“It’s the same old theme, since nineteen-sixteen
In your head, in your head, they’re still fighting” – The Cranberries
RIP Dolores. Brilliant Irish voice and another 90’s music star gone way too soon.
The market was all over the place this week with the government shutdown looming and it was time to finally exit my position in XIV. I exited at $139.07 for a 29% gain in 61 days. My 50% portfolio allocation for volatility trading is now in cash until I see conditions improve.
The same day I exited XIV I also closed my SPX position for a 7.2% loss. This was one of my worst losses on a broken wing butterfly and was a result of the SPX whipsawing down over 35 points intraday while volatility spiked. It was also the perfect storm in the fact that I had just put this trade on and had a much lower days till expiration than usual. Recently I’ve been disappointed in the SPX broken wing butterfly results and I’ve been shifting more and more into RUT and CL. I did open a new SPX trade to take advantage of the spike in volatility.
Below are my current positions.
Volatility – Currently in cash representing about 1/2 of my trading portfolio. It’s very likely that I’ll re-enter XIV shortly.
CL (Trade 16) – April expiration and strikes at 64.5-62.5-59.5. Currently up 0.9%.
RUT (Trade 18) – Expiration is February 16th and strikes are 1600-1570-1520. Currently up 2.1%.
SPX (Trade 19) – Expiration is March 2nd and strikes are 2795-2755-2690. Currently down 0.7% mostly due to commissions.
Government is officially shutdown. Lets see how long it will last. They’re still fighting.