Well there’s no way to sugar coat it. The market is in correction/crash territory. Most stocks are on their way down and that includes basically everything I’m holding.
My VTI has dropped about 7.5%, giving me an unrealized loss of ($179) on my $2,383 investment.
RIOT is a bigger issue. Cryptocurrencies have taken an absolute pounding in the past week and Bitcoin is now down to $35,000 USD. It hasn’t dropped that low in 6 months. RIOT correlates both with tech stocks and bitcoin so my shares are currently down ($668), or about -31`% . Remember when I said no one should copy me? This is why.
Luckily my covered calls have slightly softened the blow. You may recall on my last update I opened a second covered call for a premium of $123. Well I paid $33 to close it this Friday for a realized gain of $90. Adding that to the $31 I made on the first option I’ve now realized $121 in premiums. That takes my total unrealized loss on RIOT down from $668 to $547, or -26%. It’s something!
Furthermore I opened a new covered call with a strike of $22 expiring March 4th for a premium of $96. Thanks to the continual dumping of RIOT throughout the rest of the day I’m already up $32.
So what to do now? Well the responsible thing might be to close my position with RIOT, take the L and run. But I’m reasonably sure that bitcoin will come back eventually, even if it takes a couple months. Hopefully I can continue to collect these premiums until then.
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