My Options Portfolio.
Six positions and risk graph:
I have 6 positions collecting $172 in premium. I’ve used $431 in buying power to sell these credit vertical spreads.
The stock market opened higher – I woke up (after opening) down $26.50. Meaning it’d cost $26.50 more dollars to close the position then before the open.
Here is quick chart showing how the opened looked on Google Finance.
Throughout the day my account ‘lost’ as much as $39; with around one hour left before market close the market drifted lower and my account ended the day up $20.
Net liquidation is now $946, with $515 available in buying power.
I’m trying to collect 4 x 4% of my total portfolio and add a 4% gain monthly (more likely to average 48% over a year than a even 4% per month). The math works out like this.
$946 * 4% = $37.84 <– amount I want to gain before this cycle ends
$37.84 * 4 = $151.36 <– amount in premium I am trying to collect (4x).
Currently collecting $172 so I’m not going to add a position until I close one out and the amount I’m collecting falls below $151.36
I’ll be adding more posts soon. I hope to post when I add or close a position and when the market or portfolio gains or losses lead me to write.