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.
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.
This post covers today (no position changes) and yesterday (6-26-17, one opening trade).
Yesterday a few minutes after market open my portfolio was down about $30. Mainly based on SPY and BA going against my position.
Around 9am my option portfolio was down $40 dollars in value for the day and down $90 overall. At this point I thought ‘hopefully this sharp down move will do what the market has seemed to do the last 60 days and end up either back at $0 or slightly reverse in the last hour of the day’.
The portfolio actually reversed early and sharply to being positive $48 for the day. Here it is at 11am
I also opened the 217219 call spread for August 53 days away for $61. This makes my break even $217.61
The ceiling was almost off the top of the 3 month chart (blue line).
Here is how the portfolio ended up yesterday; +$82.50
I think it was one of my best days from the portfolio value gained perspective.
I was +$7 at 8:59, +$4 at 10:49 and ended the day up $50.
Now the options portfolio is collecting $514 in credit from 7 of the 8 positions; We have 1 debit spread in FXE with a long time work
Here is my current positions and greeks.
Net liquidation and Buying Power:
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.
Like I said a couple days ago – I won’t ever be too upset if a trade doesn’t work out but had plenty of time to. XLE had 43 days to work. I only wish I could have closed it closer to where I wanted to mechanically close it.
Duration: 43 days
Buying power reduction: $75
Profit after fees: -$35.58
Profit as a percentage of buying power reduction: -47%
I only have 2 more 16 day positions left and only 1 more $1 wide position. XLE cost me $8 more than it should have if I would’ve caught it earlier yesterday.
I had no position changes; but if things don’t look a bit better in energy tomorrow I’ll be closing one of my last $1 trades a lose (XLE)
Here is my net liquidation and buying power available .
I’m collecting $508 in premium (now worth $672) for a net value loss of $164.50. I’m collecting the $508 in 7 positions, 2 being $1 wide and 5 being $2 wide..
3 positions have 17 days until expiration, the other 4 positions have 52 days.
Today I am closing out a loser in SPY. I’m actually ‘rolling’ this trade cause I’m also opening another SPY position, so you’d say I’m rolling out in expiration into the JULY monthlys and rolling up the strikes on the call spread. It’s the same thing I just consider every trade a separate position when I put it on.
Here is the loser
I’m not going to be too upset when a trade doesn’t work out after being on for 38 days; I feel like it had plenty of time to work.
Duration: 38 days
Buying power reduction: $69
Profit after fees: -$38.58
Profit as a percentage of buying power reduction: -56% Continue reading “Options Blog – Closing SPY a loser, XOP Winner, Opening SPY, SBUX”
Today I opened a Starbucks Call Spread. I sold the $62.50 July call and bought the $65.00 July call for a net credit of $65. These contracts have 58 days to expiration.
The orange bar represents the expected move. Within a few hours of making the trade Starbucks gained $.65-.70 and the trade closed down $17.50
Options Portfolio Overview with Greeks (Delta, Theta and Vega)
Options net liquidation and Available Buying Power
I have collected $240 so far in the back month’s cycle and I’m looking to collect about $90 more (about 2 more positions) .. I’ll also collect a bit more if some of the 6 positions remaining in the front month can be closed.
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”
The market had a rebound from yesterday – although it wasn’t a full recovery. Below is a 5 day chart for the overall market.
Today I woke up and my GTC (good ’till canceled) order to buy back my TLT spread for 50% of maximum profit had executed at 2 minutes after the opening bell. Here is the TLT winner and stats.
Buying power reduction: $73
Profit after fees: $10.42
Profit as a percentage of buying power reduction: 14.2%
That brings this cycle’s record to 4 winners and 5 losers; Down -$151 (-7.7%) over the high water mark. Tomorrow is the last day of the cycle and I report on May 20th. This will be my second report.
I have until Friday to make any closing trades for this cycle. Today there were no position changes.
The market started up then came back down staying slightly down but mostly unchanged through the close of the bell; The Nasdaq remained higher for the day closing strong..
The story of the day was the weak dollar; This hurt my FXE iron condor – wiping out $21.50 in value / the position is now down $6.50 from being up almost $15 yesterday. Continue reading “Options Portfolio Update: No position changes – FXE to the moon!”
I didn’t have much time to watch the market – Monday’s are busy. Here is what the market did today, went up and this time it stayed up.
The Market 1-day Chart.
This sharp upward movement and staying there didn’t help my position in EEM – I closed EEM for a Max+ loss. Continue reading “Options Portfolio Update: Closing EEM a loser”
Today I closed 1 winner and my second losing earning play. This one was a lower probability Iron Fly. I took the max loss of $60.
Continue reading “Option Portfolio Update: Second Earnings loser – Getting back mechanical – Closed 1 winner”
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”
The market opened and stayed up eighty percent of the day then as it seems to have done the last part of the day it reverses itself and ends up about unchanged. This kind of cyclical and closing unchanged market could be a contributing factor to the current low level of volatility in the market.
My First Earnings Play:
Today I opened the following Iron Condor. A Iron Condor sets a floor and ceiling price level and when selling you would want the underlying to stay in that price channel. I opened a IC using $3 wide strikes and played the strikes just inside the expected move on both the upside and downside. Continue reading “Options Portfolio Update: First Earnings Trade, First $3 Wide Strikes, Second Iron Condor”
Today we had decently sideways market. The market was down for most of the day then broke back to even.
Continue reading “Option Portfolio Update – Sideways Market – Good Gain in the Portfolio”
The market opened slightly own but mostly unchanged – remained that way for most of the day then in the last hour moved slightly up enough to end positive – overall a unchanged day.
I was able to close out a 50% winner; although it was tiny cause I didn’t collect anywhere near my target of $33. I collected $20 and closed it for $10 profit before fees. Continue reading “Options Portfolio Update – Closing a winner EFA”