My Options Trading Unlocked – Newsletter 10 Sep 23

Newsletter – My Options Trading Unlocked : Insights for Tomorrow’s Profits

10 Sep 2023

You have a trading plan? A trading strategy and profit goals ?

Read on, and I will tell you about mine !

My goal is to share my journey and help you make a profit from options trading. I also write about my thoughts related to options trading and finance in general. And everything I think you may be useful to share about the stock market for the week ahead as an option trader. Every week I report about the status of my portfolio.

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1. Overall Market Overview

When I prepare for trading or following the market and my positions, I focus on two aspects : the general trend of the market with the indexes, mainly the SPX and the volatility of the stocks with the VIX. The reason why is clear in my mind : the general trend of the market and stock volatility are essential for options traders because they directly impact options pricing, influence trading strategies, and offer opportunities for risk management and profit generation in the dynamic world of options trading.

And then again, I don’t want to over-analyse too: so SPX trend and VIX levels are not far away.

SPX Chart – SPX 4457 $

Markets were closed on Monday due to Labor Day.

Market outlook for next week : Nobody knows anything so I am not trading direction.

VIX Chart – VIX USD 13.84

I was actually hoping to get a rising VIX slowly back up to around 20. Higher VIX means higher options prices and gives us option sellers the possibility to have a bigger return. But it is clear that it wasn’t going to happen last week. Maybe next week?

2. TOCF Portfolio Weekly Recap & Trading Plan

a. My actions last week (04 Sep – 08 Sep 23):

Closing Positions :

• 05 Sep 23 : Closing $FSR for a 53 day 84% return : BTC 10x Puts $6 for $0,28 resulting in a net P/L of $640,00 with a ROC of 12,31% and an Ann ROC 84%
• 05 Sep 23 : Closing $COIN for a 74 day 5% return : BTC 01 STD $85 for $15,86 resulting in a net P/L of $187,00 with a ROC of 1,05% and an Ann ROC 5%.
• 06 Sep 23 : Closing $LYFT for a 6 day 245% return : BTC 1 CC for $0,11 resulting in a net P/L of $12,00 with a ROC of 4,08% and an Ann ROC 245%; Closing at 50% Maxprofit after 6 days. A small winner but I will continue to keep managing these mechanically.

Opening Positions :

• AAPL – 07 Sep 23
  • Opening a new position in $AAPL:
  • STO 1 Short Strangle 155P/190C, ExpDate 20/10/23, BP $2000, IVR 31,2, SpyB_Delta -5 with PoP 81% for a net credit of $2,40

Adjusting Positions :

None ! This week I didn’t have to roll any position.

b. Results week (04 Sep – 08 Sep 23) & currently open positions:

Here is an overview for all accounts of the results of last week:

I was able to close my largest position $FSR for a nice winner! Almost reaching my $800 September trading goal (but this goal will get adjusted – see below why)

Last week I wrote that I realised that I was underperforming and that I was going to rethink my expectations in monthly profit target and strategise and so on. This trading goal setting has been a priority for myself this whole week. I took the time to write my first strategy draft, as a navigation tool to guide my trading. It is a free read for everyone here. Any thoughts or comments you may have on this trading strategy document, please don’t hesitate to email me or write them in the comments of the page.

c. My Trading Plan for upcoming week:

At portfolio level :

• The MX account is in euro en the TT accounts in USD. Sum of the values of the 3 accounts = 71,142.00 USD (or 66,468.00 Euro)
• For three weeks now, that Theta of both Tastytrade portfolios needs to be increased; next week preferably. The theta for Mexem has just dropped 0,1% Net Liq and it requires, looking out to new positions with keeping an eye on margin requirement (just above my max allocation of 30 %). Especially with my (renewed) trading goals in mind!
• The delta of the MEXEM account has come perfectly. I have amost a 1:2 ratio with long delta/theta. It is at 0,6 at the moment. I will look to keep this ratio intact, and even improve it by pulling back up my theta via new positions and try to adjust when necessary.

Most of my open positions are still in the red but with my positive portfolio delta, have recovered nicely in most of the positions this week : the unrealised P/L is back down a bit to ($1683).

At individual stock level :

• I will continue to keep both PYPL, keep selling cc on AMD and LYFT.
• Keep an eye on IWM
• The other positions seem in relatively good shape at the moment

3. Weekly Watchlist

My special attention remains for the coming week : AAPL, SOFI, AMD (close covered call), MARA and LYFT( to add covered calls).

4. Other stuff & info

I have had a very busy and productive week:

• I redesigned the Trade Results Page a bit with a historic graph of my trading results of the last 3 years.

• I have added the My Approach to a methodic Options Trading Strategy and Profit Goals. I am really hoping to exchange some thoughts with you all on this topic, so leave me your thoughts in the comments of that page!

• And I have continued adding posting about 3 new detailed demo videos about this spreadsheet on my Youtube channel, about the “All In Options Trading Journal Spreadsheet” – Available in our TOCF shop for less than the price of one winning option trade (!) and with a 30 day money back guarantee.

• I will pick a date soon to do a Live Q&A session for all the users, with those interested, so if you are let me know in the comments below or shoot me an email.

If you are not a Free member of our discord yet : In our discord channels, we team-up with other like-minded option traders, with the aim to support each other and share valuable insights and ideas. I provide live comments, trade alerts, educational info, tools and spreadsheets via our discord room. Join anytime here: http://discord.gg/cGW6xH4RNT

I hope that providing some insights in my trading and my thoughts, will trigger some thoughts and maybe ideas that will help you with your trading and helps to become an even more profitable options trader. Don’t hesitate to contact me to talk options.

Thanks for reading the TOCF Newsletter and happy trading!

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Let’s generate cash flow together !

P&K