February was an interesting month for my option trading. I decided to try out a new strategy. That is always fun. Yet, it is also the month that the markets decided to take the corona virus into account.
February 2020 income: -429,16 EUR
Well, that is not helping towards my financial independence… the loss on 2 trades is actually 751USD. Thanks to profitable trades at the start of the month and profits on gold and silver trades, I have less loss for the month.
I explored the power of iron condors in Februray. I truely see the advantage that they can bring for trading higher priced stock and it brings a market neutral element to my strategy.
I opened some trades on Friday Feb 21st and Monday, the markets went south…
Sadly, I reacted too slow to close my positions on the long side (the puts). I should be more strict and close positions when the loss is 2 times the initial credit. A valuable lesson learned. The call side is still open on a trade. That still hides some profit as well. The month of March will be grateful for this.
Trades that require attention
My FXI trade – a China ETF- still needs attention. I managed to roll it to April. It remains deep in the money and I expect assignment. The dollars are not there yet…
I have a new RDSA trade that is in the money. I accept assignment on March 20. The money is already available with my broker
I have an iron condor that is flirting with the put limit. I will keep an eye on this one and close it when the loss is twice the initial credit.
YTD result for 2020: -256,91 EUR
Well, not so nice to start the year…
Assigned stock I now own
100 RDSA – assigned in February 2020
This is actually the stock I learned to trade options with… It started all the way back in 2015. the plan is to collect the dividend and wait for the price to go up so that covered calls can bring in extra money.
How was your February?