Daily Archives: October 7, 2017

The Magnificent Seven

By -

I trade a couple of different portfolios, and today I thought I’d talk about the smaller one, in which I trade principally options. To be clear, I am not at all a sophisticated options trader. I simply buy puts that tend to have three characteristics: (a) in-the-money (b) plenty of time until expiration – – three, four, or five months out (c) are against securities that look well-positioned to fall and have also illustrated their ability in the past to fall hard.

Here are the seven positions in this portfolio – – first up is XOP, the S&P oil and gas producers, which as you can see from SlopeCharts has a history of forming tops and tumbling.