A RETIREE in the tropical country of the Western Foothills of the Belize Alps tries his hand at 73 years of age, in earning some extra money is the idea, trading OEX INDEX OPTIONS in Chicago via the internet.
Friday, May 21, 2010
TEN MONTHS WORK PAY OFF IN OPTIONS TRADING METHODOLOGY! May 21st, 2010 (Report #32)
It has taken 10 months of experimentation, research and work, to reach this successful month of May of trading. The goal now is to do the same in June options. June options start on the 24th of May and run through to the THIRD EXPIRATION FRIDAY of June, 18th.
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Report #32 from the Western Belize Happenings!
JUNE OPTION MONTH STARTING 21ST OF MAY TO JUNE 19 TH ( Third Monday of May, to third Friday of June month )
TRADES: Goal is to duplicate the success of May with 16 trades entered and won. It has taken 10 months to get to this point in the evolving trading methodology. This is the June Trading Month as we go along.
Number of trades to date: 8 --- June 15th.
Number of winning trades: 5
Number of trades closed at breakeven - no win - no loss: 2
Number of losing trades: 0
Open trades pending working: 1
Percentage of total annual wins to losing trades: 100%
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Return on GROSS ACCOUNT CAPITAL is running between 3% and a little over 5% per month. Individual trade returns vary slightly.
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June trades 1) A long CALL taken at a cost of $2630 and sold at $2760 before commissions were deducted. Ran a week and was a wrong decision for timing.breakeven trade 0
trade 2) A long CALL taken at a cost of $2670 and sold at $2680 before commissions were deducted. Ran a week and was a wrong decision on timing. ( No gain - no loss -breakeven trade breakeven trade 0
Trades: An IRON CONDOR consisting of two opposing Vertical Credit Spreads. Expired end of Friday, June 4th.
a) 10 contract Weekly 510/515 CALLS @ + .50 cents June 1st - closed at Friday expiration WIN net +$460.05
b) 10 contracts Weekly 480/475 @ + .65 cents June 1st - closed at Friday expiration
(Bracketing iron condor) WIN + net $ 610 before brokerage commission costs.WIN
( $10,000 needed to take this trade ) For the two weeks trading, $15,300 used, including the two Long Calls of the week before, for a return of 6 1/2 %, or +$1000 net.
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10 monthly Option House 510/515 CALLS @30 cents limit working WIN + net $277.50
10 monthly Thinkorswim 510/515 CALLS @.45 cents limitworking WIN + net $410
10 weekly Thinkorswim 510/515 CALLS @.50 cents limitworking WIN + net $460.05
4 Sept/500 PUTS $29.70 OEX at 495 June 15th. -Option House- continue holding into next week -WORKING-
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JUNE OPTION MONTH ¨spreads¨ win total: + net $2217.60
2 Long CALLS lost at breakeven cost
4 long PUTS carried over into JULY option month - still working -
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Review: Conclusions - Long options in CALLS and PUTS need further refinement in methodology. They are not working as currently done using OPTION HOUSE brokers! Spreads gave us two scares and nail biting scenarios, but eventually expired as planned in the profit category.
Preparations for July Option month starting on Monday sometime during the Option month, will start with real cash as fast as the paperwork and mail service allow with Chicago brokers. Probably take most of the month to deal with that part of it?
Option House brokers were cheaper for commissions but gave bad fills which were expensive on the long options and probably caused us losing trades. Thinkorswim brokers were more expensive for commissions ( about double ) but gave superior price premiums in the trials for trades.
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