2020: Week 15

Weekly Portfolio Chart

After my second week at home, I think I’m starting to find a rhythm. I start by checking headlines on Finviz.com. It’s good way to get a quick idea of what has happened, what is happening, and maybe a clue as to why the markets are moving the way they are. Next, I open Robinhood and see what the pre-market is doing. This past week it’s been steadily opening higher every day. That’s been a nice change of pace. My long Ford positions have been moving in the right direction.

Once I’ve done these things, I wait to watch the market open. It’s always exhilarating to watch the first frenzied minutes of the market. It’s a moment I’ve enjoyed since I first started trading. If there look to be any opportunities I’ll enter a trade, or close a trade. Then I try and let the market do it’s thing while I go and do something productive. (Or at least try . . . )

Lately, productive means job hunting. I’ll write about that in a separate post though.

New Positions

  • F $4 Long Put Exp: 5/15
  • IWM $112/$111 Put Debit Spread Exp: 5/15

On Tuesday, I bought a $4 strike, long put option in Ford. I don’t trust this current market surge, and I also needed to have a little balance in my portfolio. Long term, I’m still bullish on Ford, but I don’t think we’ve seen the last of the four dollar range yet.

Following my new rules, I also opened a Debit Spread in IWM on Thursday. Now, until I close this spread, I cannot enter any other non-Ford related position. I bought the 112 put and sold the 111 put for a total debit of $28. My maximum profit on this trade is $72, but my target is $22 – $25. I entered this trade because I do not trust the market surge of this past week very much, and I wanted to balance my portfolio in a broader way.

Realized Profits & Losses

I’m starting this new section in my weekly update to make it more clear when I’ve closed a trade and what the result was.

  • CLOSED: F $8 Long Call, Exp: 9/18 – Realized $10 profit

The reasons for closing this trade were twofold. One, to continue balancing my portfolio. Two, to practice taking consistent gains. A major fault of mine in prior years was being greedy and waiting too long to take profit on options. The main thing with trading options is to remember that time is always a factor, both for a buyer and a seller. As I am primarily a buyer at the moment, the less time I can hold a contract for the better. This also followed my thesis that Ford will drop again, so I wanted to realize some profits before that happened.

Position Brief

This has been the first time in a long time where I can look at my trading portfolio and feel completely relaxed. That, more than anything else, tells me I’m doing things right. This feeling doesn’t stem from confidence that I will make money on all of these trades; it comes from knowing I’ve managed my risk.

TickerPositionUnrealized P/L
IWMPut Debit Spread (Exp: 5/15 $112/$111 Strike)-$10.00 (-35.71%)
FLong Put (Exp: 5/15 $4 Strike)-$4.00 (-15.38%)
FLong Call (Exp: 9/18 $9 Strike)-$7.00 (-41.18%)
FLong Call (Exp: 1/15 $7 Strike)+$21.00 (+52.50%)
FLong Call (Exp: 1/15 $10 Strike)+$3.00 (+30.00%)
F10.52 Shares-$12.98 (-18.60%)
CASH$420.96

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