Friday, June 24, 2016

Friday's Agenda: Brexit Shock

I don't normally post on the status of my positions until I've taken some sort of action, such as exiting or adding to the position or rolling it forward to a later expiration.

Given the market shock of the Brexit vote, however, I shall do a quick review of my positions this morning. With the U.K. leaving the European Union, do I need to leave any of my positions to avoid further loss?

I hold seven positions Here's how they're faring on the first day of the Brexit Era, about half an hour after the U.S. markets opened.

Volatility plays (options):
  • EFA: Price $54.87, within the profit zone of $61-$52.
  • FXE: $108.25, profit zone $112-$107
  • GDXJ: $41.48, profit zone $33-$43
  • TLT: $135.35, profit zone $128-$143
All remain with their profit zones are poised to continue to benefit from time decay as they approach expiration.

Dividend plays (shares)
  • NRZ: $13.45, 5.5% above entry price
  • STWD: $20.66, 5.1% above entry price
Zombie time spread (options):
  • UNG: $7.98, which $1 above the yesterday's opening price. (The options have been unprofit for quite some time; that's why the position is a zombie, a long leg without a short leg.)
My positions have proven to be robust int he facd of the storm, and under present circumstances I plan to take no action today as a result of the vote for the U.K. to leave the EU

-- Tim Bovee, Portland, Oregon, June 24, 2016

How Britain Will Leave Europe
Denis McShane


Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

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Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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