Return of Naked Puts - Week in review (Aug 21 - 25)
I've decided to start selling naked puts again.
Selling naked puts is how I lost all my money last year. Will history repeat itself?
Possibly.
I am taking a more conservative approach this time, so won't blow up my account (max ~5k risk).
This week, I successfully (?) took a few more losses:
Opened: #
- CSCO (naked put)
- NKE
- SPY
- SQ
- IWM
- MRNA
| Ticker | Action (open/close) | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| CSCO | open | Put | 2023-08-21 | 2023-09-01 | 55 | 0 | 0.5 | 1 | 0.63 | 49.37 |
| NKE | open | BPS | 2023-08-22 | 2023-10-20 | 95 | 90 | 1.03 | 2 | 1.13 | 204.87 |
| SPY | open | BPS | 2023-08-22 | 2023-09-01 | 425 | 414 | 0.67 | 1 | 2.5 | 64.5 |
| SQ | open | BPS | 2023-08-23 | 2023-10-20 | 50 | 45 | 0.78 | 2 | 2.82 | 153.18 |
| IWM | open | BPS | 2023-08-24 | 2023-10-20 | 175 | 170 | 0.73 | 2 | 1.13 | 144.87 |
| MRNA | open | BCS | 2023-08-25 | 2023-10-20 | 130 | 135 | 0.85 | 2 | 2.82 | 167.18 |
Closed / Expired: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| PEP | open | BPS | 2023-08-08 | 2023-09-15 | 180 | 175 | 0.66 | 2 | 1.41 | 130.59 | -$362.23 |
| PEP | close | BPS | 2023-08-21 | 2023-09-15 | 175 | 180 | -2.45 | 2 | 2.82 | -492.82 | |
| SPY | open | BPS | 2023-08-14 | 2023-08-24 | 436 | 425 | 0.68 | 1 | 2.5 | 65.5 | $24.10 |
| SPY | close | BPS | 2023-08-23 | 2023-08-24 | 425 | 436 | -0.4 | 1 | 1.4 | -41.4 | |
| MRK | open | BCS | 2023-08-17 | 2023-10-20 | 115 | 120 | 0.88 | 1 | 1.4 | 86.6 | -$47.80 |
| MRK | close | BCS | 2023-08-23 | 2023-10-20 | 120 | 115 | -1.33 | 1 | 1.4 | -134.4 | |
| NKE | open | BPS | 2023-08-22 | 2023-10-20 | 95 | 90 | 1.03 | 2 | 1.13 | 204.87 | -$126.45 |
| NKE | close | BPS | 2023-08-23 | 2023-10-20 | 90 | 95 | -1.65 | 2 | 1.32 | -331.32 |
- Closed Net Profits/Loss: -$512.38 ðŸ˜
Notes and Lessons #
My losses have been piling up recently.
It's making me doubt my original strategy a bit. It seems I haven't won a trade for a long time, and the strategy depends on a high (>80%) win rate to be successful.
Perhaps I am cutting losses too quickly on some?
Fuck, I don't know.
Some of it is possibly bad luck, like NKE gapping down two days in a row (I cut the loss a bit late), and MRK with a crazy gap up for not much reason. These things happen though.
We'll give it a while longer before I abondon it for good.
Other strategies #
I've decided that I can't rely on the one option selling strategy, so have been making a list of a few other strategies to follow. Currently have four, maybe add 1 more to make it a nicer number of 5. 😂