August 4, 2011 – Next Buy and Update

Next buy is 2,000 shares at $120.

Sold half the hedge @ $43.95 just now for approximately $2,931 gain. Will post new exact figures at the end of the trading day.


SPY: -$31,840
hedge: $3,774.03

Net for this trade:
-$28,065.97 (unrealized)
+$1,223.60 (realized)
+$2,931.69 (realized)
+$1,129.72 (dividend)

Deciding where to put the next SPY buy. Originally I said 120 (and today’s low was $120.06!). I may keep it there. After all, there is no way to predict price so there’s no way of knowing how low price will go.

I may lower it to 115 just to get a better average price. It’s not like I’m in a hurry to close out this trade.

I’m not worried about the drawdown in the meantime. I’m making money on the hedge and dividends if the position stays open long enough.

I’m not using 136 as a target anymore, however, regardless.

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