December 27, 2016
I used today as a house cleaning day. Since I’m sitting on a year with realized losses that are greater than my capital gains, I decided to close all my positions that had a gain rather than drag the gains into 2017. I’ll still have more than the $3,000 limit to right off and will carry the balance into the new year, but at least I cut that deficit a little today.
I placed these closing orders at the end of …
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December 16, 2016
Today was the ex-dividend date for MDY and someone decided to assign my shares a day early so they could take advantage of the dividend. After closing at $104.69 yesterday, my one MDY December $290 covered call was assigned and I sold my 100 shares of MDY for $290.00 while I took a full profit ($579.75) on the call option.
I missed out on the $1.165 dividend, but was able to take the profit on the shares and the option in …
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December 14, 2016
Going into today’s 2:00 pm Fed rate decision, I expected a quarter point rate hike, as did practically all of Wall Street. They telegraphed it very clearly and did not disappoint. I entered a limit order for an MDY naked put at the money on the high side of the fairly wide bid/ask prices. My expectation was that in the final few seconds before the announcement, the ETF would spaz (technical term!) and I might get a trade in.
After I …
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December 8, 2016
After waiting for many months, I realize I should’ve waited even longer before selling covered calls on my IWM and MDY shares. Both calls are trading in the money now. The good thing about that is I can start selling more naked puts with less risk of losing on every position when the market eventually has more than a day or two lower.
While QQQ was trading at $118.79, I sold one QQQ February $117 naked put for $2.55 and received …
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December 2, 2016
As I mentioned a couple of times recently, my goal is to have is to have a less volatile account for the next few months. After the dust settles in my personal life, I plan to ramp up my risk again. Until then, I’m planning to use lower volatility ETFs for my at the money naked puts and farther out of the money naked puts or at the money covered calls on the more volatile ETFs and stocks.
Since I’m already …
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December 1, 2016
November was an amazing month, but for those of us who were short bonds, it was even better. I finally exited my TLT position in full as the price plummeted. I could’ve made more by hanging on and rolling my puts lower, but decided the easy money was made and I didn’t want the risk in my account right now, mostly for short-term personal reasons over concerns of the risk in staying short.
I ended November with a Net Liquidation Value (NLV) of $90,956.43 and …
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November 22, 2016
The last of my TLT limit orders hit this afternoon and I am finally completely out of my long series of TLT trades. While TLT was trading at $121.40, I bought to cover 500 shares of TLT at $121.40 and bought to close five TLT December $130 covered puts for $8.94. The combined order sold for $130.34 and I paid $65,176.41 including $6.41 in commission.
TLT dropped as I expected when I originally sold naked calls in September 2015, but it …
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November 21, 2016
Last week I mentioned I was in the process of starting over with my allocation. I’m moving slowly, but moving forward nonetheless. At the open, when TLT was trading at $121.15, my limit order hit and I bought to close 500 short shares of TLT for $121.15 and bought to close five TLT December $131 covered puts for $10.18 each. I paid $65,671.41 for the combination, including $6.41 in commission. I still have 500 TLT shares I’m short that are …
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November 18, 2016
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My only November option left to expire was the an IWM covered call. I could’ve let it expire and be called away. That inaction on my part would’ve saved me $2.38 in commission for this trade, but the data entry is easier this way in Quicken and I decided my couple of minutes saved is worth the commission expense.
While IWM was trading at $130.70, I sold 100 shares of IWM and bought one IWM November $123 covered call for a …
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