Closed the /cl trade for an $800 (was 2k at 0600) loss. I hedged the move this morning by going long 3 futures but then had a meeting. By the time I came back the big move was over so closed everything out. I think it would have worked out eventually but was using up too much margin for some other things I want to do. Will revisit or go back to /es since they have weeklies and easier to manage.
It also confirms the way for me to trade directionally is to sell options. I just seem to always miss the big pivots/reversals because my schedule does not allow me to watch the market. If I could sit and watch all day (which I don’t want to) I think I have the tools and skills to do it, just not for me. I have always had more success selling options and that is what I will do from now on but will take a slightly directional bias to hopefully improve returns. However based on the TT research I may move my ladders out a little farther to 45 DTE and see if I can recycle capital faster. Currently using 21-28 DTE on the #optionladder. The big decay on OTM options is usually that first 2-3 weeks.
Rolled GILD 77.5 out 11-17 to 12-15 for avg. 0.99 credit. Cost basis now 75.5. Stock currently 72.8 so getting close to a break even.
SVXY one for the team, STO 11/17 100 put at 1.79.
I tried to sell some TNA puts at 60 for 15 DTE but the bid ask was 0.29-1.9 and once I got to 1.5 and the market makers would not bite made me realize the liquidity is probably not there so cancelled it.
Going biking, we are finally cold enough here to kill the ticks and chiggers so can go mt bike in the woods again 🙂 without getting all itchy or funky tick borne illnesses 😦
Have a great weekend, that’s all I have, next week is a large expiration but done trading this week unless there is something really exciting tomorrow.
Will start the small account SPY credit spreads experiment @jeffcp66 style once some CC calls expire next week (monday 11/20). It is a small account 6200 so will set up ladders using 3-5 point spreads on the SPY and each week add one. Once 3-4 weeks on the ladder let the expiring ones close or roll them into new ones. My goal is to double it in a year or even even better like Don Fishback is claiming, they had a 300% return on the SPY credit spreads last 12 months. I saw the spreadsheet with the trades but they whited out just enough information that I could not tell the dates of the losing trades so cannot see how they closed them. Looked like there were only 3-4. From what I can tell, partial loss, they did not let it go full loss. But with @jeffcp66 tactics we may be able to scratch them or even turn into a winner. Will see!