In the last Covered Calls post I set up trades on the 7 stocks that were assigned to me in Week 1 of selling Cash Secured Puts. I had done a series of 7 CSPs on best-performing ETFs with weekly options based on the previous 5-day performance. Those did well, and none were assigned. Then as a kind of silly experiment I did CSPs on the 7 worst-performing ETFs over the previous 5 days. Those did terribly (duh) and all …
Opened 5 CSPs this week for 30SEp22 expiration , which I’ll update each day as things happen: DUST LABD SOXS TBT UVIX UVIX in real-money account Notice that the real-money account did slightly better than the Paper Money account, with similar trades at similar times. Average for the week: -7% + 1.9 + 1.7 + 1.4 + 3.9 = 1.9 / 5 = +0.38% per trade for the week. Not bad, still simple-annualizes to a 19% per year return, but …
In the last post I walked through strike selection for TNA. Now I have 6 more of last week’s assigned CSPs to sell CCs on. Here’s how those positions stand going into the Covered Call side of The Wheel on them: FAS closed Friday at 58.60, and was “put” to me at 64. I collected 1.55 in premiums selling puts on it, so the trade is down by (64 – 58.60) – 1.55 = $3.85 per share. JNUG closed at …
In this post on Cash Secured Puts (CSPs) I opened (14) 5DTE trades and tracked them over the week. Seven of them were based on the prior week’s best-performing ETFs with weekly options, and as an experiment I also did 7 trades on the worst-performing ETFs of that prior week. Those actually started out well, but by the end of the week they were all ITM. And so I’d have fodder for a Covered Calls thread, I let them all …
It’s the weekend, so time to put on new trades for next week. If I were trading this strategy full-time I’d have on at least 10 positions, so that none was more than 10% of my portfolio. Trade sizes less than 5% are even better, but for purposes of this experiment I’m going to back down to 5 per week. Not because putting on the trades takes much time, but because writing about them does. So to get started, I …
The S&P lost 4.1% this week. Did my 1%-return 5DTE trades make any money? The 7 trades I put on the worst-performing ETFs from the previous 5 days ALL ended the week ITM, and overall lost money. But more about them later in the weekend when all the shares get assigned. The 7 trades I put on the best-performing ETFs all ended OTM, and every single trade made money. Here they are in alphabetical order, so as not to play …
Monday I was bragging about the 7 trades from the 5-day worst-performers list, but today (Thursday) they’re showing their true colors: 5 of them are ITM, meaning the ETF prices have fallen below the puts I sold (3 were ITM at Wednesday’s close). Which means I’m losing money. And not just intangible, extrinsic value, but real, hard dollars. Because of course a put works like this: if I sold you a $10-strike put contract on XYZ, and the stock price …
Not many good things in life are free, right? Want a well-paying job? Probably need to pay for college, study hard, etc. Want to do well in that job, get promoted faster than others, make more money? Probably need to work harder than everyone else. Got a business idea you think you can monetize? You’re definitely going to have to hustle. Want to make 7 to 8% on your money for the next few decades? Buy index funds and wait; …
It’s Monday after hours. Over the weekend I decided to focus on 5DTE CSPs that offer a premium of 1% for the week, but no more. Not that it couldn’t be a little bit more just because of how strike prices and premiums fall out, but I would select the 1st strike that met the 1% criteria, but no higher than that. In the CSPs II post I described building a watchlist on Barchart of ETFs with weekly options and …
Monday, 9/19/22: The SPXU 23Sep16.5P sale executed at 10:48 for 0.23. SPXU stayed around Friday’s close of 17.95 most of the day, and at one point the put had lost enough value that its value was down to 0.17. But around 3PM the market decided to take off, and because this ETF tracks the inverse of the S&P500, it’s price dropped, causing the value of the 16.5P to go back up. SPXU lost 38 cents today to close at 17.57, …