My Options trading Unlocked - Newsletter 12 Aug 23

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

12 Aug 2023

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

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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 om the market with the indexes, mainly the SPX and the volatilty of the stocks with the VIX.

SPX Chart – SPX 4464$

The SPX continued the down move and closed the week 1,1% lower, moving towards the 50 day average, where it may (or may not) find support. It looks like a continued downtrend next week is more likely, so we need to keep an eye on our deltas.

VIX Chart – VIX USD 17.09

The VIX showed a typical candle-sign on tuesday indicating an upcoming down movement, what also happened. The VIX had after a spike on Tuesday just above 18, bout finally closed the week 7,31 % down back under 15. VIX is still relatively low, which impacts the number of positions I can take at this moment.

2. TOCF Portfolio Weekly Recap & Trading Plan

a. My actions this last week :

Closing Positions :

Closing $LYFT Covered Call 13 for a 70 day 28% return, for $0.08, resulting in a net P/L of $16,00 with a ROC of 5,54% and an Ann ROC 28%

Opening Positions :

09 Aug 23 : Adding a small position to portfolio, opening a new position in $SOFI : STO 2 Short Naked Put 9, ExpDate 15/09/23, BP $944, IVR 2,6, SpyB_Delta 4,58 with PoP 61% for a net credit of $0,70

Adjusting Positions :

07 Aug 23 : Rolling my $COIN STR position : rolled down the call from 110C to 100C for $1.09 credit, total credit received is now $5.52 for the 85P/110C strangle, theta = $19, DTE = 39
08 Aug 23 : Adjusting both of my IWM positions: rolling down the untested side and lowering my deltas
- Rolled down the call to 202C for $0.56 credit, total credit received is now $3.10 for the 192P/202C strangle.
- Rolled down the call to 202C for $0.65 credit, total credit received is now $3.84 for the 190P/202C strangle.
09 Aug 23 : Rolling my $SOFI Strangle 10P/12C position into a naked put : closed the call for $0.08 debit, keeping the 10put for a $1.08 credit received.
11 Aug 23 : Rolling my $COIN Short Strangle 85P/110C position : rolled down the call to 100C for $1.11 credit, total received credit now $6.63
11 Aug 23 : Rolling calls in $IWM for the second time this week :
- Rolling my $IWM Short Strangle 190P/202C position : rolled down call to 198C for $0.90 credit, total net credit received now $4.74
- Rolling my $IWM Short Strangle 192P/202C position : rolled down call to 198C for $0.90 credit, total net credit received now $4.00

b. Weekly results & currently open positions:

Here is an overview for both portfolios:

Most of my positions are still in the red and need improvement over time. I am positive

My monthly trade results are also available on our website – Monthly Trade Results.

b. My Trading Plan for upcoming week:

At portfolio level :

I will report my two Tastytrade portfolios separately as from now, planning to use the “WH” account for wheel strategy demo purposes.
The theta of both Tastytrade portfolios need to be increased next week preferably. The theta for Mexem is just above 0,1% Net Liq and in the required range.
The delta of the MEXEM account is a bit too high at the moment, as is the allocation. I will be need to adjust this as soon as possible.

At individual stock level :

I will keep both PYPL and AMD till expiration and start/continue the wheel strategy if required.
I am hoping to close the Covered call AMD worthless next week and open a new one lowering my cost basis further. Current cost basis for my AMD shares is $106,62.
Current cost basis for my LYFT shares : $15,26

3. Weekly Watchlist

My special attention remain to manage the coming week : IWM, SOFI, AMD, PYPL, FSR

4. Other info

The screenshots I have used today are from the improved Google Sheets options trading journal spreadsheet that I am currently testing (with new improvements & integrating new possibilities such as filtered reporting, automated dashboards parameter and calculations). More coming soon …

More info about my new spreadsheet to come on my website.

In our discord channels, I provide live comments, trade alerts, educational info, tools and spreadsheets. and more every day in our discord room. Join anytime here: http://discord.gg/cGW6xH4RNT

Thanks for reading the TOCF Newsletter and happy trading!