2020: Week 8

Weekly chart of portfolio

This was the week I’ve been waiting for since the beginning of the year when I put on my first Iron Condor. I needed EEM to end the week anywhere between $43 and $48 per share. On Friday afternoon it was hovering in the mid $43’s. I was pretty sure I would be safe holding my Iron Condor till the end of the day, but as the whole market was incing downwards I couldn’t be 100% sure of it.

As Friday rolled on, all of the option contracts that comprised my Iron Condor had dropped to a value of $1. So, just to be safe, I bought back the $43 strike put option for that $1. This basically guaranteed I would receive the rest of the $20 credit for the remaining contracts I was holding. That was a pretty easy choice to make. Sacrifice $1 to guarantee $20 in case the price of EEM closed below $43 which was not outside of the realm of possibility. While I definitely prefer to close out my option trades early to lock profits, it was satisfying to let this one go all the way to expiration and see the statistics play out in my favor. I realized $20 of profit on this trade.

XBI is still worrying me a little as it continues to hover just above the higher strike price of the Iron Condor I have on it. If it moves back down and shows a profit anytime soon, I’ll be taking the trade off and banking whatever I can get. I think I jumped into this one a little too quickly, or at the very least I should have only gone for a bullish credit spread and not the full Iron Condor.

New Positions

Despite my small amount of capital, I picked up two more shares of Ford at $8.05 per share. This brought my average down to $8.50 per share. I generally am not an advocate of averaging down for trading, but I feel pretty confident that Ford will return to the $9 per share range at some point, and my strategy here is long term. I want to keep building this position to eventually maintain 100 shares that I will position trade, use to sell covered calls, and collect those sweet dividends.

Position Brief

TickerPositionUnrealized P/L
XBI Iron Condor (Exp: 3/20, 80-97 Strike) -$21.00 (-60.00%)
F5 Shares -$2.90 (-6.82%)
DOGE2235 Shares +$1.3298 (+29.75%)

Leave a Reply

Your email address will not be published. Required fields are marked *