The Fund’s position strengthened slightly over the course of the week, posting a 3.9% gain. Overall, the Fund is up 12.84% since inception. July options contracts expire this coming Friday, the 18th. We currently hold two positions that are in-the-money (ITM), with several others whose prices are relatively close to short strikes. This coming week should contain a high level of volatility as contracts approach expiration, but the Fund is positioned reasonbly well to capitalize on favorable to neutral price movements.

Despite insane gyrations in the markets this week, most of our positions ended relatively range bound.

You can see the severe price movements many of our positions underwent; in particular, the real estate sector (IYR) had two back-to-back days of first a +7% gain, followed by a -7% crash. Natural gas (UNG) fared the worst, closing the week down 5%. Higher than normal, but in the right direction, movements occured in long term bonds (TLT), oil (UNG), and real estate (IYR).  

We go into the final week of July contracts in a relatively strong position, but with several key vulnerabilities. We have little cash reserve, having previously used it to reposition most of the portfolio last week, and we have two assets that are currently ITM. On a good note, UNG increased 2.43% after-hours, which could mean a solid gain next week if natural gas breaks its fall and starts an upward trend. We’ll look to begin closing out risky positions early in the week, cross our fingers, and hope expiration brings a solid profit!

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