So much for sitting in cash. I bought 400 OIH at $109 and sold 4 October $110 strike contracts for $6.40/each today to rake in a little over $2,500. I consider this a double hedge. I bought DUG and raked in about $2300 which made me profit from the drop in oil, if oil remains stable or climbs then I’ll profit from owning OIH hopefully. If oil rises or falls then I’m hedged with my options short positions. It’s wait and see at this point. Only 7 business days till October expiry. So far this month, I’ve raked in over $4500 in cash but I’ve got deep paper losses on some of my other equities like DDM & SSO.
Just because the market is down doesn’t mean you can’t make a little money here and there……
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