Adding to winners - Week in review (Sep 4 - Sep 8)
Been reading this trading book recently called "Best Loser Wins".
One of the main points of the book is to keep adding to winners, instead of just closing at a predetermined profit (e.g. 50% profit).
I tried to think how I should apply this concept to selling credit spreads.
So, I tried adding to an existing put credit spread that I thought would definitely expire out of the money:
Opened #
I added to my SPY bull put spread that was set to expire in a couple days. It ended up working out, and I made an extra $7.50 off of it. It could of been risky if there was a big drop suddenly though. 🤔
Also sold another naked put on CSCO, and continued with my weekly MSFT strategy.
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| SPY | open | BPS | 2023-09-05 | 2023-09-15 | 438 | 427 | 0.54 | 1 | 1.32 | 52.68 |
| CSCO | open | Short Put | 2023-09-05 | 2023-09-15 | 57 | 0 | 0.33 | 1 | 1.04 | 31.96 |
| BSX | open | BCS | 2023-09-05 | 2023-09-15 | 57.5 | 60 | 0.4 | 4 | 2.08 | 157.92 |
| MSFT | open | BPS | 2023-09-05 | 2023-12-15 | 290 | 280 | 1.15 | 1 | 2.11 | 112.89 |
| SPY | open | BPS | 2023-09-07 | 2023-09-08 | 438 | 428 | 0.1 | 1 | 2.5 | 7.5 |
| MMM | open | BCS | 2023-09-07 | 2023-11-17 | 115 | 120 | 0.75 | 2 | 1.48 | 148.52 |
Closed / Expired: #
Closed a couple more positions for nice profits. Trying not to get too excited though.
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SQ | open | BPS | 2023-08-23 | 2023-10-20 | 50 | 45 | 0.78 | 2 | 2.82 | 153.18 | $68.36 |
| SQ | close | BPS | 2023-09-05 | 2023-10-20 | 45 | 50 | -0.41 | 2 | 2.82 | -84.82 | |
| MRNA | open | BCS | 2023-08-25 | 2023-10-20 | 130 | 135 | 0.85 | 2 | 2.82 | 167.18 | $79.77 |
| 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 |
| SPY | expired | BPS | 2023-09-08 | 2023-09-08 | 428 | 438 | 0 | 1 | 0 | 0 | |
| SPY | open | BPS | 2023-09-07 | 2023-09-08 | 438 | 428 | 0.1 | 1 | 2.5 | 7.5 | $7.50 |
| SPY | expired | BPS | 2023-09-08 | 2023-09-08 | 428 | 438 | 0 | 1 | 0 | 0 |
- Closed Net Profits/Loss: $207.13
Notes and Lessons #
I guess another way to "add to winners" for credit spreads would be simply to open more positions with different expiry. For example, if SPY is in a great uptrend, I could just open new positions everyday with 10DTE (or some other time frame).
Not really sure, need to think about it more.
Will continue experimenting next week.