Weekly Trade Update - Week 37
Hi Steemians,
here is my weekly sample portfolio update for Friday, December 21st, 2018.
This has been a pretty tough week.
Markets keep crashing and volatility expanding, so not the best times for a premium seller.
Managing XLE Position
I had to go inverted on Monday on my Jan 66 straddle
My overall credit on this position was now $6.52.
I also added a call ratio spread to flatten out my deltas.
I closed this ratio spread for a $50 profit per one lot on Wednesday.
Today I had to close my inverted strangle and eat a $374 loss per one lot, since my itm short put had almost no extrinsic value left and was in danger of getting assigned.
Several Trades in SPY
During the whole week my deltas got longer and longer and since rolling down my calls wasn't enough, I did several short delta trades in SPY.
1. Closing Aggressive Short Delta Strangle in SPY
Made a profit of $75 per one lot on this one.
2. Call Ratio Spread in SPY
I opened this trade on Monday.
I closed it for a profit of $169 per one lot on Wednesday.
3. Second Aggressive Short Delta Strangle in SPY
I opened this one on Thursday and closed it today for a profit of $105 per one lot today.
So my combined profit on SPY for the week is $349 per one lot, which definitely helps to mitigate the losers I closed this week.
Closing KRE Position
I had to close my KRE position (inverted strangle plus extra short call) to avoid assignment on my put.
$349 loss per one lot.
Definitely a huge loser for such a low priced underlying.
IWM
On Tuesday I sold a call ratio spread in IWM to flatten out my deltas.
I closed this position on Wednesday for a profit of $106 per one lot.
On my inverted strangle I had to roll down my calls further on Wednesday.
My overall credit was now $14.54.
Today I had to close the position, since the short put was in danger of getting assigned.
A huge loss of $8.71 per one lot.
The $106 winner from the ratio spread this week and the $131 winner from the ratio spread last week help a little bit to mitigate the loss.
QQQ
I also had to roll the call down further in my inverted strangle.
Together with the short call I sold last Friday the overall credit on my QQQ position is $19.73.
At the moment this position is down $5.33.
The short put still has some extrinsic value left and should not get assigned over the weekend.
New Ratio Call Spread in QQQ
Since my deltas in QQQ are too long, I added the following ratio call spread to reduce my deltas.
No special profit target here.
It is just a hedge for my QQQ position.
I'm hoping to scratch my position some time next week and then I will take a break from trading until the first trading day in 2019.
This has been a pretty tough week and I definitely took a hit.
But aggressively managing my positions and adding short deltas on the way down definitely helped to reduce my losses.
Compared to what my portfolio would look like, if I was just long SPY like most passive investors, it wasn't as bad as it looks like.
This is now the time to learn how to trade options instead just being a passive investor.
So read my books if you are interested in becoming an active options trader.
Books Update
My second book which is available for free on Amazon, Google and on Apple for the rest of 2018 has been downloaded 400 times so far.
Thanks to all my readers for downloading it.
If you like it, you would do me a great favor by writing a short review on amazon.
To fully understand my new book, you need to understand all the basics, which I describe in my first book:
It is still available for huge discount on Google Play, so buy as long as it is still cheap.
You can also buy it on iTunes, Amazon or Barnes and Nobel.
Have a great weekend and Merry Christmas!
Stephan Haller
Legal disclaimer: These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown above are for educational purpose only.
Klingt nach viel Streß. Wäre es nicht einfacher, die Dinger selbst zu halten, anstatt Optionen darauf? Wäre nicht zumindest die Lebensqualität besser?
Der Russell 2000 Index (IWM) hat seit seinem Hoch im Juli etwa 27% verloren.
Meine Bilanz in dieser Zeit in IWM ist deutlich positiv.
Wenn man deutlich bessere Ergebnisse, mit weniger Risiko und deutlich niedrigerer Portfoliovolatilität erreichen will, muss man halt etwas Arbeit reinstecken.
Meine Lebensqualität leidet in keinster Weise unter meiner Tätigkeit als Trader.
Ganz im Gegenteil. Es macht einen Riesenspaß.
Das ist gut und freut mich für Dich!
Ich versuchte nur was Negatives zu finden, um meine Faulheit zu rationalisieren, dass ich mich damit noch nie intensiver beschäftigt habe :)
Fang am besten mit meinem zweiten Buch an, noch ist es kostenlos:
https://www.amazon.com/dp/B07KVNVQXZ
https://play.google.com/store/books/details?id=9Zh7DwAAQBAJ
https://itunes.apple.com/us/book/id1444520033
Ab 2019 nicht mehr.
Wobei man sagen muss, dass das Traden schon ein Virus ist, mit dem man infiziert sein muss. Die meisten Menschen sind wohl gegen diesen Virus immun.
img credz: pixabay.com
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