The pre market is up a boat load on comments from the euro zone on Implementing QE. We will likely look at taking off our hedge if spy breaks 205. It cost us a bit but it was worth the protection. The TLT hedge we implemented will still actually profit as TLT remains high despite the rise. Our trade is now doing well, Actually our entire portfolio is. It’s neat, our portfolio responds to all upside and barely falls on downside. Can’t ask for more than that. The most sensitive portion to downside is the spy TLT pair trade. Our protector portfolios experience downside when the market moves down but only temporarily. It has challenges only in whipsaw environments that are prolonged, though the most complicated part of that strategy is how to mitigate whipsaw risk. It’s the part I worked on for years (how to sell the weekly puts etc). I had tried so many things in back tests. Then a member of a forum had a brilliant idea that really helped solve the whipsaw issue. I took his idea and made it better. It’s kind of what I do. Leech other ideas and make them better 🙂
Valencia is nice. The streets are littered with orange trees. See the picture below. Not much of interest to post really. We just walked around. I’m a fan of Spain. We may do 6 months here in July when our lease is up before heading back to Cayman. Depends on a few things re business. But would be nice to experience the mainland before heading back to our dream world in cayman.
