SKX 9/8/16 Look Back Trade

SKX – 09/08/2016

This was a bear call spread that I actually sold to help improve a covered call position I had in SKX. SKX was not performing well in my covered call portfolio so I decided to place a hedge trade. If SKX stayed the same or went down then I would make money on my hedge. If it went up then my hedge might lose money but I would make some of that up on my covered call position.

When I entered the trade SKX was trading at $24.15, when I closed it about 13 days later it was trading at $21.28. My profit on this trade was $220.00 or about 8% for 13 days. Great on this trade. Not so great for my existing covered call trade.

It is not uncommon for me to enter a hedge trade against my primary portfolio this way. Helps reduce my risk and improve my overall portfolio performance.

It is also not uncommon for me to close my spreads early if the profit I am looking for is there. Many times I place my close trade as a GTC when I enter the trade.

Date

Sym

Action

Exp

Strike

Price

Cont

Type

Cost

Balance

09/08/16

SKX

STO

OCT16

$27.00

$.42

10

Put

$420.00

$420.00

09/08/16

SKX

BTO

OCT16

$30.00

-$0.12

10

Put

-$120.00

$300.00

09/21/16

SKX

STC

OCT16

$30.00

$.03

10

Put

$30.00

$330.00

09/21/16

SKX

BTC

OCT16

$27.00

-$.11

10

Put

-$110.00

$220.00

Loss:

$220.00

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