Making money in a down market!
January 20th, 2010, 1:41 pm EST. Posted under Theta Articles by ThetaTrader.
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DOW – 194 @ 10,530
01/20/2010 – ThetaOptions – Making Money in a down Market.
We would like to take this time to illustrate how our TWO portfolios are holding up during a 200 point down day on the DOW. The following two images are snap-shots of our current positions within the (MP) an IRA along with a BETA weight pegged to the DIA index (The DIA is an ETF that is 1/10 the price of DOW Jones Index). Please click on the multi-page links to follow this post.
Current DOW Price: DOW – 194 @ 10,530 - 1:30 est
IRA Portfolio: The IRA Portfolio is UP $85 with DIA beta weight of -5.62 & Theta value of 10.28
Margin Portfolio: The (MP) is up $25 today and has a DIA beta weight of -5.66
Currently the (MP) is using $11,000 of margin or 20% of our total Portfolio size.
Delta Neutral (DIA):
Overall both Portfolios are fairly delta neutral with regard to the DIA Beta Weight & our Theta decay is positive.