2020: Week 14

Weekly Portfolio Chart

This week was very different for me. I was home all week. My day job as a leather craftsman is non-essential to public health and safety. So, the owners of the company I work for followed the Minnesota Governor’s order to shelter-in-place. It feels weird that staying at home is the best thing I can do right now, but that is the truth of the situation. And I am happy to do my part. Now, on to trading!

The biggest news of of my trading week is that my Risk Manager approved me for more trading capital! (My Risk Manager is my wife, and her role in my trading career is one that I appreciate more and more. I can unequivocally say that having her input on the big picture decisions in my trading will only make me a better trader.)

Two weeks ago I sold a bass guitar I’ve had for almost 9 years. I haven’t played it in about 8 years. This past week I sold a 1976 Honda CB750. My brothers and I have been working on it at various points throughout the past 12 years. These days we all have about as much time for projects like that as the president gives to reporters. Anyway, between those two sales, I earned enough extra income that even in these uncertain times I was able to put a portion of it into my trading account.

Photo of a Squier 50's Vibe Bass
Squier 50’s Vibe P-Bass in Butterscotch
1976 Honda CB750
1976 Honda CB750

New Capital, New Rules

My account now flush with an extra $500, I realized it was time to revisit my self-imposed trading rules. As with all things, simplicity is often best. My rules are as follow:

  1. Always maintain $300 in cash. (This constitutes roughly 50% of my capital)
  2. Have only Credit Spread or Iron Condor open at a time.
  3. Keep all other trades in Ford. (See last week’s entry for details on that decision.)

New Positions

I bought two more long calls in Ford this week. Yes, I know, I’m way long in a bear market. Here’s the breakdown:

  • $7 call expiring 1/15/21 for $40. This is going to be my new anchor position.
  • $8 call expiring 9/18 for $15. This, and the two calls I already have will be sold the next time Ford rallies a bit. While I won’t say I’m confident things are going to recover anytime soon, I am fairly certain I will be able to make some gains on all of these calls.

My goal for next week is to find a good short position to take, either in Ford, or by selling a credit spread.

I also received the ability to buy Fractional Shares in my Robinhood account. I don’t know how often I will use this feature in the near-term, but it is a pretty great option to have. Long-term I would like to turn my Robinhood account into a Dividend DRIP-ing machine. (Until such a time as I have the funds to make moving to a different broker make sense, I’ll be sticking with good ol’ semi-reliable Robinhood.)

Position Brief

TickerPositionUnrealized P/L
FLong Call (Exp: 9/18 $8 Strike)-$2.00 (-13.33%)
FLong Call (Exp: 9/18 $9 Strike)-$9.00 (-52.94%)
FLong Call (Exp: 1/15 $7 Strike)+$1.00 (+2.50%)
FLong Call (Exp: 1/15 $10 Strike)+$3.00 (+30.00%)
F10.52 Shares-$25.39 (-36.39%)

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