Recent HPQ Adjustments in Fusion

The other day I had to make an adjustment to my holdings in the Fusion account.  My put insurance was running out of time and I needed to renew the policy.  In the process of rolling the put, I took some time to reflect on what had happened to the position over the last year.

Initially, I was very disappointed because I did not have a profit in the position after holding it for more than a year.  But on further reflection, I observed that HPQ declined 17% in February of 2018, recovered and declined 16% in March of 2018, rose 26% from April to October of 2018, and finally declined 19% during the correction we are presently experiencing.  During all that volatility the position was never at risk for more than a 1-2%.

During that time, I could have exited the positions for a 10% plus profit if I only had a crystal ball on the coming decline.  So, in summary, I was always able to sleep at night knowing my position was safe and avoided the concerns during some volatile action.  I rolled my put out in time, hoping to time my exit better in the future.



About Ernie Zerenner

I'm a self-directed investor since retiring from the Hewlett Packard Company. I have been a stock and options investor for over 50 years and currently trade for my own account. I own both the RadioActiveTrading and PowerOptions web sites. I use the tools we've developed there to find, analyze, and manage trading. Most of my trading activity uses the principles I teach in The Blueprint so I'm always hedged for safety.