Updates from June, 2017 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 22:45 on 2017-06-03 Permalink | Reply  

    May 2017 – Options Income 

    May was a good month on dollar basis, in Euro it was a loss of 600 Euros. I stopped trading my second account. I will redeploy to another broker soon.

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k
    • April: +1.1k
    • May: +1.1k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k
    • April: +1.5k
    • May +0.4k

    I’m looking at MTM numbers, and 1.1k is above my target of 2 %.

     
  • eurfi 7:01 on 2017-04-29 Permalink | Reply  

    April 2017 – Options Income 

    April was a very good month for my put selling strategies. Unfortunately, the weaker Dollar reduced my profits from 1.900 Dollars to just 400 Euros.

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k
    • April: +1.1k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k
    • April: +1.5k

    Second account (MTM)

    • March: +0.3k
    • April: +0.8k

    Second account (closed trades)

    • April: +1.1k

    The relief rally after the french election was very positive for my put selling strategies. Unfortunately, my main accounts suffered from the strong up move. Even the stocks I have (mostly REITs) could not profit.

    The challenge now is to (quickly) fill the inventory to be able to earn money in May. Yesterday I opened a first position and intent to open at least two more next week.

     
    • Financial Independence 11:43 on 2017-05-03 Permalink | Reply

      Hi eurfi,
      I quite benefited from strong euro and moved a lot from eur to weaker usd. I do not think that PIGS and the Brexit will help the stability. Congrats on the first cruise. I have been looking into one myself but decided to postpone it for the time being.

      Like

      • eurfi 14:30 on 2017-05-04 Permalink | Reply

        I can report afterwards how we liked it. Maybe we do it too early – one kid is still on diapers…

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        • eurfi 23:01 on 2017-06-03 Permalink

          There is day care for kids on board. Unfortunately they did not accept our youngest kid (because of the diapers). But next year it will be a great vacation. We all liked it, our kids more than my wife. But it was okay for her too.

          Like

    • Team CF 14:14 on 2017-05-08 Permalink | Reply

      That is quite the options income for April! Well done. It already covers about a third of your expenses for the month (pays for the cruise charge actually 😉 )

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      • eurfi 23:07 on 2017-05-08 Permalink | Reply

        I look at MTM numbers. So, 1.9k is usually more than half of our expenses. Yes, the cruise is covered. 🙂
        April was really good for put selling.

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  • eurfi 20:07 on 2017-04-01 Permalink | Reply  

    March 2017 – Options Income 

    Like mentioned last month, I opened a new account and trade a similar strategy. The starting capital is 20k (US Dollars).

    Far OTM option selling (MTM)

    • January: +1.9k
    • February: +0.5k
    • March: +0.9k

    Far OTM option selling (closed trades)

    • January: +1.6k
    • February: +0.8k
    • March: +0.4k

    Second account (MTM)

    • March: +0.3k

    There are no closed trades yet in this account.

    March was in line with my expectations. I did not trade the full position in my second account (testing waters). In an average month I expect to earn 900 + 400 (MTM – market-to-market).

     
  • eurfi 14:25 on 2017-03-01 Permalink | Reply  

    February 2017 – Options Income 

    January was a very good month. In February I let it slide. I did not follow my own rules and was under-invested. So the result is also lower than usual.

    Far OTM option selling (MTM)

    • January: 1.9k
    • February: 0.5k

    Far OTM option selling (closed trades)

    • January: 1.6k
    • February: 0.8k

    In March I will report about a second account, where I trade a similar put selling strategy. The starting balance is 20k. All numbers are in US Dollar.

    Like I said above, I did not follow my own rules in February. I did not open new trades as soon as old trades expired (thought the market is too high, IV too low). And there even was a period of 10 days where my account was empty! In my backtests I reopen on the same day of the exit. I even tested waiting one day – it results in less total profits. But still, in real life I think I’m more clever. This is an area I’m working on.

     
    • Investment Hunting 7:34 on 2017-03-02 Permalink | Reply

      Great results

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      • eurfi 16:59 on 2017-03-02 Permalink | Reply

        Thanks. Actually I’m disappointed, both about not following my rules and the – in my opinion – not so great result. But the year has 10 months left to make it better…

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    • Kilian 20:39 on 2017-03-10 Permalink | Reply

      Hi, I found you through easydividend’s link. I love how you also care more about MTM than closed trades. In my mind, MTM is the relevant measure. Options’ premium is dependent on the principal – in this case the strike of the underlying. If this underlying erodes, we get less premium. Therefore, reporting both numbers seems to be the sensible thing to do! 😀

      I wish you all the best for the months to come.

      Like

      • eurfi 22:44 on 2017-03-10 Permalink | Reply

        In a bull market (like now) the difference may be small, but in a bear market the difference might be huge (when you were assigned to a much higher price).
        Thanks, February was weak for me. March might be better…

        Like

  • eurfi 0:11 on 2017-02-02 Permalink | Reply  

    January 2017 – Options Income 

    A few weeks ago I came across the blog Options Hunting. The author compiles a list of monthly income by selling options. As I mostly sell options (I also have a few dividend stocks, mostly REITs), I wanted to take part in the friendly “competition”.

    I also found a German blog with another list: Easy Dividend.

    As this is my first monthly post, let me explain a little bit what I do. I have a simple strategy, were I sell far out-of-the-money options on the E-Mini S&P 500 futures. These options usually have 90 – 110 days left till expiration and I select the strike price to get a premium of 4 – 5 dollars. My profit target is 50 %. I have roughly 40k in the account (this account is in US Dollar – my other accounts are all in Euros). My expectation is around 2 % per month.

    With my main accounts I do complex options positions. These are multi-legged constructs. An Iron Condor is such an example (which I do not trade – I do not want to go into too much detail).

    Currently, my book keeping is not good enough, so I can only give MTM numbers from month to month. But this also includes dividends, stock gains and EUR/USD gains. So for the moment, I will leave this part out (the MTM numbers are in my net worth posts). But I plan to later include it – especially because the account size is bigger there.

    Far OTM option selling (MTM)

    • January 2017: 1.9k

    Far OTM option selling (closed trades)

    • January 2017: 1.6k

    January was a fabulous month. I gained over 4 % – double what I normally would expect.

    I only look at MTM changes and don’t care about closed trades. But I mention them here, because all the numbers of other traders seem to be based on this.

     
  • eurfi 21:26 on 2014-10-22 Permalink | Reply  

    October 2014 – Expiration Report 

    The October expiration (17th) fell somewhat in the recent dip. So I got assigned on a lot of stocks:

    • OKE for 65 (ouch)
    • AFL for 60
    • WFC for 50
    • XOM for 97,50 (ouch)

    I rolled a 125 PX put to next month and down to 120.

    And a few positions expired worthless (or I bought them back earlier):

    • YUM – 1 x 68.00 Put – $73.82
    • CSG – 6 x 7.50 Put – $115.26
    • ARCP – 4 x 12.50 Call – $99.76
    • OHI – 2 x 35.00 Put – $59.92

    So far my REITs are doing really well. The more traditional dividend stocks are mostly down. But this is just the beginning of a long journey. So I’m sure all will work out well…

    I also sold a few calls for my assigned positions (see above):

    • WFC – 50 Call – 11/14 (for $0.50)
    • OKE – 65 Call – 01/15 (for $1.10)
    • AFL – 60 Call – 02/15 (for $1.35)

    If my stocks are called away I will have sold them for the same price I bought them (via the put assignment). So my profit will then be the put premium, the dividend and the call premium.

    My next candidate for a short put is KO (Coca Cola) – it dropped down to around 40.

     
  • eurfi 22:03 on 2014-09-17 Permalink | Reply  

    September 2014 – Expiration Report 

    The expiration for monthly options is coming Friday, but I already closed my two September positions:

    • T – 2x 34.50 Put +$50
    • DE – 2x 82.50 Put +$97

    I closed them today, because I will be travelling on Friday. Also I wanted to close before the FED announcement – maybe I overreacted a little bit.

    The gain is very small and I’m not sure if it’s worth the risk. The implied volatility of quality dividend stocks is so low, the premiums are just not very high.

    I also bought some REIT stocks:

    • O – 100x 42.40
    • ARCP – 400x 12.45 (I also sold 4x 12.50 10/14 Call for 0.25)

    Realty Income (O) is between two strikes (40 and 45), so no good option was available. And for American Realty Capital Properties (ARCP) I sold the October 12.50 call. My premium was $0.25 – which means an entry price of $12.20. If I’m getting called my win will be $0.30 (12.50 – 12.20) which is roughly 2.5 % in one month. If I still get the September dividend, then it’s 3.1 %. Not bad.

     
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