Options Trading Journey: THIS IS ONLY A TEST! Trad 22 GM skinny Iron Condor

A bad week won’t keep me down. Here is one I have been wanting to try for a while, so here it goes!

It’s a GM condor, but it is really narrow and set up way outside of the price where I bought it. Take a look:

GM_Skinny Iron Condor

This is a 21/21.5 and 20/19.5 expiring on 5/29. The upside to this is I sold it for $40 and I put up $50 in collateral. My max loss is $10 which is my loss cap for this tinny account. If GM stays on this sideways/slight down trend, price should hit that narrow condor at some point. I will sell this when it goes down to $30 for a $10 gain. I am interested in seeing how the premium of this trade acts since it is not a far out from expiration. Of course, it’s all for not if GM move up and never go near my Condor. I bought this Friday and look what happened:

GM _Condor_going wrong Huge gap up on Monday! Holy shit! Today it’s trying to break out of its sideways trend. Oh my!! Well the nice thing about this is I can just let it ride and see if it comes back down because my loss is caped. I really like that, it helps me keep my cool.

More trades coming soon. Why not you know!!!!!!!!!!

Oh ya, I am back to 4% trial because it’s more fun. This is week five and I have two trades expiring this week. If they both behave and stay away from my lines I will get $17 dollars this week. Here is what I need to keep 4%

End of Week 5: $364.00
Gain: $14.00

Let’s see!!!

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: Week 4 roundup, oh my!

Let’s keep this short and sweet. I had a bad week but I learned a lot! I learned a lot about myself mostly, and my drama creating brain! I took way more losses than I would have if I kept to my plan and stayed discipline and patient. So I will be solidifying my entry and exit strategies to make sure I am not making any emotional decisions. I have also done more research on adjusting cred spreads and condors that I think will help keep my losses in check.

With that said, I also had trouble trying to keep up with my old gains schedule and I ended up over trading. I need a plan that will help me use small gains and make them big so I will go back to the 4% a week, but now I only have $350 to work with. I will continue with week 5 but use gains based off 350 like this:

You started with: $350

End of Week 5: $364.00
Gain: $14.00

End of Week 6: $378.56
Gain: $14.56

End of Week 7: $393.70
Gain: $15.14

End of Week 8: $409.45
Gain: $15.75

Those look small but if I can get a rhythm and actually grow this time it will pay off. Here are some numbers if I keep up 4%

End of Week 45: $2,044.41
Gain: $78.63

Now look at a year after I hit $2,000

You started with: $2000

End of Week 51: $14,781.90
Gain: $568.53

It gets crazy after that! So being able to get the small gains now, losses included, will pay off huge if I get a system that works.

That’s all for now. Have fun trading!

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: My most embarrassing Trading day yet!!! Trades 19 -21

I bought BAC thinking it would continue it’s uptrend. It did not! That happens, but I freaked out, that shouldn’t happen. It gaped down and dropped below my 2x price, so I thought I would roll it to the next week and see what happened. I bought it for a big loss then sold the next week. That left me at a 10 dollar loss IF BAC went back up and in my target area. It continued to go down and I freaked out again and bought that one back at an even bigger loss. Then, as if that was not bad enough, I bought an out of the money Put on BAC. Guess what happened…. Just guess. BAC when up and up. I lost on all three trades.

Next, X! At least I had a good entry on X. It just went off the rails. Again, I didn’t get out on my 2x strategy I bought back when I just couldn’t take it anymore, and to make sure I wasted my money I bought an X put at a $5 strike that expires 12June. Who knows maybe this one will make a little money in the end.

X_Put 5_15

These two losses, because they were poorly managed, have wiped out almost all of my previous profits. Please learn from me, get a good solid entry and exit strategy and stick to it. Emotional decisions hurt!

Everybody says you have to manage your emotions to be a good trader. I though, ya, ya, I got it, but here I am. I have been working on solidifying my entry and exit strategies to take any emotional decisions out of the equation. There will more about entry and exit strategy and more trades coming up. First I need to take a deep breath and get my act together. I have to get back on an obtainable schedule. Fully leveraging my account this early did not work out well!

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: Oh No losses! And Trades 13 -18!

I tried to increase my trading volume and stick to weekly trades, but it didn’t work out to well at this point. I bailed out of  BAC, GM, and X at 2 times what I sold it for. So, I sold X for $10 and bought it back to close the trade at $23, I couldn’t get out of it for $20. The problem is, at the time I am writing this, GM and X are back in an area that could make me money on the trade. So, using a 2x strict close may be a problem. I may be able to remedy this by going out a little further out with expiration to get the same price for a further out strike price. I am trying that now, so I will have to see how it turns out.

The good news is even with those three losses I’m still up on the options selling strategy. Here they are:

F Butterfly: $10

F Butterfly2: $10

T Condor: $11

QQQ Condor: $9

GM Put Cred Spread: $13

T Call Cred Spread: $11

GM Call Cred Spread: -$13

BAC Call Cred Spread: -$15

X Condor: -13

INTC Put Cred Spread: $9

Remember I started this option sell project outside of the cash covered puts, so I started with $67 toward this strategy. Even though This only made $32 after the losses it is a 47% gain on the startup money in just a month. That’s huge! If I can keep that 70% win rate and I put my entire portfolio toward this strategy I might just get back on track. Of course keeping that win level with higher trade volume will be tough.

Here are the trades I’ve entered tying to keep everything moving.

PBR_Butterfly.png

I’m trying a Butterfly on PBR it’s center is 6.5 with wings at 7 and 8. I sold this for $37 and I am planning to buy it back before earnings. I am targeting $10 in profit.

T_Call Cred.png

Next we have a Call Credit Spread on T. It broke out of it’s trend and retested the old support line so I think it will move down or sideways for the next few weeks. I hope I didn’t get to ambitions with Strikes at 30/30.5. It expires on 22MAY and I sold it for $13.

x_condor2_6May.png

The truth is I should not have sold my first X condor but I adjust this one so i am a little more comfortable. The top is 9/8.5 and bottom is 7/6.5. This one expires on 15MAY and I sold it for $11.

GM Call Spread 7MAY.png

Here we go again. I guess I am expecting this to go down so I got another GM call credit spread. This time a 23.5/24 that expires 15May, and I sold it for $10.

QQQ Condor 7MAY.png

Ya, another QQQ condor. Here we have the top set at 232/232.5 and the bottom is 207.5/207. It expires on 22MAY and I sold it for $14.

INTC Condor 8MAY.png

Last for the set and trade number #18 for this journey is a INTC condor! Yeah! Top at $64/64.5 and bottom at 56/55.5 with an 12JUNE expiration. This is a little different but I sold it for $20 and I plan to buy it back for $10.

I have spent a lot of time working out a program that will help me decide what is is the  realm of possible. I like to set realistic goals and I will post them here when I work them out.

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: Trades 10, 11, and 12. That’s right I stacked them up this week!

I am using this week to figure out if I can up my trade volume on the options selling side and keep a good win rate. I started these trades yesterday but I may have rushed into one of them at least. Here they are:

BAC_Call Cred Spred 5_4.png

Bank of America call cred spread at 23/23.50 that expires 8MAY. This is the one I am worried about. I got excited when I saw if fell out of the support trend line, and I didn’t check my lines that I had drawn a few days ago. Now I am second guessing this trade since that tiny red bastard on this chart may not have been the fall out I was hoping for. I got $14 in premium for this play but we will see what happens. If BAC gaps up this morning I might be in big trouble.

My exit strategy is to close the trade when I get 2x ed (To close one of these trades I have to buy it back, so if the price of the contract doubles it is 2x and I will buy it back for a managed loss), but a big up gap will blow past the 2x in this case.  Next up is US Steel!

X condor 5_4.png

I was really excited about this X Iron Condor, it has a 7/6.5 put spread and 8.5/9 call spread as wings with an 8MAY expiration. I was so excited I forgot to take a pic when I bought it! X was trading around 7.40 when I got it, so it looked like a great setup. I didn’t expect this to go off the rails. I got $10 in premium for this but it may be another tough one if it keeps that up pace.

INTC put cred spread 5_4.png

This was my final Monday grab. In Intel 55/54.5 put cred spread again expiring 8MAY. It was looking a lot brighter at the end of the day so it fells a little less stressful at the moment.

I am really working on sharpening my entry, exit, and loser management strategy so I will hopefully be updating those as the week goes on.

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: Week 3 roundup! Let’s talk about the money!

Let’s start with the MONEY (oddly enough I’m in a good mood about it). I started with $488 three weeks ago, and I was aiming for 4% a week like so:

Started with: $488

End of Week 1: $507.52
Gain: $19.52

End of Week 2: $527.82
Gain: $20.30

End of Week 3: $548.93
Gain: $21.11

How did I measure up? Let’s look at totals:

Options Selling (Cred spreads, Condors etc): $64

Cash Covered Puts (Selling puts):  -$207.25 (unrealized loss)

Options Buying (Buying long puts and calls): $11

Let’s say tomorrow my USO position goes up and it’s worth $450 again. With that scenario then I would have $614 in my account and I would be way ahead. But, well, but…. REALITY Dammit!!! My USO position is actually worth $219!

USO_4_5_20.png

So, if I sell the USO shares tomorrow I will be way down. On the bright side though, I am getting a lot more comfortable with other option selling techniques. Cred Spreads, Condors, and Butterflies have helped me beat the weekly gain goals.

So what is next? Well, I am not 100% sure how I am going to play this. When I sold the puts on USO I was planning to sell covered calls against the 100 shares on assignment and wait for it to go back up, but USO changed the game. They did a reverse split and changed their portfolio holdings all during the 3 weeks I was under contract. With the reverse split my 100 shares got reduced to 12.5 and the the .5 got sold and will be added to my account. So I have 12 shares and I can’t sell covered calls on that.

Before I go on let’s look at what I am up against in terms of gains for the next 3 weeks:

End of Week 4: $570.89
Gain: $21.96

End of Week 5: $593.73
Gain: $22.84

End of Week 6: $617.48
Gain: $23.75

I won’t have the USO premium that I was expecting, so all of those gains have to come form the other options selling techniques I have been using. I only have $175 outside of the USO position. If my strategy holds up I should be able to continue meeting those gains. If my USO position returns back to $450 at some point I would be way ahead since I beat gains during this 3 week cycle not counting my $10 slush I add each week.

Now the question is how do I feel about the USO position, will it go up? I’m still thinking about that and doing a lot of research. In fact, I am doing a lot more research than I did when I first set up that USO position. Lesson learned!

I am strongly considering selling the position and realizing the loss. WHY? I hear you screaming. It’s simple, USO keeps changing the game and I don’t think I want to live like that anymore. Plus, I could use that money to add to my options selling strategy and I might have a chance of getting back on schedule.

I am also considering staggering my exit. It depends on what OIL and USO look like Monday morning. I may sell two shares Monday to increase my cash position enough to add another trade to the selling portfolio. I would then put a stop loss on the rest of the position, if it goes up I will continue to follow with a stop loss. Maybe I could recoup a little of the position that way without being scared of a bigger loss. The added benefit to this is it let’s me scale up my selling positions and make sure I can keep adding and finding good trades. I am sure there are plenty of good setups out there, but can I find them in the time I have available for trading?

“But what if it gaps down?”

Why do you got to be such an asshole, that hurts my big boy heart and I don’t want to talk about it.

I’ll make another strategy post to clarify how I am managing the selling part of my portfolio, which I need to name!! I’m thinking about “wings” but it’s too early for that. I also have to have $50 in collateral for each trade on the selling side, so I feel like that constant needs a name like “club” to stay with the caveman theme or “solo” if I want to go with a more intergalactic entrepreneurial bad ass feel.

Oh, now I’m rambling.

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: 9th Trade, GM Call Credit Spread

Ya, Ya, I’m a day late again. I sold this spread on Friday 01May20, have a look.

GM C_spread_Mod.png

This is a call Credit Spread 22.5/23 08MAY20 expiration that I sold for $14. In the pic above the pink line is my anchor price at 22.5. If GM goes to that price I will buy the contract back to close the trade. Note that this is a call credit spread but it is a bearish play. I believe GM will go down or sideways for the next few days after breaking below that previous support level (Just my opinion not advice). Earnings could get me, but I don’t really think GM has a lot of big up moves left right now. Time will tell as always.

I have a big decision to make on my USO trade, UH, so this is a short update. More to follow on the weekly roundup!

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: 8th Trade, AT&T Credit Spread

Oh No! I forgot to take a pic the day I set up this trade. Oh well, here it is at close on Thursday 4/30. Pink line represents my credit spread.

T Credit Spread 4_29.png

I put the trade on when price was around $31.5 so I was putting a lot of faith in my trend analysis. It worked this time. This is a 32/32.5 08MAY call credit spread, which is a bearish trade. I received $16 in premium for it. I plan to close this trade when AT&T hits the lower trend line I have in black. If it doesn’t go that low I close this before price gets back to $32.

Oh also, I closed my GM put credit spread, raked in a nice $11. The QQQ Condor is flying nicely so far! It expires today so as long as the market doesn’t take a super huge dump I will get $9 from that one.

And the big one. I get assigned on USO today! Yep, at around $200 lower then my strike price. That one hurts a little. Any predictions on USOIL or USO?

More to follow in the weekend roundup.

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

If you don’t have charts try TradingView!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: 6th and 7th Trades!! GM Credit Spread and QQQ Condor

This starts my third week of this options journey and everything but USO is going great!!! Let’s take a look at this week’s trades. If your wandering why I am only doing 1 week expiration it’s because I am worried the market is going to take a dump soon. There I said it.

First up a QQQ Iron Condor:

QQQ Condor.png

I know it is a big Tech earnings week, so I left the wings of my condor wide! You can see the bottom limit (208/207.5) in Yellow and the top (227.5/228) in pink. If QQQ closes between those beautiful links I walk about with $10 and closer to my weekly 4% goal below.

End of Week 3: $548.93
Gain: $21.11 <– this is what I need to make this week.

Next up is a GM put Credit Spread:

GM C_Spread.png

This is a 21.5/21 01MAY credit spread shown by the pink line that I sold for $14.This one was moving up nicely yesterday. With any luck I will be able to buy it back for a dollar or two before Friday. If that happens I will try to put that money back to work! Come on work money, work!

When you count in the $9.67 in USO premium from the cash covered puts, I certainly have a chance at reaching my goal this week. Time will tell!

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.

Options Trading Journey: Week 2 roundup, Some good news and some bad!

The good new is that outside of my USO trade I am doing great! I had a successful Iron Butter fly on Ford, and a successful Iron Condor on AT&T. Also, I had a put option that I was using to hedge my USO position that went well, if you consider it without the cash covered put position.

The bad news is the USO position had gone from bad to worse. USO restructured it underlying holding and it is going to do a 8 to 1 reverse split. It seems as if USO has restructured the way they hold futures to keep the price around or above $2 until they split then it will go up to near $20 a share and look a little more like oil prices. The problem is they are going to split next week and they will restructure their options contracts, which I am holding.

USO bad week

If I understand this right my strike price will change and the amount of contracts I am holding will change. When all is said and done at the end of the week when I am assigned USO shares I won’t get my original agree upon 100 shares for $4.5 a share. I think I will get 100/8= 12.5 shares and the fractional share will be paid in cash. I will still  pay $450 for 12.5 shares that will probably trading at $20 or lower.

I was expecting to take a hit at this point, but I was expecting to have 100 shares that I could use to sell cash covered calls and get some premium while it recovered. It does not look like this is going to be an option.

In the end, I am likely going to take a big lose, relative to a small account, on this position. However, I am convinced it is going to be a cheap lesson that will make me a better more profitable trader!!!! Yep, I’m crying a little on the inside!

Now, let’s go over the wins and the account. First, still pretending USO is worth $450 to show how I can, and will in the future, make 4% a week. Then I will show the account in reality and start thinking of how to rebuild and get back on schedule.

First here is what week two’s projections look like:

End of Week 2: $527.82
Gain: $20.30

Here is this week’s numbers:

$10 Monday = $10

USO premium (From cash covered put) = $9.67

USO Long put = $33 (38-5)

F Iron Butterfly = $15

T Iron Condor = $11

Now the losers:

WMT long put = -$4

FIT long put = -$6

Total = $68.67

Wow that was a big week! The USO long put was a hedge but I should have bought a lot more if I was truly hedging. I have been watching USO so closely I realized I was going to loose so I grabbed the put. It wasn’t enough to take care of the cash covered put though.

If the cash covered put is still counted as $450 then my Robinhood account is at $568.97! Now take a look at week 3 and 4 projections:

End of Week 3: $548.93
Gain: $21.11

End of Week 4: $570.89
Gain: $21.96

That would be great! I would be at week 4 levels, but here is the problem, USO took a big shit and reorged and doesn’t look like it’s coming back any time soon. So,,, Well, here is my actual Portfolio value: $381.95… OUCH.

What have I learned? Well, when a cash covered put or cover call position is going to occupy a huge percentage of your portfolio use a huge percentage of your research time to make sure it is a good investment! That’s all for now.

If you are just joining me, make sure to check out the strategy I am using for this journey. There you will find the links to the other trades.

Also, despite mixed press I am having good luck with Robinhood. If you want to join in the fun I would love it if you used my link to join.

Join Robinhood with my link!

Happy Trading!

One last thing. Nothing here is financial advice! These trades could fail miserably and that’s why I use an amount I am comfortable loosing.