2020: Weeks 21, 22, 23, & 24

Monthly Portfolio Chart

It’s been a month since my last journal update, and what a month! It feels more like a year in a lot of ways. So many events have been packed into these past weeks and months, and the year is only half over. We still have a presidential election to get through! Also, since my previous update, George Floyd was murdered not too far from my house, and my city, state, country, and the whole world erupted in righteous protests over his and so many other unjust deaths at the hands of our police. This blog isn’t really about politics, but some things cannot be ignored or left unsaid. Our country is need of major systemic restructuring.

Also in this past month, I worked three different jobs in the same week (Week 21), my dog tore her ACL in Week 22, and then I had my most successful weeks of trading to date in Weeks 23 and 24. (Incidentally, the end of Week 23 into Week 24 marked my 3rd Anniversary of trading.) Most pressing on my thoughts though is the fact that my wife is going to give birth literally any day now.

Now, to paraphrase Kai Ryssdal, lets do the numbers.

New Positions

  • F $5 Long Put Exp: 8/21
  • GE $11 Long Call Exp: 1/15/21

In the interim there were other new positions, but I will summarize all of those in the next section.

I bought the Ford put as part of strategy to trade against my overall sentiment. While I still have the long calls for January, I am using shorter-term puts to take advantage of price dips. So far this strategy has been working out pretty well.

I’ve added GE to my trading stable now. I’m essentially going to do the same strategy as with Ford. The reason I liked the idea of trading GE is also the same reason I have for trading Ford. It is a huge volume, currently low priced stock, and the options volume keeps the spreads tight and allows me to get in and out quickly.

Realized Profits & Losses

  • CLOSED: F $9 Long Call, Exp: 9/18 – Realized: $8 profit
  • CLOSED: F $10 Long Call, Exp: 1/15/21 – Realized: $0
  • CLOSED: F $7 Long Call, Exp: 1/15/21 – Realized: $110 profit
  • CLOSED: F $6 Long Put, Exp: 8/21 – Realized: $23 profit
  • CLOSED: EBAY $43/44 Credit Spread, Exp: 6/12 – Realized: $60 loss

The $9 call in Ford closed when Ford jumped up in value. I had place a sell order that was Good Til Canceled a while back and forgot about it. I could have gotten more out of that position, but I’m happy as I wanted to get out of that one anyway.

The $10 call I sold at a breakeven before Ford took off. That was my plan and I’m proud of myself for sticking to it. Had I held it I could have make over $20, but I’m not crying about any of my trades right now.

The $7 call I sold when Ford slowed down after the initial jump at the beginning of this past week. I wanted to realize some profits when my portfolio moved back into being profitable for the year. I sold it for $150. I’m still holding my other $7 call long term.

Right after I sold the $7 call, I was pretty sure Ford would dip in the next day or two. I bought the long $6 put on Tuesday and sold Wednesday morning for a profit. I won’t lie, I felt on fire during the first half this week. Of course not every decision I made was touched by Midas . . .

My credit spread in EBAY turned around and bit me in the butt almost as soon as I opened it. EBAY blasted past its previous all time highs and I gave up hope within a week of making this trade. It would have hurt a lot more if my trades in Ford hadn’t worked out so well. While I still believe strongly in selling options, I have realized that my trading account currently doesn’t have the capital to make the numbers work. As I have said so many times before, selling is a game of statistics, and I just don’t have enough money right now to put on the number of trades it takes to make the stats work out. So, for now, I will be taking a break from options selling. I am going to focus on my strategy I’ve been using in trading Ford. I’m going to add GE into the mix, and within the next week or two Nokia (NOK) as well.

Position Brief

TickerPositionUnrealized P/L
FLong Put (Exp: 8/21 $5 Strike)+$7.00 (+30.43%)
FLong Call (Exp: 1/15 $7 Strike)+$60.00 (+171.43%)
GELong Call (Exp: 1/15 $11 Strike)+$5.00 (+16.67%)
F10.52 Shares-$2.35 (-3.37%)

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