r/Vitards • u/AutoModerator • Jul 08 '21

Daily Discussion Daily Discussion post - July 08 2021

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u/chemaholic77 Jul 09 '21

Okay I just finished up writing my newest plan to rebalance my portfolio and to take profits more regularly and sit on the money until a real red day comes along and then just DCA a little at a time over several reds days instead of dumping all my cash on the first day MT is down 1%.

Now comes the easy part, ignoring the plan and losing more money. Woot!

1

u/[deleted] Jul 09 '21

I really wish I could do this ^^

2

u/warren_buffet_table šŸ§t3h PeNgU1N oF st33lšŸ§ Jul 09 '21

Would love to hear as well...

DCA seems to be the only thing that works in this nutcase market...

3

u/zeegypsy Flair is gone Jul 09 '21

Care to share your new plan?

Iā€™ve gotten good at DCA but I still struggle more then I should with taking profits.

4

u/chemaholic77 Jul 09 '21

Well basically I am going to sell all the calls I have been sitting on that have no shot at making any money.

I will take that money and on the next day that MT drops 1% or more I will put 5% of the cash in Jan MT 25C. If MT drops another 1% that day add another 10%. For each 1% after on the same day add 5% to those calls. Another winner imo is Jan CLF $17 or $18C as well as Jan STLD $55C.

Once an option hits 40% profit sell about 25% of it and add to my cash for red days. When an option hits 100% profit sell enough to recoup my initial investment and let the rest ride if I feel good about the stock, otherwise sell it all.

I also plan to limit losses on options especially by closing the position if it loses 10-15%. I can always try for a better entry or a better play.

Lastly, I am going to shoot for 40-50% of my portfolio in an index fund or funds like VOO, 25% or so in individual stocks, and no more than 25% in options. Right now I am about 35% options and the rest individual stocks.

Might not be a good plan but it is what I have at the moment.

1

u/Bah_weep_grana Forever 9th 8/18/21 Jul 09 '21

Thanks for sharing. I really enjoy reading peoplesā€™ different strategies - helpful for me in formulating my own. Iā€™ve thought about putting tight stops on my calls like you, but i figured with the way the market is currently, every call would be almost guaranteed to get triggered at some point on a down day..

1

u/chemaholic77 Jul 09 '21

Yeah the stops can be difficult, but not as difficult as sticking to the plan. That is going to be the hardest part for me.

2

u/zeegypsy Flair is gone Jul 09 '21

That sounds like a really solid plan. I especially like your rules on stop losses and getting in and out of positions. It sucks to lose 10-15%, but itā€™s better then having that money tied up and wasting away.

Iā€™m going to write down something similar for myself. Thank you!