Week two of 2020 is off to a good start. My micro-trading account is up 13 percent. While everything I’m doing right now is still statistically meaningless, I’ve made some good choices so far and I’m hopeful as I follow my new strategy. (I’ll go into more detail on all of that in a regular blog post.)
This was an interesting week both in world politics and in the market. The killing of the Iranian General Soleimani kicked things off and kept everyone guessing. When I saw the market take a steep dive pre-market on the 6th, I had a feeling things wouldn’t stay down. I quickly put in an order for a debit spread on iShares Russell 2000 ETF (IWM) expiring on 1/17.
Generally, that is a much closer expiration date on my options trades than I am comfortable with, but I didn’t quite have the capital to go farther out. Also, my goal was to only hold this trade for a day or two at the most. I was almost immediately in the money (ITM) on this trade, but I held it overnight hoping to make $20 on it. On the 7th the market was wobbly and I got nervous that I might be holding onto a loser. With time decay on my options working against me, I set an order to close the trade for $10 profit. On Wednesday my order executed as the market once again soared to new highs. All in all I was happy with this week. I took more risk than I should have, but while my account is still at nano status I’m okay with that.
I opened another Iron Condor that expires on 2/21. This one was for the SPDR Gold Trust ETF (GLD) and I received a $38 credit. I’m targeting $20 profit if I close before expiration.