Options Portfolio Update – Rolling up Iron condors QQQ and TLT

This update covers trades made on 7-17 and 7-18. I rolled up the ‘untested’ put side of my QQQ Iron condor. This means the price of QQQ has risen to challenge my call side. The idea is to roll the put side up to collect more credit, while taking some profits at the same time.

Initially I sold the 131/19 puts portion of the iron condor for $32 I was able to buy them back for $8 after $2.58 in fees that left a profit of $21.42. I then sold the 139/137 put spread in the same date range (Aug 18 / 31 days) for $36.

Here are the trades.

iron condor put side roll up 7-19-17

The new QQQ Iron Condor

new qqq iron condor 7-19-17

I’ve now collected a total of $64 for the current open Iron Condor and have taken $21.42 to the bank. Grand total of $85.42 ~ the goal would be to close the current position for 50% of the current max profit (50% of $64 = $32)

I also rolled up the put side on my TLT Iron condor. I sold the 121/117 put for $75 initially. I bought it back for $25 meaning $50 profit – 2.58 fees. $47.42 was taken to the bank. I then re opened the puts at higher strikes; I sold the 123/120 put spread for $57.

Here is how the new iron condor looks

new TLT iron condor 7-19-17

The current open Iron Condor is collecting a total of $128 and I’ve taken $47.42 to the bank.

Although I was able to take some profits it was because these positions were challenged to one side of the iron condor. Ideally of course positions would require no adjustment; by adjusting the put side up the trades became less likely to succeed (now the ceiling and floor I set for the price is in a tighter range).

New development: I made my first naked trade.

I sold the $32 call option x 1 contract on MU for $141 the break even is the price + credit received so in this instance my ceiling is $33.41 the current price is $31.51 I show a 67% chance of profit.

My cushion between break even and current price is $1.90 6% away from the current price.

This naked trade required about $640 in buying power. It’s a bit out sized for my portfolio but I’m still learning; it’s also within my risk tolerance on a personal level.

Here is my current Options Portfolio. It’s not looking the best but still has about a 61% chance of profit. My biggest error is the debit spread(s) in FXE I need to remember this lesson and try not to be a premium buyer – my nature is more a premium seller.

portfolio positions and greeks 7-19-17

Net liquidation and buying power of my Options Portfolio

net liquidation and buying power - options trading blog

Here are the closing trades to date for this cycle.

closing options trades to date 7-19-17

 

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 – Portfolio Update – Closing a Winner TLT

The market had a rebound from yesterday – although it wasn’t a full recovery. Below is a 5 day chart for the overall market.

5 day stock market overview chart - 5-18-17

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.

TLT winner - 5-18-17

Duration: 24
Credit: $27
Buying power reduction: $73
Profit: +$13
Fees: $2.58
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.

 

 

Options Portfolio Update: First Earnings Trade, First $3 Wide Strikes, Second Iron Condor

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.

market overview 5-9-17

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”

Options Portfolio Update – Closing a winner EFA

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.

market overview 5--5-17

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”