I had to close BABA a loser today – it was frustrating how much it just kept going against me – With only 9 days left at the time I figured I would rather get out for a $60 loss than the max loss of $150
Here is the option chain for Alibaba
Here are the statistics of the trade.
Buying power reduction: $150
Profit after fees: -$62.58
Profit as a percentage of buying power reduction: -42%
I was able to close a tiny winner in a USO Debit spreads. I usually like to manage these at 25% instead of the usual 50%
Here are the stats for this USO options trade:
Buying power reduction: $35
Profit after fees: $6.42
Profit as a percentage of buying power reduction: 18%
This Alibaba loss and my loss to the Boeing position I’m now down -$36.80 for this cycle so far. I have until next Thursday the 20th to cash in some winners to have a winning month.
Here are my closing trades so far.
All my positions and basic Greeks.
Risk Graph for the whole portfolio
Buying power and net liquidation for the options portfolio
Today I closed Boeing as a loser. Boeing breached my strike price and was only 10 days away from expiration. Too much risk for my appetite so I took a $60 loser.
Boeing Option Chain – Closing the loser.
Boeing options – Trade Stats
Duration: 20 days
Buying power reduction: $190
Profit after fees: -$62.58
Profit as a percentage of buying power reduction: -33%
Considering the max loss was $190 losing $60 wasn’t the worst thing that could happen. I looked into re-opening a position in the back month but for the strikes I’d want they only had $10 wide options.
I also opened a FXE debit spread. I usually avoid debit spreads I prefer to sell premium.
FXE Option trade
I took this ‘bet’ cause it costs $25 for a potential max profit of $175 – that’s a 7:1 pay off ration. The odds are 23% to make any profit. I’m looking to take this trade off at about 25% of max profit .. about $44 profit.
The account shows a loss of $14.50 – Below you can see every open position and their greeks.
Here is my net liquidation and available buying power.
Today I was able to close my entry error on FXE. I accidentally placed a debit put spread with only 14 days remaining on Friday.. I meant to put it on the back month which was about 39 days away. I lost $10.58 including commission and fees.
Here is the FXE option chain
Today was a slight down day with the portfolio being down $7.
Current Options Portfolio
Net liquidation and available buying power
This post is catching up for 7-6 thru 7-7
I ended up closing my MSFT 70/72.5 call spread for a small winner. I gave it plenty of time to work (45 days) and it was going back and forth against me. Since it only had 15 days left I didn’t want to be caught holding a loser instead of taking a small winner when I could
Stats on this small winning option trade [MSFT]:
Buying power reduction: $175
Profit after fees: +$8.42
Profit as a percentage of buying power re`56tduction: +4.8%
I also opened a TLT iron condor.
Here is the fill:
$4 wide and collecting $146 with 43 days until expiration. Max loss is total width minus credit received so $354. The break evens are 126.46 to the upside and 119.54 to the downside.
Opened a small debit spread on USO. Bought the 9 call and sold the 10 call for $35 debit. My break even is $9.35 and max profit would be $65
Here is the USO chart with the break even floor marked.
I was looking to get back against FXE via a debit spread; however I accidentally didn’t double check the expiration dates; I ended up with this turd of a trade. I like the strikes and price – but it’s only for 14 days – I plan on getting rid of it Monday for a small loss and seeing what the premium might be for the strikes I want.
Here is my current open portfolio
Net liquidation and buying power available.
Bonus Update! Here are my closing trades since 6-21 (start of this new cycle) it’s looking great as long as I don’t blow it up with the remaining open positions.
I closed my old QQQ Iron condor for a small profit $21 before fees. I was being tested on the 136/131 put spread side. Below is the QQQ option chain
I was then able to reopen a smaller position ($2 dollar wide instead of $5 wide). Now by break evens are 130.40 to the downside and 144.60 to the upside. Giving a 7.12 cushion to the upside and 7.08 to the downside; 5.1% in both directions.
I see this as taking profit, re-centering my Iron Condor all while taking off some risk.
Here are the stats on the closed trade : It’s not the standard 15-20% return on buying power; but I’ll accept all wins – even some ‘scratch’ trades.
Buying power reduction: $294
Profit after fees: +$15.84
Profit as a percentage of buying power reduction: +5.4%
My other open was a 247 / 249 call spread for $57. Break even is $247.57 just outside the expected move.
Here is a SPY chart (3 month, measured in 1 day) .. marked with the ceiling I set.
The overall portfolio had a down day losing about $113 in value.
Here is the current Net Liquidation and Buying Power available.
Today I was able to close to winning trades including one debit spread.
IWM – 1 day trade; I took this one off a bit early since it was a debit spread. When it hit 25% of the debit I decided to take some profits.
Here is the option chain.
Option Trade Stats:
Buying power reduction: $80
Profit after fees: +$17.42
Profit as a percentage of buying power reduction: +21.7%
I also was able to close a winning trade in SPY, closing the position at 39% of max profit. It was nearing the 21 days to expiration mark and had been going against me for most of the 35 duration. I also was hungry to take some profits while having so much good fortune lately.
Here is the option chain for the opening and closing.
SPY option trade states
Duration: 35 days
Buying power reduction: $136
Profit after fees: +$22.42
Profit as a percentage of buying power reduction: +16.4%
I had another great day with the portfolio gaining $111 in value. Which now has a positive value of $38.
Here is my Net Liquidation and Buying Power.
The portfolio total net liquidation is looking good.
Today I opened 2 new positions. I opened a call spread against Boeing (BA) and a Iron Condor in QQQ.
I sold the 205/207.5 call spread in Boeing for $60, with a max loss of $190.
Here is the stock chart for the last 30 days with my break even marked with a blue line.
and here is the fill for the order.
Here is the 30 day chart with my lower and upper break evens for the QQQ iron condor. Continue reading “Options Blog Portfolio Update – 2 new opening positions BA and QQQ”
I have been slacking lately in updating; However here is the month long update. This Options Portfolio Recap goes from May 21 until the close of market June 20th.
I had 6 winners and 3 losers for a total profit after fees of $57 – $75. It is very hard to calculate going back.. which emphasizes the need to keep up to date.
The easiest way to calculate the profit was to measure from the last Net Liquidation, $1783.25 to the new liquidation $1799.10 and add back in the current portfolio losses (since these aren’t losers remaining from the last portfolio). The current portfolio is down $63.50 and the net liquidation is up $5.85 so when you add them together I’ve gained $69.35 which is right in the middle of my 57-75 range above.
Here is a chart that shows the account recovering although since it’s based on net liquidation and the portfolio is currently down about as much as my gains it only shows a slight improvement
Here is my current portfolio
Current net liquidation and available buying power.
I ended up gaining 3-4% return over the last net liquidation of $1,783 it just doesn’t show cause I’m carrying a loss in the current portfolio. 4% is my target performance and that is great.
I’m also changing one bit of strategy. I am no longer cutting my losers at 100% of premium. I am going to let most plays ‘play out’ and make tough decisions starting at around 21 days to expire left. I am still taking my winners at 50% of max profit.
The reasoning is that when I enter a trade with 70% of success it’s really only 70% ‘in that moment’ and that 70% includes all the trading days of the contract. So when I was cutting losers at 100% of premium I wasn’t really giving them time to work.
The new strategy is basically to go at least $2 – $3 wide still collecting 1/3 the width of the strikes. This makes a 70% POP (percentage of profit / success) trade a real 70% and since I’m managing at 50% the likely hood of winners goes even higher, plus I can when managing at 50% flip my capital over more often then letting the trades expire.
Today I opened my first trades of the 3rd cycle, 5-21 thru 6-20-17. I was also able to close TGT a winner.
TGT Options Trade: Closing Trade
Duration: 6 days
Buying power reduction: $200
Profit after fees: $22.42
Profit as a percentage of buying power reduction: 11.2%
I opened a $70 / $72.50 call spread for $75 with a 67% chance of profit. Continue reading “Options Blog – Closing Target a Winner & Opening MSFT, FXE, EWZ”
I experienced my first down month. I was hoping it wouldn’t come so quickly but the experience like all others is something to learn from.
TL;DR: 10 trades, 5 winners 5 losers, -$162.42 (-8.35%) in Net Liquidation, -$115.80 (-5.95%) in Premium collection over last Net Liquidation. Continue reading “Options Portfolio Monthly Recap – 4-21 thru 5-22-17”
Today the market treated my ‘normal portfolio’ very well – but punished me for branching out into a earnings play. I wouldn’t say it was mistake – It’s more fair to say it was just how a losing a earnings play looks. I took a ‘relatively huge’ loss compared to the account size and it’ll take a few months of normal returns to recover from the loss.
NVDA Earnings Loss:
Continue reading “Option Portfolio Update: NVDA earnings loser Opening Macy’s Iron Fly”
I like to browse Google Finance when I’m in the mood for financial news including investments, mergers, failures, winners etc..
Today I caught wind of an article from Seeking Alpha with the headline ‘S&P Getting Ready To Run 2550’ – I gave it my click and read how there were several reasons the S&P 500 is going to hit 2550.
Continue reading “Option Theory – Market News – Where the S&P 500 is heading..”
The market traded slightly up today ; starting the morning with a small down move.
The move wasn’t enough to close any positions at 50% max profit. By the closing bell things settled down finishing with a small gain over all.
Continue reading “A slower day with no position changes”