P/L: XLE, XLF, FAZ, & IWM

Yesterday's IWM Put is a perfect instance of seeing a strong signal with VERY high probabilities of a move down, but very little profit potential in an IWM short or even the 3x leveraged SRTY (long). The use of options made great sense here, they offered the leverage to take a great signal and give it the profit potential it had been missing while remaining a short duration trade which would suffer very little in the way of Theta (Time ) decay. In fact, the IWM put yesterday was in my view, the perfect tool to make the trade work while negating all of the negative aspects of using options such as time decay and the position was at minimal market exposure (I judge market exposure to be market risk as well).

I need to post the IWM P/L, but I realized I had not posted the P/L for yesterday's closed positions: XLE, XLF and FAZ.


FAZ

At a cost basis of $29.38 and a fill of $28.90 the P/L came out to a loss of -1.6%. This is the position loss, as a portfolio loss with regard to the 2% rule, it would have been approximately one twentieth of one percent and well within the acceptable loss.

IWM

At a cost basis of $2.07 and a fill of $2.49 the IWM puts that were only open approximately 2.5 hours came out to a gain of +20% 

XLE

I must have forgotten or erased the screen capture of the position so I had to go back and look up the original fill for the 20 contracts of XLE October $86 Puts, which had a cost basis of $2.93. At the fill of $2.74, XLE puts came in at a loss of  -6.5% or about -$380.00

XLF

At a cost basis of $.38 and a fill of $.29, the P/L came to a loss of -23.6%, since data was down that say, the dollar loss would have been $1027.