My Options trading Unlocked - Newsletter 19 Aug 23

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

19 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 4369$

After the small bounce on monday, the market and SPC continued the downtrend and closed the week at $4369, another 1,82% lower than last week’s close. SPX dropped considerably under the 50 day moving average, where it clearly did not find support. Also the opening on Friday was considerable lower, but the market rallied up again to close almost without a loss.

Market outlook for next week : Nobody knows anything so I am not trading direction, meaning after this week’s down move, I would appreciate a recovery move up of a couple of points and maximise my theta 🙂

VIX Chart – VIX USD 17.30

The VIX move up 11,40 % this week ending at 17.30 with a weekly high on Friday of 18.78; It looks like we are climbing finally away of weeks of very low VIX of around 13-14. Higher VIX means higher options prices and gives us option sellers the possibility to have a bigger return.

2. TOCF Portfolio Weekly Recap & Trading Plan

a. My actions this last week :

Closing Positions :

18 Aug 23 : Closing $AMD Covered Call $112 strike, resulting in a net P/L of $282,00. Lowering my cost basis of the 100 shares AMD to $105.61

Opening Positions :

15 Aug 23 : With a nice move up of LYFT today, opening a new position in my $LYFT wheel strategy : STO 1 Short Covered Call 14, ExpDate 15/09/23, BP $0, IVR 7,6, SpyB_Delta -1,32 with PoP 79% for a net credit of $0,35. Total credit received : $2.59, bringing the cost basis of my shares when cc expires at (bought at $17.5 – $2.59=) $14.91

18 Aug 23 : STO an new Short CC 112, ExpDate 01/09/23, BP $0, IVR 24,4, SpyB_Delta -13,6 with PoP 77% for a net credit of $1,70 aiming to continue lowering my cost basis. On expiration the cost basis of my 100 shares AMD will be at $103.91

Adjusting Positions :

This week I had to roll the untested side more than one :

COIN :
- 14 Aug 23 : Rolling my $COIN Short Strangle 85P/100C position; Rolled down the 100C to 95C for $0.85 credit, total credit received now at $7.48, improving my delta a bit.
- 16 Aug 23 : Rolling my $COIN Short Strangle 85P/95C position; Rolled down the untested side 95C down to 85C into Short Straddle 85 for $2.50 credit, total credit received now at $9,98. Breakevens now around $75 – $95

IWM :
- 16 Aug 23 : $IWM keeps going down, so I need to adjust again
  - Rolling my $IWM Short Strangle 190P/198C position: Rolled down the untested side 198C down to 192C for $1.30, total credit received now at $6.04
  - Rolling my $IWM Short Strangle 192P/198C position: Rolled down the untested side 198C down to 194C for $0.72, total credit received now at $4.72
- 17 Aug 23 :
  - Rolling my $IWM Short Strangle 192P/194C position: Rolled down the untested side 194C down to 192C into a 192 straddle for $0.47 credit, total credit received now at $5.19
  - Rolling my $IWM Short Strangle 190P/192C position: Rolled down the untested side 192C down to 190C for $0.57, total credit received now at $6.61
- I now have 2 straddles one at 190, and one at 192. Next possible adjustment is rolling out to Oct and readjust the strikes…. at the end of next week

b. Weekly results & currently open positions:

Here is an overview for both portfolios of the results of last week:

Most of my positions are still in the red with the market going against me and need improvement over time.

I am positive in my actions : You can’t control or predict the market and it is never wise to close positions in a panic. Risk management is key when selling options, so is having a management plan and staying mechanical.

b. My Trading Plan for upcoming week:

At portfolio level :

The theta of both Tastytrade portfolios still 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 too high at the moment, of course due to the down movement of the market,so 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 will keep an eye on all my individual positions closely during the week and need to reposition, rolling by next Friday.

3. Weekly Watchlist

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

4. Other info

I am proud to announce my new trading journal spreadsheet !

After creating the 2023 Options Trading Journal Spreadsheet and the making the 2023 Trading Options Wheel SyStrategy Spreadsheet, I have combined best features of both spreadsheets into a new and improved “All In Options Trading Journal Spreadsheet”, integrating all possible option trading activities together with a powerful filter possibilities for analysing the trade results.

customized spreadsheet google sheets for trading options with success

This spreadsheet has grown into an indispensable tool for successfully tracking my trades and is particularly tailored to options trading, but it encompasses a comprehensive range of features.

It is available for purchase in our TOCF shop for less than the price of one winning option trade (!) : https://www.tradingoptionscashflow.com/product/all-in-trading-options-journal-spreadsheet/

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! Don’t hesitate to contact me to talk options.