Options Trading reflections (2017 Edition)

2017 was good Options Trading wise. Prior to it (2016), it was my actual passive investing activity that excelled, and earlier it was Forex. So, it looks like every year the "leading" component of my money that is at risk in the markets tends to change. But in 2017 the results I got from Options were fairly good.

The final performance number is +20.27%. The SPX benchmark was up 19.42%. Now, if we include dividends, then the number is 21.7%. Strictly comparing starting and ending prices, I outperformed the index. Comparing against the ETF that pays dividends, I under-performed it. Of course the pure SPY holder does not get that return due to broker commissions plus the ETF's management fees, but that aside, it is undeniable that the markets had a spectacular year for passive investors.

Options Trading reflections (2016 Edition)

As traders it is our duty to constantly revise our mechanics. I learn so much from this exercise every year and it for sure shapes my trading. That's how, for example, the Unbalanced Iron Condor idea was born from this article in November of 2014.

Of course, you always need to be aware that not because a particular strategy failed during a given year, it necessarily needs a re-design, nor do we need to make the radical "stop using" decision. The strategy that didn't work on a given year, may be your savior the next year. So, careful consideration is necessary before making final decisions. But with that said, there are always aspects of your track record that show you so much about yourself. Not to mention items that quickly stand out, screaming for a slight tweak.

December30 RUT Credit Call Spread

Today I initiated a December30 position in RUT:

Sold $RUT Dec30 1410/1420 Credit Call spread for 0.90 credit. Only half position.

— The Lazy Trader (@lazytrading) November 22, 2016

August SPX Credit Call Spread

Today I sold an August Credit Call spread in the SPX index:

Sold AUG $SPX 2210/2215 Credit Call spread for 0.50 credit.

— The Lazy Trader (@lazytrading) July 11, 2016

May31 SPX Credit Call Spread

Today a Credit Call spread position was entered:

Sold May31 $SPX 2125/2150 Credit Call spread for 2.50 credit to complete unbalanced Iron Condor with 1475/1500

— The Lazy Trader (@lazytrading) February 4, 2016

Closed December RUT Credit Call Spread

I closed the RUT 1235/1240 Credit Call spread today for 0.15 debit.
This trade had originally been entered on October 8 for 0.53 credit. The profit is 0.38 in 13 days or $76 for the model Portfolio.

November 2015, RUT Credit Call Spread

Yesterday I started a new position seeing a market going up too far too soon according to my system. It's not that the market can't keep going up. With less than 40% of stocks trading below their 200 Day Average it is obvious that there is plenty of upside room in the long run, but in the shorter term, which is all I care about, the market is overly optimistic at this point and should take a pause at least.

December 2014 SPX Iron Condor adjustment

Today I had to adjust the Call side of the December SPX 1750/1760/2070/2080 Iron Condor

Adjusted Call side of Dec $SPX 1750/1760/2070/2080 to 2110/2115
— The Lazy Trader (@lazytrading) November 11, 2014

Alternatives for selling out of the money Credit Spreads

No Weekend Portfolio Analysis for today. Instead, I'm going to do something different as I think a trader should go back to the drawing board from time to time, revise what he's been doing, learn, improve.

Here's a breakdown of my trading activity by strategy. I separated the results of Iron Condors, individual Credit Put spreads and individual Credit Call spreads for the last 12 months of trading activity: from December 2013 to November 2014. 

Second November $RUT Credit Call spread adjustment

Well, another tough day for my November positions. I had to close the RUT 1180/1185 Credit Call spread as it reached the 30% probability of being in the money level.

Closed $RUT1180/1185 CCS for loss. Sold $SPX 2050/2060 for 1.05 credit. All Nov. options.
— The Lazy Trader (@lazytrading) October 30, 2014

November 2014, RUT Credit Call Spread adjustment

Today I had to make an adjustment to my infamous RUT 1150/1160 Credit Call spread.

Closed $RUT 1150/1160 CCs for 3.30 debit (Initially received 1.00 credit). Sold 1180/1185 CCs for 0.55 credit
— The Lazy Trader (@lazytrading) October 28, 2014

November 2014, RUT Credit Call spread

The market's not overbought. However, today I sold a Credit Call spread on RUT

I'm in $RUT Nov. 1150/1160 CCS for 1.00 credit as a hedge against my 3 Put spread positions.
— The Lazy Trader (@lazytrading) October 14, 2014

Closed March SPY 191/193 Credit Call spread

Today I closed the March SPY 191/193 Bear Call Spread for 0.33 debit.

Closed March $SPY 191/193 Call spread for .33 debit. That's a 0.17 loss ($187)
— The Lazy Trader (@lazytrading) March 6, 2014

RUT trades during market rally (March 4, 2014)

These were my trades yesterday March 4.

First I sold a RUT 1240/1250 Credit Call Spread, probably a little early as RUT kept going up all day:
Sell 2 RUT March 1240 Call @3.00
Buy 2 RUT March 1250 Call @1.60

April 2014 RUT Iron Condor plus a March SPY Credit Call Spread

Today I entered the first trade of the April options expiration cycle using RUT as my vehicle of choice:

Buy 2 RUT April 1020 Put @4.20
Sell 2 RUT April 1030 Put @4.60
Sell 2 RUT April 1245 Call @3.20
Buy 2 RUT April 1255 Call @2.20

SPY Credit Call spread (pending GTC Order)

Today I am leaving a pending order (Good Till Cancelled) on an SPY Bear Call spread.
The order is for the March SPY 192/194 Credit Call spread and 0.15 credit.

March 2014, SPY Credit Put Spread and management of the RUT Iron Condor

Today I opened an SPY Bull Put spread using March expiration options.
At a point where only 28% of stocks were above their 20 SMA and the McClellan Oscillator was below -170, I figured we were near a Bearish extreme. This is the trade:

Closed 2nd January 2014 SPX Bear Call Spread

Today I got out of the January 2014 SPX 1880/1885 Bear Call spread.
I traded this spread twice. First as part of a 1645/1650/1880/1885 Iron Condor. I closed it when it hit 75% of its max profit. Then the market had a year end rebound and I entered the position again for 0.50 credit in this case.

Second $SPX Bear Call Spread of the January 2014 expiration cycle

I opened an SPX 1880/1885 Bear Call spread today for 0.50 credit

Filled on $SPX 1880/1885 January Credit Call spread for 0.50
— The Lazy Trader (@lazytrading) December 23, 2013

Closed SPX 1880/1885 Bear Call Spread (January 2014 expiration)

Today I closed the Call side of the January 2014 SPX 1645/1650/1880/1885 Iron Condor

out of $SPX 1880/1885 January Bear Call spread for 0.15 debit. Net profit 0.45, with 30 days to expiration. Will reload on a market rebound
— The Lazy Trader (@lazytrading) December 17, 2013