The market opened sharply up this morning – and stayed up throughout most of the day.
Here is the markets at the closing bell.
Days like today remind you that you’ll lose some – I’m fortunate enough this is my first lost since starting this portfolio on March 20th.
I closed my losing IWM position at 100% of loss as a percentage of premium. You can see the option chain below; I originally sold these options for $30 in premium. Today I bought them back for $61
The trade duration was 33 days I think it had plenty of time to work out for me. This was one of my last two positions in the May cycle. The total loss was $33.58 including fees, representing a loss of 48% as a percent of buying power reduction.
I opened 4 new positions today; 2 positive delta trades and 2 negative delta trades
I’m judging my next monthly performance review off the starting liquidation after the last report. Last report was on April 20th – at that time the Net Liquidation was $945.36 and I’ve added $1k to the account – my high water point is now $1,945.36
My goal is to collect around $312 and to end up $78 more than the high water mark.
The current portfolio is collecting $280 in premium and the current value is $-36.
Here are all 10 positions and their Greeks 🙂
I have a higher level of negative delta than I’d like so I’m going to skew trades to positive delta trades to balance out some of the risk to the upside.
Here is the risk graph of all positions.
The risk is weighted to the SPY. Max gain is $280 and max loss is $520 with a 67% chance of success (if held to expiration). I still feel positive about this portfolio and this cycle ~ I’m pretty far away from declaring the cycle a break even or loss cycle. Still looking forward to making a profit.
Account Net Liquidation and Buying Power Reduction