maker's persistence to sell atleast $0.30 to $0.35 above the mark, I was just able to break even.
What is a good way to trade around earning announcements? Should one go with backspread or a simple straddle? Or, should we just place a calendar or diagonal a week before the earnings and close the position just before the earnings announcement when the IV is high? Any other ideas/comments?
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