Thursday, June 25, 2009

Another Investing Update

Since my last update about two weeks ago, I've added to a few positions and opened a few new ones. I increased my short oil exposure and my long Treasuries exposure. I was doing much better earlier in the week, but overall I'm pretty satisfied. I'm especially satisfied with the improvement shown in my SDS and FAZ positions; I was afraid those would never recover. Of course, I still have a ways ahead of me before I get back in the black for those.

I opened up two new silver positions. The first is the silver ETF, which I had sold just a few weeks ago. Silver has fallen a lot lately, and I think now's a good time to get back in. As of now, I think it has a downside risk of around 50 cents (silver at $13.25 and SLV at $13.00), but an upside risk of several dollars, up to around $18-19 for silver. Considering this, I also decided to buy some call options on SLV. It's my first time buying options, so let's see how it goes. Based on my calculations, I could get gains of up to 275%... or watch my investment go to $0. It will be a fun ride.

Open Trades
1. LONG ProShares Ultra Short S&P 500 (SDS) (effectively SHORT)
Bought 5 shares at $67.14; currently at $57.76; loss of 14.0%; held for 61 days.

2. LONG Direxion Daily Financial Bear 3x Shares (FAZ) (effectively SHORT)
Bought 325 shares at $7.77; currently at $5.09; loss of 34.5%; held for ~58 days.

3. SHORT PowerShares DB Crude Oil Double Long (DXO)
Sold short 325 shares at $4.59; currently at $4.28; gain of 6.8%; held for ~11 days.

4. LONG Direxion Daily 30 Year Treasury Bull (TMF)
Bought 29 shares at $35.25; currently at $38.85; gain of 10.2%; held for ~11 days.

5. LONG iShares Silver Trust (SLV)
Bought 150 shares at $13.53; currently at $13.68; gain of 1.1%; held for 2 days.

6. LONG iShares Silver Trust October 14 Call Options (SLVJN)
Bought 6 contracts at $1.11; currently at $1.10; loss of 0.9%; held for 1 day.

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