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

Ernie is a self-directed investor after having retired from the Hewlett Packard Company. He has been a stock and options investor for over 40 years and currently trades for his own account. He is an owner of both RadioActive Trading and PowerOptions and uses the tools he developed on both sites to find, analyze, and manage his trades. Most of his trading activity uses the principles of the Blueprint to hedge his investments for safety.