Category: Finance

February 3, 2017

Sold March IWM Naked Put

Filed under: Finance,Stock Picks - 03 Feb 2017

As I mentioned yesterday in my post, I planned to sell an IWM naked put if the priced dropped a little today. The price didn’t drop and I wrote the put anyway. I decided the employment data and the bullish crossover of the 10-day moving average over the 20-day moving average was enough of a reason to make the trade, especially since I’m still under 50% invested, even after this trade.

While IWM was trading at $136.60, I sold one IWM …

February 2, 2017

Sold MDY Put Option Combination

Filed under: Finance - 02 Feb 2017

I made the first trade in my new account that was funded today. I bought an MDY put and sold 2 different MDY puts at a lower strike to pay for the long put. While MDY was trading at $306.01, I bought to open one MDY $305 put for $11.05 and sold two MDY $290 puts for $6.29 each. I received $152.69 for the ratio spread that hit at $1.53 after I paid $0.31 in commission. My order was for …

February 1, 2017

End of the Month Summary – January 2017

Filed under: Finance - 01 Feb 2017

With my account in limbo during my transition to a new account, January was a bland month for my investments. That’ll change in February. Still, I managed to pull out a little gain thanks to my only position being Disney (DIS). I started the month by pulling out $75,000 to move to my new individual account. I left DIS in the account in an attempt to cut my loss and possibly even turn it into a profit. So far, it’s …

January 30, 2017

How to Use My Naked Puts Spreadsheet

Filed under: Finance - 30 Jan 2017

I posted a new video this afternoon on how to use my naked puts spreadsheet. This spreadsheet compares naked put option choices. My videos will show this spreadsheet whenever I write naked puts and figured it made sense to get this explanation out there before I start posting actual trade videos. Hopefully, I’ll get my first trade in this week in my new account since the check is scheduled to clear on Thursday. Even if today’s slide continues into Thursday, I …

January 27, 2017

What is an Option?

Filed under: Beginners,Finance - 27 Jan 2017

I posted my first YouTube video this morning. You can view it below or directly on my new YouTube channel.

It’s not really catered to regular My Trader’s Journal readers since you all know these basic points, but I figured I should start with a high-level overview of options trading and single contract puts and calls. I didn’t cover spreads/combinations or Greeks or anything beyond what could fit in a very broad summary for a beginner.

My new account will be funded …

January 23, 2017

Options Expiration – January 2017

Filed under: Finance - 23 Jan 2017

I had no options expire on Friday, but did find the time to open my new account with Interactive Brokers on Friday so I can get back to regular trading with a full balance again.

I mailed my check for the new account in Friday afternoon’s mail, so it should get to IB by tomorrow or Wednesday and then I’ll have access to the funds the first full week of February (after the required 10 day hold on checks).

The only position …

January 11, 2017

Sold DIS Covered Call for February

Filed under: Finance - 11 Jan 2017

Disney ($DIS) is the only stock I have in my account right now and have been trying to decide if I should exit with a loss or hold on for a gain. I chose the latter and plan to make this work through a covered call. While DIS was trading at $109.30, I sold one February $110 covered call for $2.45 and received $244.32 after paying $0.68 in commission.

My cost per share is $112.01 after deducting the $2.99 premium I …

January 8, 2017

Dow Jones Chart – January 6, 2017

Filed under: Finance,Indices,Stock Charts - 08 Jan 2017

The chart below shows the daily prices for the past three months on the Dow Jones Industrial Average (aka $DJIA, $INDU, $DJI) after the index closed for the week at 19,963.80 on Friday, January 6, 2017.

The Dow has gained almost 9% since the election as animal spirits took over trader sentiment …

January 3, 2017

End of the Year Summary – 2016

Filed under: Account Summary,Finance,Indices - 03 Jan 2017

December was another strong month for me in a year that ended with a loss in my account. The way I traded TLT (without hedges) forced me to take losses when the market temporarily dipped even though my longer-term outlook was correct. The old Keynes adage fits in here (paraphrased) that the market can stay wrong longer than I can stay solvent. It’s moot that I was right in the end. What mattered is that I couldn’t stay long all my …

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