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BookingAlpha Option Trading Advisory

Monday, October 2, 2017

Options Trading Monthly Digest (September, 2017)

Time to reflect Options trading results for the month of September. This update includes positions that were closed throughout the month and the Year To Date balances of each Options Trading Strategy.

Hopefully these monthly updates will provide readers with confidence and serve as an authentic guide of what can be achieved with a realistic and sustainable approach to the business of Selling Options.

It's important to realize that we don't need to double our accounts every year, which entails unsustainable risks. Relatively small portfolios can consistently generate $400, $500, $600 a month, which is meaningful help in the budget of the average family. Whether you want to trade for a living or only as a side activity for supplemental income, you are only truly limited by your own will. How much are you willing to dedicate to studying and training hard? That's all there is to it. And while there is absolutely no guarantee that anyone will achieve any arbitrary numerical return in the future, the fact is: the power of compounding is truly remarkable and can do wonders even with small amounts of money.

Positions that were closed
(Each position links to the article where both entry and exit are discussed)

20 RUT 1250/1240 Credit Put spreads expire ($1,200 gain)
20 IWM 140 long Calls 0.18 debit expire ($360 loss)
The Put side was an adjustment to an Elephant position. The Call side was part of the original Elephant. Net-net, there was a $840 gain here in September.

SPX - Oct 2540/2545 Credit Call Spread
Originally part of an Unbalanced Iron Condor. A $440 loss was taken here during the market rally. It was a small loss compensated by a long SPY position.

SPY - Dec 253 Long Calls
This was a small speculative play initiated during an oversold condition on August 18 @1.50 debit. Closed exactly one month later @3.04. Nice return on investment here and $462 in dollar terms to compensate for the loss on the Credit Call spread position described earlier.

RUT - Oct 1470/1480 Credit Call spread
IWM - Oct 148 long Calls
The Call side of the October RUT Elephant failed after RUT's monstrous rally in September. Fortunately, Elephants were designed to avoid headaches during market rallies. Even with this net $400 loss, the Credit on the Put side is greater ($952) and overall, the Elephant will eventually result in a net winning trade.

Net gain of $462 for the month. $236 after commissions.
In percentage terms: only a 0.21% growth for the whole account after commissions are factored in. 
A mediocre month, to be honest. But at least a positive one even though most things went wrong, and that's a nice feeling.

The month of October will be crucial in determining this year's results. For now, we have a couple of very safe positions with expiration in a few days:

Those two should be winners at expiration. To them, we'll probably add gains or losses from the November SPX - 2315/2325/2575/2585 Unbalanced Iron Condor before the month is over.

Year To Date balance per strategy
*Note 1: Commissions not included in the above table.
*Note 2: October positions have partial losses included here but should end up being winners in the end when Put sides expire this month.

The S&P closed the month up 12.53% for the year, whereas my performance at the end of September is +13.15%.

Thanks for reading.

If you are interested in a responsible and sustainable way of trading options for consistent income and a smooth equity curve, consider acquiring LTOptions, my options trading system to the last detail.

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