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Zsike's Trading Journal


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Zsike's Trading Journal

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  #1 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

Greetings futures.io (formerly BMT) members. This is my trading journal. I have a nice base of knowledge for trading and investing, so my continued growth in trading will come from new experiences. I just opened a new account at Interactive Brokers last week and I am ready to begin. After reading the "Options education" thread, I have decided to play it safe in a very uncertain world and downloaded the options strategy book from post #5 and the tracking speadsheet from post#14. I am interested in income and trading so I put together an option collar strategy on XLU, the SPDR utilities ETF. XLU has a quarterly dividend with the ex-div date each quarterly witching day (easy to remember) and a monthly options series.


I expect to receive two quarterly dividends with this strategy in the first phase. About $ 0.70 per share.




I did an option collar because of the downside risk represented on the daily chart.


My Trades:



I bought 600 shares of XLU and bought Six 15JUN12 37 puts. For these puts, I am paying $1.00 in premium over intrinsic for five and a half months of protection. I immediately sold Six 17FEB12 36 calls to start and offset the put premiums.



As part of the strategy as explained in the Options thread, I am ready to buy 600 more XLU to keep the strategy whole. I have experienced in the past how portfolio managers and market makers like to capture dividends from the naive investors who think they can outsmart them.



I am starting slow. I need to get a smart phone so I can download the IB app. I am a part time investor, but a full time watcher. I will develop a couple more trading opportunties for my portfolio.

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  #3 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received


The market is rallying today. My XLU is also. I am watching the 36 line on the chart as to protect my strategy position. I will just buy another 600 shares and sell the 37 calls or maybe 36 again..



I just read post#15 on the "options education" thread and thought I would give this a try. I decided to alter the short options to InTheMoney also.



I understand options and all, but I decided to play it real safe and go for the option premiums. I used the spreadsheet from post #15, but it makes no sense to me right now. I will have to adjust it after I flip this Friday's options to the following Friday.



I will see how this goes.

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  #4 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

XLU turned back down. I don't know what will happen tomorrow, but I will take it day by day.



The option strat is still above reproach.

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  #5 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

It seemed like a slow day: XLU





SPY closed up a little today about 129.25. The adjustment points for me on the STUUD are about 126 to 127 on the downside and 131 to 132 on the upside.

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  #6 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

I did a GDX STUUD strategy trade today. $1400 Intrinsic value trade. I bought the Feb17 options and sold the Jan20 options. Each short option was 2 points OTM. And with the volatility beefing up the premiums, I was able to achieve the full intrinsic value and 2 points OTM. And I figured out how to score the trade and use the spreadsheet. I split the diagonal spread in half and recorded the legs. This trade is suppose to achieve 5% a month.




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  #7 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

Yesterday when I did the GDX STUUD, I noticed I did the SPY STUUD wrong. I had the short options ITM instead of OTM. I am new to IB and these option strategies but ................ So I reversed myself yesterday, wow, just in time because the market is much lower today. I still made a net profit.






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  #8 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

And week. Nice reversal today after a gap down. Trend hasn't changed; we'll see what happens next week.


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  #9 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

posting my risk profiles for my three positions






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  #10 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received




The XLU chart. In process.



I closed out the two STUUD trades. I was going to have to adjust the GDX one if GDX went lower. I could see on the options list that would have to buy back my short options too rich and sell the next series too lean and create a much larger loss. As the spreadsheet shows, I had a limited loss.



Being GDX was a loss, I could see SPY was a gain. Net net I wanted a plus+++++.



I included the spreadsheets for any readers usage.

Attached Files
Register to download File Type: xlsx Zsike's STUUD Strategy GDX.xlsx (11.0 KB, 8 views)
Register to download File Type: xlsx Zsike's STUUD Strategy SPY.xlsx (11.4 KB, 10 views)
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  #11 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

XLU is slipping today, so I said why not buy back the 36s and sell the 35s.



So I did.



and my current results are this:


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  #12 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

Well, it's not that bad. XLU is slipping a little more. I moved down to a 5 minute chart to anticipate a move to the 35 mark.



Not much is happening and I am not interested in a STUUD trade. So I decided to do another option collar strategy. I couldn't decide to do SSO or SDS, so I decided to do both and call it a contra collar strategy. Since SSO and SDS oppose each other's direction in the market (SPX), I can catch the market moving in either direction in a trade. And write weekly options against both positions. So I bought the June puts for each and then sold next week's options via a buy write. So, I list the trades and my new spreadsheet.




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  #13 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

XLU and the market made a run higher on the open, then reversed. I was ready....................but ...................


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  #14 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

Last week's trades to update my spreadsheets




on the Contra Strategy, I bought another 100 of SSO to protect my outstanding call strike. It kind of backfired with no follow through. I should of taken a small loss, but I sold the 52 call, bought it back and then sold the 51 call. As long as the market does what it is doing, I am okay; but I have open downside on the 100. I was rolling over the other calls, buying down my strategy ante. The market is ranging with quick swings for added volatility to keep the ATM calls rich.



On my XLU strategy, I did the wrong thing again and did a BuyWrite to protect my 35 call strike. That was dumb, should of done a straight buy. But I saw price rolling over on the chart so I closed it out as price went back to ranging in the 34s.



******************


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  #15 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

I have not updated my journal. I had been trying to learn to trade SSO against my written strike price and I continue to fail in the endeavor. At this point it's not working for me. But, I have plenty of cash in my account, so if my trade fails, I just quickly write an ITM option against the failed trade. So, I am nickel and diming my strategy. So, I had many 100s of shares of SSO outstanding with covered calls. So, they all cleared Friday with the Feb monthly option expiration. So, I updated my spreadsheet and it says the strategy should be in the black with option rollovers this Friday. I have had no need to trade against SSO 55 this week, so I will just wait. Currently 54.48.




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  #16 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

XLU is quite the ETF. It's all over the place. Opening gaps, quick moves then reversals. So, it is difficult to trade it against my 35 strike price. If I have another 600 shares outstanding, it limits my cash for trading SSO. I can have 400 - 500 shares of SSO outstanding. So instead of getting in a pinch, I decided to move the call options from 35 to 36. I made a profit on the 35s, but my startegy is still in the red. No problem, March is dividend month and if XLU dips I will move back to 35.



Need to learn to trade. Better.

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  #17 (permalink)
zsike
Pecsely, Hungary
 
 
Posts: 26 since Oct 2011
Thanks: 30 given, 26 received

Well, I am still trying to adapt to the trading world. My account is growing, just slowly. This is a retirement account so I can only go long stock. I can short e-minis, but they are out of my league. I will get better. Everytime I tried to trade SSO, it backfired or stalled so I just wrote an option against my trade. My Strategy went to profit and then last week when the market reversed back against me, I closed out 200 shares and open short options as selling a buy-write. Better safe than sorry, but it clipped my profits a bit. Anyhow that's the way it is. I updated my strategy on the spreadsheet and I show a profit. And today with a dip in the market, I rolled lower in strike prices to collect more premiums.



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