Friday, June 28, 2013

My Options Account on June 28, 2013 Part 2

The stock market is now closed.  I can never have a relaxing Friday in the market.  I got a major scare when Apple decided to move up to 400.  When Apple scaled back a little I sold 2 contracts of the 400/405 Call Credit Spread for .24.  Apple went over 400 a few times and then headed back down and finished at 396.70.  I managed to make $230 on my Apple options today.  Mastercard also just exploded higher over the last 30 minutes or so and I had to buy back my 570 Call for 2.50.  That was my only loss this week other than my one Apple 400/395 Put Credit.  My account was up $1,210 on the day. 

Overall a great week.  I finished up $3,165 on the week (after commissions) for a percentage gain of 32.63%.  The cool thing is I don't really feel I put on all that much risk this week.  The only time I felt nervous about my options was over the last 30 minutes today.  Crazy things seem to happen during the last hour on Friday.  These can be opportunities if you know how to spot them. 

I was going into the week with a low risk approach.  I made some adjustments and some additional trades that really worked out.  Last week was a huge loss week so I'm glad I could get back a lot of those losses.  Over two weeks I am still down $1,671 but over the past four weeks I am up $397.  I've been having a hard time getting up to $15K and staying over $15K.  Next week should be another really good week.  There will be less volume with the holiday.  With this there will be less premium so I am just going to make a small gain 5-10% next week and move on. 

My trades on Monday will start with selling put credit spreads in Apple, Google, Priceline and possibly Tesla.  I might take a few weeks off on Telsa since the stock has risen so much and could pull back at any time.  Apple is cheap so the weekly 385/380 put credit spreads look good and if the stock drops on Monday we could move down to the 380/375s.  I'll post my trades on Monday.

Jonny

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4 comments:

  1. Do you base your trades on technical or fundamental analysis?

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  2. My trades are probably more based on technical analysis. Stocks don't move based on fundamentals on a daily basis. However, I don't review charts all that much. I follow these stocks daily so I get a general feel for how they move. The key is to know when to hold and when to get out.

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  3. Thanks for the reply. Also, another thing I don't understand is if your up $2000 on your trades on a Wednesday, why not get out then without waiting for expiry on the coming Friday because there is a high chance that your gain will eventually decrease. I'm basing my question on weekly options.

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  4. Thanks for your question. I thought I responded to this earlier today but it looks like it didn't save. You raise a very good point and getting out with a profit is the key. The reason I won't get out is if the probability is so good for more profit that it would be stupid to get out. If I can get out at .05 or less then I always get out before Friday. If I still have .20 or so on the table then I want to stay in and realize the rest of my profits. Its really hard to answer your question without an actual example. Also, sometimes I can't get out if I enter a position the same day I have the big profit because it would be considered a day trade. I am unable to do day trades unless my balance is over $25K. Its never a bad idea to take profits but you need to be smart about it. Can you make more profits for little risk or is the risk too large that you want to exit? That's really the question. Everyday we have decisions to make in the weekly options game.

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