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May 1, 2017

End of the Month Summary – April 2017

Filed under: Account Summary,Finance,Indices - 01 May 2017

My account had another month of gains, but I was still far under-invested and missed out on what could’ve been more. Maybe I’ll get off the sidelines a little more on the next dip. I missed a good opportunity while the VIX moved higher a couple of weeks ago, but keep waiting for a bigger drop.

I ended April with a Net Liquidation Value (NLV) of $100,970.02 and a Net Asset Value (NAV) of $100,996.36 according to Interactive Brokers (IB) after finishing March with an NLV of $100,480.73. I had a gain of $489.29 (~0.5%) on paper for April and no realized gains since I only sold a new naked put in April, but didn’t close any positions. I received no in dividends in April since I’m still not long shares of anything yet. Quicken reported that I have an account value of $100,968.88, which is the same as what IB says I have after adding in the $27.48 in accrued interest that IB is crediting me for.

I’m 50.59% invested in this account, 9.74% more than the end of March and still a lot less than I should be. As I said last month, I am waiting on a correction, but will have to take some risk at …

April 13, 2017

UWM – July Naked Put

Filed under: Finance - 13 Apr 2017

While UWM was trading at $109.90, I sold one UWM July $100 naked put for $4.30 and received $429.75 after paying $0.25 in commission.

I just realized I didn’t address in the video why I sold the July expiration. The nearer-term expirations didn’t offer enough of a premium to make it worth the trade and the longer-term expirations had too much time risk for my goals. By using the July expiration, I was able to sell far out of the money and get a good annualized return.

Here’s the link to the video for my process: https://youtu.be/0nSKnnZFTXM

April 8, 2017

SPY Chart – April 7, 2017

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

The chart below shows the daily prices for the past six months on SPY, the SPDR ETF that tracks the S&P 500 Index, after closing the week at $235.20, on April 7, 2017.

The S&P 500 has edged lower since peaking at the beginning of March, but the chart shows it hasn’t rolled over yet. The two trend lines that mark SPY’s higher lows converged at the intraday low on March 27, but both still maintain support from further lows. The longest trend line drawn below marks the trend of higher lows. The area between these sets of lines is called the trading channel and projects where SPY is likely to trade, until it breaks outside of either barrier.

Other technical indicators can help predict future movement too. The moving averages indicate directional patterns that help to highlight changes in sentiment. An index that falls below its moving average tends to fall further below it until a new catalyst or technical barrier influences its direction. I used the 20, 50, and 200-day moving averages in this …

April 3, 2017

End of the Month Summary – March 2017

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

My account gained a little more in March, but I took it easy overall due to other events in my life. My soon-to-be ex-wife and I sorted out everything and engaged an attorney to write it up for us. Now, we’re in the proofing stage and will file soon, which will open up more investing time for me. I also just got back from a week in Cuba with friends on Saturday. I highly recommend going if you can handle living with a few different ways of life. The people were great and I got the much-needed break from work that I wanted.

I ended March with a Net Liquidation Value (NLV) of $100,480.73 and a Net Asset Value (NAV) of $100,589.85 according to Interactive Brokers (IB) after finishing February with an NLV of $100,200.02. I had a gain of $280.71 (~0.3%) on paper for March and a realized gain of $229.90 from my IWM March naked put that expired worthless. I received no in dividends in March since I’m still not long shares of anything yet. Quicken reported that I have an account value of $100,568.40, which is the same as what IB says I have after adding in the $21.45 in accrued interest that IB is crediting me for.

I am …

March 17, 2017

Options Expiration – March 2017

Filed under: Finance - 17 Mar 2017

The only option I had in my account that expired today was an IWM March $135 naked put. It’ll expired worthless and I left it rather than spending a $1 to close the position. I opened a new position to replace it.

While IWM was trading at $138.42, I sold one IWM May $138 naked put for $3.47 and received $346.32 after paying $0.68 in commission. You can see my trade details here on YouTube.

I definitely need to open more exposure and will try to make time for it next week.

March 1, 2017

End of the Month Summary – February 2017

Filed under: Account Summary,Finance,Indices - 01 Mar 2017

The good news from February was that my new account is officially funded. The bad news is that I didn’t invest enough yet while the market continued to melt higher. I gained some, but not much at all. While my account is funded, I still feel like I should be very cautious until my divorce is final. It’s really more than the divorce that’s holding me back. I think we are due for a correction of at least 5%, but would love to see 10%. Unless something big happens, such as China shows bad economic news and/or Greece or another country starts its own EU exit process or debt restructuring, I don’t expect a decline that will last more than a couple of months. My outlook is based on the valuation of the S&P 500 and how steady this climb has been. Eventually we’ll revert to the mean and come closer to the 50 and 200-day moving averages. Still, I have too much on the sidelines even for that outlook.

I ended February with a Net Liquidation Value (NLV) of $100,200.02 and a Net Asset Value (NAV) of $100,202.80 according to Interactive Brokers (IB) after starting this account with $100,000.00 on February 2. After …

February 17, 2017

Options Expiration – February 2017

Filed under: Finance,Stock Picks - 17 Feb 2017

I only had one option expire today. It was in my old account and worked out as I hoped it would with an assignment just in the money. I’ll be assigned my one DIS February $110 covered call and will sell my 100 shares of DIS at $110. I bought these 100 shares after being assigned a $115 naked put in January 2016 after selling the put in November 2015. This is the longest hold I’ve had on a single stock in years and I made a realized gain of $43.52 including premiums.

These shares were in my old account and once the shares are assigned this weekend, I’ll be able to close that account and turn my complete focus to my new account. That is, assuming the closing price I saw at 4:00 held and DIS didn’t settle lower after the close. I did see it was trading lower after hours, but Interactive Brokers and TD Ameritrade show the closing price at $110.06 today versus the $110.02 I saw exactly at 4:00. Sometimes prices settle lower, but I might have lucked out here.

You can see my commentary of the last couple of minutes here on YouTube.

https://youtu.be/CiaVAD5BvsA

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 March $135 naked put for $2.31 and received $229.90 after paying $1.10 in commission. I opted to sell the March put versus the April put for a better annualized gain and because I figured I should sell the closer expiration first and spread out some of my next trades farther out on the calendar. By mid to late next week, when I expect to get around to another trade, the March puts will only be about five or five and a half weeks out and won’t bring in the premiums I’d like for the risk.

You can see me walk through the trade in this video.

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 $1.45, but realized after I finished the video below that it hit for $1.51, only after I lowered the limit order to $1.45 from $1.50. That has happened to me previously with Interactive Brokers and is always a bonus to get more than you agree to accept.

I’m considering a naked put on IWM next, but with the chart set-up, I thought I should give it another day or two.

You can see my trade logic in this video that I recorded as I placed the order through it being triggered.

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