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BookingAlpha Option Trading Advisory

Thursday, May 4, 2017

Options Trading Monthly Digest (April 2017)

Time to reflect Options trading results for the month of April. 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)

SPX - Apr. Credit Put Spread 2180/2175
Taken all the way to expiration for a $960 gain. This spread was originally part of an Unbalanced Iron Condor, whose Call side portion was closed in March for a small gain. Overall, the Unbalanced Iron Condor position returned $1,200  ($240 of them from the Call side in March)

RUT/IWM - Apr. 1260/1270/1450/1460/129/146 Unbalanced Elephant
Expired for the $1,396 max gain  that was possible in the position. No adjustments or anything. It was an easy position to ride.

So, those were the two positions with April expiration.
In addition to the two above, I also took partial losses on the May RUT Elephant:

RUT - May 1450/1460 Credit Call spread
IWM - May 146 Long Calls
This was the Call side of what originally was a May RUT/IWM1230/1240/1450/1460/126/146 Unbalanced Elephant. The defense line to the upside was hit and that triggered the decision to close the Call side. Net loss of $716. However, the Put side is still in play and it looks like a sure winner at this point. With a credit that is greater than the loss suffered on the Call side, the original position, overall, will end up being a net small winner despite the loss on the Call side. 

Net gain of $1,640 for the month. $1,406 after commissions.
In percentage terms: a small 1.36% growth for the whole account when commissions are factored in.

Year To Date balance per strategy

*Note:  Partially closed Unbalanced Elephants have not been included in the above table.

The S&P closed the month up 6.49% for the year, whereas my performance is now +4.82% options trading wise. At this pace, the market would finish the year up almost 20%. Of course, anything is possible, but in my opinion that is unlikely to happen. Little by little we start approaching the summer. Hopefully dull, and sideways to weak. We'll see.

Looking at May expiration, there are two very healthy looking positions that should provide a +2% boost to the portfolio. There is also a chance to close one of the June expiration positions for additional gains. No complicated position exists at the moment. So, I'm optimistic that May is going to be a solid month.

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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