Portfolio 2 — Active | Weekly Update

Week Ending April 17, 2026 — Week 16

TonyB Commentary

Last week I said the April-to-May rebuild was complete. This week the market gave us exactly what we expected — a grind higher with no clean setup — and we used it to do the opposite of what most traders do into strength: we cut risk instead of adding it.

On Tuesday we closed the entire income engine that was built in the prior rebuild — 14 short put units gone — and opened a single 2-unit seed vertical up at 665 with a long 647 hedge. That single trade stripped ~80% of the directional exposure out of P2 and put BP below 10% for the first time in months. On Wednesday we rolled that seed up another 10 points to 675 and added a second matched vertical at the same strike. This week we extended one step further — two small June 18 verticals (660P / 635P) to layer a second expiration onto the book without concentrating the May 15 cycle.

The theme is the same one I’ve been preaching: sizing is everything, and nobody gets paid for being loudest at the top of a rally. Four weeks ago we were at 71% BP with 813 delta. Today: 11.89% BP with 64 delta. Portfolio value made a new all-time high along the way. That’s what discipline buys you — the right to add risk on your terms, not the market’s terms.

From here, a pullback or a vol event is what I’m waiting for. If we get one, I’ll scale into short puts aggressively because the premium will finally be worth the risk. If we just keep grinding, I’m happy collecting small theta on tight verticals with hedges that are actually close to the money. The hedge isn’t a hope — it’s a working part of the portfolio.