After a not-so-good February report, March brought improvement in the trading results.
Would you have questions on options, you know where to find me!
I made 417€ trading options in March. That is not bad at all and a big difference with the 429€ loss from February. I will show you how my reslut is constructed and what losses I carry forward?
WHAT? You have losses? Of course, trading options is not whit out a risk and you can always get assigned stock.
First the trades
There were winners and loosers in March. More winners than loosers. The aggregated view looks like this. (All results include trading fees)
The RDSA result looks nice at the surface. It is indeed option premium I secured in March. As you will see below, it comes with the assignment of RDSA stock.
I am happy I closed out KBC for a small profit rather than going for the full profit. A few days after closing the trade, they went really down.
QQQ was profitable as well. These were the calls that I had from an iron condor trade. The puts were closed for a loss in February.
I also learned a good lesson when it comes to calls. I sold a naked call on the SPY, and the the rally up started and I was sitting on a paper loss of 800€ That for sure did not feel fine. I am grateful the rally stopped and offered me this learning opportunity. I will now do call spreads.
Losses I carry forward
In order to highlight the risk of options and to be transparant, I will also report the assigned stock and actions that I take.
So, yes, I have a paper loss of 1332€. I do not take this into account yet, as it only a paper loss. I only write puts on things I do mind to own for the long term.
I also decided to report option premium in the trading results. This means that you see the cost per share above as the actual price that I paid, including commissions and taxes
This is what my current portfolio looks like. I only share this for education purposes, not for trading ideas…
The FXI trade is one that goes back to January. It is china ETF and with the current corona, it does not go well.
KO and VTI are trades that I do in the context of my portfolio rebalancing. I have some “tak 21” contracts that I could close tax free (seems the bank now charges closing fees… 😦 ). I decided to use VTI in stead of SPY as I do not have enough money yet to write the SPY options. So, the combo KO VTI is what I plan to invest my money in.
4 thoughts on “Option trading – March 2020 report”
Your comments would suggest you are a conservative person….but your stock actions are very aggressive. Curious why no covered calls. I understand covered calls are not for everyone but they have worked well for me for an extended period of time. Any time I try more complicated trades (condors as an example) they never seem to work out. My returns average out well over time. In Jan 2019 my IB account was worth $50,000. Today it is $223,000.
With my options trading, I decided to experiment with other trades than puts. The timing was unfortunate… Just before the Corona bear. I do covered calls on the stock that I own, yet in a conservative way. Your trading results are impressive… Times 4,5 in 15 months.
I did go to cash in early March as things were getting crazy which helped hold the value of the account. Mostly back in now.