The Lemon Fool

Well, that was a fun day! All positions closed out at xirr 25.8%. I'm ecstatic with that outcome, and having a couple of weeks off to recover ....

I have been in Ecuador for a few weeks, arriving back this morning, so missed all the fun. Volatility spikes often present a good opportunity to short vol in the immediate aftermath, so you might not want to wait 2 weeks before going back in.

I shorted Apr WTI puts at 5650 this afternoon after the US government reported an unexpected rise in crude stockpiles, causing a 3% drop in crude prices. Implied vol 30%. Not done anything on stock market options yet, but probably will tomorrow for Mar expiry as implied vol still looks decent.

I'm expecting an uneventful expiry tomorrow: S&P 500 Jun 24000/25500 2.9x

I made a lot of money last year, and lost a lot in February, but XIRR will close just on target at 26.2%.

However - ESMA are changing margin rates next month which looks like it will put a spanner in my returns - so I'm ending the experiment for now but might come back to it next year. (Also - I need the funds back to buy Moorfield Jr #1's first car )

It's been emotional - hasta la vista.