How I LOST $379 in September 2023 trading options
Third losing month in a row. Whoop.
Would've actually been a winning month, had I not started experimenting. Oh well. Could've, would've, should've.
Got a little bit better cutting my losses, although still held on for too long. The false "hope" that your brain feels when you're in a losing position is harder to overcome than it seems.
September 2023 Closed Trades #
| Ticker | Action | Type | Trade Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fees | Total | Net Profit/Loss | Days | Annual Return |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MSFT | open | BPS | 2023-07-18 | 2023-10-20 | 300 | 290 | 1.02 | 1 | 1.4 | 100.6 | $58.50 | 58 | 36.81% |
| MSFT | close | BPS | 2023-09-14 | 2023-10-20 | 290 | 300 | -0.4 | 1 | 2.1 | -42.1 | |||
| MSFT | open | BPS | 2023-07-27 | 2023-10-20 | 295 | 280 | 1.33 | 1 | 2.81 | 130.19 | $65.29 | 40 | 39.72% |
| MSFT | close | BPS | 2023-09-05 | 2023-10-20 | 280 | 295 | -0.63 | 1 | 1.9 | -64.9 | |||
| MSFT | open | BPS | 2023-08-08 | 2023-09-15 | 285 | 275 | 1.27 | 1 | 1.27 | 125.73 | $64.33 | 34 | 69.06% |
| MSFT | close | BPS | 2023-09-11 | 2023-09-15 | 275 | 285 | -0.6 | 1 | 1.4 | -61.4 | |||
| CSCO | open | Short Put | 2023-08-21 | 2023-09-01 | 55 | 0 | 0.5 | 1 | 0.63 | 49.37 | $49.37 | 11 | 29.79% |
| CSCO | expired | Short Put | 2023-09-01 | 2023-09-01 | 0 | 55 | 0 | 1 | 0 | 0 | |||
| SPY | open | BPS | 2023-08-22 | 2023-09-01 | 425 | 414 | 0.67 | 1 | 2.5 | 64.5 | $64.50 | 10 | 214.02% |
| SPY | expired | BPS | 2023-09-01 | 2023-09-01 | 414 | 425 | 0 | 1 | 0 | ||||
| SQ | open | BPS | 2023-08-23 | 2023-10-20 | 50 | 45 | 0.78 | 2 | 2.82 | 153.18 | $68.36 | 13 | 191.93% |
| SQ | close | BPS | 2023-09-05 | 2023-10-20 | 45 | 50 | -0.41 | 2 | 2.82 | -84.82 | |||
| IWM | open | BPS | 2023-08-24 | 2023-10-20 | 175 | 170 | 0.73 | 2 | 1.13 | 144.87 | $71.46 | 8 | 326.04% |
| IWM | close | BPS | 2023-09-01 | 2023-10-20 | 170 | 175 | -0.36 | 2 | 1.41 | -73.41 | |||
| MRNA | open | BCS | 2023-08-25 | 2023-10-20 | 130 | 135 | 0.85 | 2 | 2.82 | 167.18 | $79.77 | 12 | 242.63% |
| MRNA | close | BCS | 2023-09-06 | 2023-10-20 | 135 | 130 | -0.43 | 2 | 1.41 | -87.41 | |||
| SPY | open | BPS | 2023-08-29 | 2023-09-08 | 438 | 428 | 0.54 | 1 | 2.5 | 51.5 | $51.50 | 10 | 187.98% |
| SPY | expired | BPS | 2023-09-08 | 2023-09-08 | 428 | 438 | 0 | 1 | 0 | 0 | |||
| SPY | open | BPS | 2023-09-05 | 2023-09-15 | 438 | 427 | 0.54 | 1 | 1.32 | 52.68 | $52.68 | 10 | 174.80% |
| SPY | expired | BPS | 2023-09-15 | 2023-09-15 | 427 | 438 | 0 | 1 | 0 | 0 | |||
| BSX | open | BCS | 2023-09-05 | 2023-09-15 | 57.5 | 60 | 0.4 | 4 | 2.08 | 157.92 | $52.33 | 21 | 90.95% |
| BSX | close | BCS | 2023-09-26 | 2023-09-15 | 60 | 57.5 | -0.26 | 4 | 1.59 | -105.59 | |||
| SPY | open | BPS | 2023-09-07 | 2023-09-08 | 438 | 428 | 0.1 | 1 | 2.5 | 7.5 | $7.50 | 1 | 273.75% |
| SPY | expired | BPS | 2023-09-08 | 2023-09-08 | 428 | 438 | 0 | 1 | 0 | 0 | |||
| MMM | open | BCS | 2023-09-07 | 2023-11-17 | 115 | 120 | 0.75 | 2 | 1.48 | 148.52 | $71.71 | 6 | 436.24% |
| MMM | close | BCS | 2023-09-13 | 2023-11-17 | 120 | 115 | -0.37 | 2 | 2.81 | -76.81 | |||
| SPY | open | BPS | 2023-09-12 | 2023-09-22 | 436 | 426 | 0.68 | 1 | 2.84 | 65.16 | -$214.24 | 9 | -868.86% |
| SPY | close | BPS | 2023-09-21 | 2023-09-22 | 426 | 436 | -2.78 | 1 | 1.4 | -279.4 | |||
| SBUX | open | BPS | 2023-09-12 | 2023-11-17 | 90 | 85 | 0.9 | 2 | 2.81 | 177.19 | -$135.53 | 14 | -353.35% |
| SBUX | close | BPS | 2023-09-26 | 2023-11-17 | 85 | 90 | -1.55 | 2 | 2.72 | -312.72 | |||
| SPY | open | BPS | 2023-09-14 | 2023-09-25 | 439 | 430 | 0.67 | 1 | 2.1 | 64.9 | -$404.50 | 7 | -2343.53% |
| SPY | close | BPS | 2023-09-21 | 2023-09-25 | 430 | 439 | -4.68 | 1 | 1.4 | -469.4 | |||
| SPY | open | BPS | 2023-09-19 | 2023-09-29 | 433 | 423 | 0.67 | 1 | 3.08 | 63.92 | -$308.34 | 6 | -1875.74% |
| SPY | close | BPS | 2023-09-25 | 2023-09-29 | 423 | 433 | -3.71 | 1 | 1.26 | -372.26 | |||
| SPY | open | BCS | 2023-09-19 | 2023-09-22 | 447.5 | 452.5 | 0.31 | 2 | 4.39 | 57.61 | $57.61 | 3 | 700.92% |
| SPY | close | BCS | 2023-09-22 | 2023-09-22 | 452.5 | 447.5 | 0 | 2 | 0 | 0 | |||
| SPY | open | BPS | 2023-09-21 | 2023-09-22 | 431 | 426 | 0.34 | 2 | 3.31 | 64.69 | -$133.69 | 1 | -4879.68% |
| SPY | close | BPS | 2023-09-22 | 2023-09-22 | 426 | 431 | -0.98 | 2 | 2.38 | -198.38 | |||
| SO | open | BCS | 2023-09-21 | 2023-11-17 | 75 | 77.5 | 0.32 | 4 | 3.52 | 124.48 | $54.28 | 5 | 396.24% |
| SO | close | BCS | 2023-09-26 | 2023-11-17 | 77.5 | 75 | -0.17 | 4 | 2.2 | -70.2 | |||
| TXN | open | BPS | 2023-09-26 | 2023-11-17 | 150 | 140 | 1.6 | 1 | 1.4 | 158.6 | -$52.81 | 1 | -1927.56% |
| TXN | close | BPS | 2023-09-27 | 2023-11-17 | 140 | 150 | -2.1 | 1 | 1.41 | -211.41 | |||
| TOTAL | -$379.92 | ||||||||||||
| Win % | 70.00% | ||||||||||||
| Avg. Win/Loss | -$21.92 | ||||||||||||
| Number of trades | 20 |
Notes and Thoughts #
Experiment failed #
Biggest lost this month (-$400) was on an extra SPY position that I took in an attempt to use the "add to winners" philosophy.
The market then tanked, and I lost.
I believe my mistake was opening a position at a different / farther out expiry date. I should have opened the position at the same expiry date as the existing position. Using a different expiry date introduces too much risk, especially when it's over the weekend (you never know what shit is going to happen).
Will try again when I feel a bit more confident.
Cutting losses #
My losses were also a bit bigger than they should've been, because I was still a bit late cutting losses. I'm improving, but not as cold and heartless as I need to be.
Sometimes the market gaps down big though, so there's not much you can do.
Being more flexible on profit taking #
Currently, one of my main credit spread strategies is to take profits at 50%.
I'm thinking that I may need to be more flexible with this.
Sometimes, it makes sense to take profits early (i.e. less than 50%), when the stock looks like it is hitting resistance/support.
Sometimes it makes sense to let profits run more when it looks obvious that the price will continue trending farther up/down.
Will try an experiment with this next month.