Macchia69 @Macchia69: "Catch 22 Catch-22" is a term..."

Italy

Edited

Catch 22 Catch-22" is a term coined by Joseph Heller in his 1961 novel of the same name. It describes a paradoxical situation where an individual cannot avoid a problem because of contradictory constraints or rules. In the novel, the specific "Catch-22" is a rule affecting U.S. Army Air Force airmen: they can be declared insane and relieved from duty if they request it, but requesting it demonstrates sanity, making them ineligible for relief. This concept has since come to symbolise any no-win situation where one cannot achieve a desired outcome due to inherent contradictions in the rules or conditions. What Has it Got to Do with Me? I'm currently positioned at the top end of the strategy, with enough funds to protect the portfolio from a crash. However, this upper limit position has resulted in no portfolio growth, but also no realised losses. The way forward involves moving the grid upwards and resuming trading, but this requires new cash. I do not want to use the cash set aside to protect the existing positions. If I don't trade, I'll never generate the cash needed to shift the grid safely. If I do trade, I risk tying up the safety cash, which would not be available to adjust stop losses if necessary. The portfolio is maintaining its value (i.e., I have not closed any trades at a loss). Although overnight fees and dividends are eroding some value, the attrition rate is manageable. So, I will hold steady a little longer. If the $UK100 drops below 8000, I will be able to begin the grid-shifting process. It also appears I’ll soon be able to liquidate the ETF positions ($SPLV, $VNQ) freeing up additional cash to facilitate that move. Call it cognitive dissonance or even schizophrenia, but I might be the only overly cautious leveraged short seller around. 😂

2 Mentioned

UK100

VNQ

Vanguard Real Estate ETF