My Options trading Unlocked - Newsletter 26 Aug 23

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

26 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 volatility of the stocks with the VIX.

SPX Chart – SPX 4405$

This week felt like a rollercoaster for me. SPX closed about 36 points higher on Friday, adding about + 0,8 % last week.

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 17.21

The VIX oscillated between 15 and 18 last week, ending at 17 and a bit. It looks like a confirmation that 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 :

24 Aug 23 : Closing $LYFT Covered call 14 for $0,05 resulting in a net P/L of $29,00, about 88% of the premium.
24 Aug 23 : Closing $AMD 1 Covered Call 112 for $0,33 resulting in a net P/L of $133,00
25 Aug 23 : Closing $GOOGL after 53 days (manage at 21 DTE) ; BTC 1 STR for $1,68 resulting in a net P/L of $74,00 with a ROC of 2,66% and an Ann ROC 18%

Opening Positions :

NKE – 24 Aug 23 :
- Opening a new position in $NKE: STO a Put Ratio Spread : 1 Short 2x 90P Long 1x 95P, ExpDate 20/10/23, BP $1300, IVR 21,5, SpyB_Delta 3,16 with PoP 85% for a net credit of $0,47
- Max profit is around $550. I don’t trade a put ratio spread that often and i wanted to diversify after NKE’s down move.

Adjusting Positions :

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

COIN :
- 23 Aug 23 :
  - Rolling my $COIN Short Straddle 85 position out to 20 Oct for $6.54 credit, total credit received now at $16.52. This gives me break-evens at Exp of $68.50 and $101.50.
  - I am still in the red on this trade with the straddle 85 currently trading at $19.55; My plan is to get as much as theta (currently $14/day) possible out of it and closing it with a profit.

IWM :
- 25 Aug 23 : managing at 21 DTE
  - Rolling my $IWM Short Straddle 192 position out to 20 Oct and widen to 180P/190C for $1,85 debit, total credit received for this position now $3.34
  - Rolling my $IWM Short Straddle 190 position out to 20 Oct and widen to 175P/193C for $2,85 debit, total credit received for this position now $3.76

SOFI :
- 25 Aug 23 : managing at 21 DTE
  - Rolling my 2x $SOFI Short Naked Put 9 position out to 20 Oct for a $0.28 credit, total credit received $0.98
  - Rolling my 1x $SOFI Short 10P position: Rolling out to 20 Oct for a $0.15 credit, total credit received $1.23

b. Weekly results & currently open positions:

📈 Goal $600 : 🟩 🟩 🟩 🟩 🟩 ⬛️ – almost at my monthly target 534/600

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.

All my positions are rolled to 20 October, except the FSR position. My intention is to keep this a week longer in Sep and maybe close next week if it jumps up to about 75% of Max Profit. The rollercoaster of last week confirmed that having a sound trading plan for your positions allows you to keep calm and execute mechanically without losing your trader’s mind. 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.

b. My Trading Plan for upcoming week:

At portfolio level :

With rolling my positions and taking. somerisk of the table, theta came down. Especially the theta of both Tastytrade portfolios still need to be increased next week preferably. The theta for Mexem is just below0,1% Net Liq and it requires. looking out to new positions with reasonable margin requirement (just above my max allocation of 30 %).
The delta of the MEXEM account is still too high at the moment. Rolling and readjusting the strikes of $IWM improved the delta but I really need to lower it to close to 0. Especially in this market with a down tendency. I will look at opportunities 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 added DIS to my watchlist. I has fallen very low that it is certainly a candidate for a short put or maybe for a wheel.

3. Weekly Watchlist

My special attention remain the coming week : DIS, SOFI, FSR, AMD and LYFT( to add covered calls)

4. Other info

The MS EXCEL version of the new and improved “All In Options Trading Journal Spreadsheet” is now also available.

Best Options Trading Journal Spreadsheet for the highly profitable option trader looking to learn from his trade journal

In case you have missed it, I am adding detailed demo videos about this spreadsheet on my Youtube channel. Thank you for the great interest. If you need further assistance or help, feel free to ask!

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.