Letters from Sanford Street # 457

I closed out a hell of a lot of positions on Robinhood. I focused first on any positions that I could have a realized gain on, even if closing that position was at a cost greater than the mark.

Then I closed out any losing positions. I honestly don't like taking any realized losses, but I was also kind of sick of having my portfolio as volatile as it was, and there's also the idea that, at some point, you kind of just have to bite the bullet. The first time I ever had to bite the bullet was with Abraxas Petroleum, and it was due to the fact that it stopped trading on the stock and options exchanges. After taking assignment on my Abraxas Petroleum put options, I sold my shares for less than the strike price I was assigned at. I had no choice, I had to bite the bullet on that bitch. I would have preferred to hold the shares and sell covered calls on the assigned shares for the remainder of forever, but, without a timeline for when Abraxas Petroleum would be re-listed on the exchanges it made more sense to me to just take the loss and move on.

I also rotated my entire portfolio yesterday, and, it's nearly the same as it was before, with the with the exception of the options I closed out. So I really just created more taxable income than I needed to.

I'm going to continue trading options, but I'm probably going to try something new.

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I was going to get my tires changed yesterday, but Walmart didn't have my tire size.