Options Blog Update – Closing BABA a loser – A small winner in USO debit spread

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

alibaba_Closing a loser 7-13-17

Here are the statistics of the trade.

Duration:  14
Credit: 50
Buying power reduction: $150
Profit: -$60
Fees: $2.58
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%

small uso options winner 7-13-17

Here are the stats for this USO options trade:

Duration:  5
Credit: -$35
Buying power reduction: $35
Profit: $9
Fees: $2.58
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.
closing trades so far 7-13-17

All my positions and basic Greeks.

all positions and greeks 7-13-17

Risk Graph for the whole portfolio

options portfolio risk graph 7-13-17

Buying power and net liquidation for the options portfolio

net liquidation and available buying power - 7-13-17

 

Options Portfolio Update – closing 1 loser opening 1 debit spread

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.

closing boeing a loser - 7-11-17

Boeing options – Trade Stats

Duration:  20 days
Credit: 60
Buying power reduction: $190
Profit: -$60
Fees: $2.58
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

FXE debit spread open 7-11-17

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.

option positions and greeks 7-11-17

Here is my net liquidation and available buying power.

net liquidation and buying power - options 7-11-17

 

Options Blog Update – One Position Change – Closing a entry error for a small loss

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

FXE closing a mistake 7-10-17

Today was a slight down day with the portfolio being down $7.

Current Options Portfolio

all positions and greeks - 7-10-17

Net liquidation and available buying power

liquidation and buying power - options - 7-10-17

 

Options Portfolio Update – Closing MSFT winner opening TLT Iron Condorm USO Debit Spread – Accidental Fat Fingered open

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

msft small winner 7-8-17

Stats on this small winning option trade [MSFT]:

Duration:  45
Credit: 75
Buying power reduction: $175
Profit: $11
Fees: $2.58
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:

TLT open iron condor 7-8-17

$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.

uso chart 7-8-17

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.

FXE_Debit_mistake

Here is my current open portfolio

current open portfolio 7-8-17

Net liquidation and buying power available.

net liquidation and buying power 7-8-17

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.

closing trades so far 7-8-17

 

Options Blog – Update – Opening 2 positions, closing a small winner

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

QQQ Iron Condor close for small winner 7-5-17

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.

QQQ Iron Condor re-open smaller risk profile good credit

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.

Duration:  14
Credit: $206
Buying power reduction: $294
Profit: $21
Fees: $5.16
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.

spy credit call spread 7-5-17

Here is a SPY chart (3 month, measured in 1 day) .. marked with the ceiling I set.

spy chart with ceiling for call spread 7-5-17

The overall portfolio had a down day losing about $113 in value.

positions and greek 7-5-17

Here is the current Net Liquidation and Buying Power available.

net liquidation and buying power - 7-5-17

 

 

Options Update – closing 2 winners; Portfolio now has positive value

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.

iwm debit spread winner 6-29-17

Option Trade Stats:

Duration:  1
Credit: $-80
Buying power reduction: $80
Profit: $20
Fees: $2.58
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 credit spread winner 6-29-17

SPY option trade states

Duration: 35 days
Credit: $64
Buying power reduction: $136
Profit: $25
Fees: $2.58
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.

portfolio positions and greeks 6-29-17

Here is my Net Liquidation and Buying Power.

net liquidation and buying power 6-29-17

The portfolio total net liquidation is looking good.

Options Blog Portfolio Update – 2 new opening positions BA and QQQ

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.

boeing 3 month graph with my break even 6-21-17

and here is the fill for the order.

boeing call spread - fill - 6-21-17

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”

Options Portfolio Update 5-21 thru 6-20 – a winning month

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

status_chart_6-20-17

Here is my current portfolio

options portfolio 6-20-17

Current net liquidation and available buying power.

net liquidation and buying power 6-20-17

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.

Options Blog – Closing Target a Winner & Opening MSFT, FXE, EWZ

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

Closing TGT Winner 5-23-17

Trade Stats:
Duration:  6 days
Credit: $50
Buying power reduction: $200
Profit: +$25
Fees: $2.58
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”

Option Portfolio Update: NVDA earnings loser Opening Macy’s Iron Fly

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:

nvda earnings loser 5-10-17

Continue reading “Option Portfolio Update: NVDA earnings loser Opening Macy’s Iron Fly”

Option Theory – Market News – Where the S&P 500 is heading..

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..”