Monday, June 17, 2013

My Options Account on June 17th, 2013, Part 2

The market is closed and boy oh boy it was a good day.  I'm not sure things could have gone better for me today, besides NFLX.  The market was up big and when it was I sold my call credit spreads.  Then the market scaled back which was just what I needed to maximize my gains for the day.  Normally I would be happy to just break even on Mondays due to all the trades I make but today was a little different.  I spent $207.50 on commissions and my final profit after commissions was $1,361.57.  This is a percentage gain of 9.3%.

The market has been pretty volatile lately but I think its a great situation to do Iron Condors.  No one really knows which direction the market is going to go.  Some people think we have over-extended and the market is going to crash.  Other people think we are in a bull market and you should ride the momentum higher.  For me, I don't really know and don't care.  I will keep selling my credit spreads and for every minute that goes by I'll make money.  Its seems the market will go up one day and then down the next.  As long as my stocks don't move substantially one way or the other I will make money.

Here's a recap of my larger positions:

Google $886.25 12 900/905 Call Credit Spreads; 9 865/860 Put Credit Spreads; 3 875/870 Put Credit Spreads - Daily Profit $715

Apple $431.98 8 420/415 Put Credit Spreads; 8 445/450 Call Credit Spreads - Daily Profit $380

Tesla Motors $102.20 9 92.5/90 Put Credit Spreads; 5 97.5/95 Put Credit Spreads; 5 115/120 Call Credit Spreads - Daily Profit $340

Netflix $229.46 6 215/210 Put Credit Spreads; 5 240/245 Call Credit Spreads; 1 225/230 Call Credit Spread - Daily Loss $184.50

Amazon $278.06 2 265/260 Put Credit Spreads; 1 275/270 Put Credit Spread; 3 285/290 Call Credit Spreads - Daily Profit $118

I also have 2 contracts of PCLN and 1 contract of MA.  Daily profit on these were $8 on PCLN and $41.50 on MA.

I'll post a few trade suggestions tomorrow morning.

Jonny

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2 comments:

  1. VijayMJune 17, 2013 at 6:10 PM

    Hey there Jonathan,

    Thanks for starting this blog; I've been following for a couple of weeks now and have been looking at your trades. Just a couple of questions:
    1. How do you pick your strikes? on the thinkorswim platform there is an expected move so is that what you try to refer to ?

    2. do you think its safe putting the positions on friday or monday? Ive just started doing credit spreads and usually wait till wednesday or thursday as by this time all the major market moving news events are over for the week.

    thanks and keep it up !!

    V

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  2. UnknownJune 18, 2013 at 9:36 AM

    V - Thanks for your comments. I have been trading these stocks for a long time and I just get a general feel for how they move and I look for strike prices so I can generate about 6-10% gains. I start with a directionaly spread and will normally move into a full condor hopefully after the stock moves the direction I was expecting. I'm not very good at predicting which way a stock will move from day to day but I will sort of trust my gut based on how a stock has been acting. For example, Google has been really strong and on Friday the stock appeared to have been manipulated lower to pin at 875. I had a feeling this stock wanted to go up so I entered my put credit spreads on Friday (865/860). Normally I like to wait to do my spreads on Mondays because I get pretty large time decay on Mondays and Tuesdays but I like your idea of waiting until Wednesday or Thursday. Usually when I enter my trades later in the week I find it is easier to expect where the stock will end up come Friday. You won't make a huge profit but you can bank 4-5% pretty easily.

    Jonny

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