Bull to Bear - Week in review (Sep 18 - Sep 22)
Everything was going so well ... until it wasn't.
Things fell apart this week. My experiment from last week backfired, and turned into a big loss.
Then, I panicked and started opening more positions to try and reduce my losses which ended up in more losses.
Sigh. Another expensive learning experience ...
Opened / Assigned #
My short put on CSCO got assigned one week early. CSCO had a huge gap down after they acquired some other company. Not sure why, but that's how it goes...
- SPY (x3)
- AAPL
- MSFT
- MCD
- SO
- CSCO (assigned 100 shares)
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| CSCO | assigned | Short Put | 2023-09-23 | n/a | - | 57 | 0 | 100 | 0 | -5700 |
| SPY | open | BPS | 2023-09-19 | 2023-09-29 | 433 | 423 | 0.67 | 1 | 3.08 | 63.92 |
| AAPL | open | BPS | 2023-09-19 | 2023-11-17 | 165 | 160 | 0.69 | 2 | 1.41 | 136.59 |
| MSFT | open | BPS | 2023-09-19 | 2023-12-15 | 290 | 260 | 2.79 | 1 | 2.11 | 276.89 |
| MCD | open | BPS | 2023-09-19 | 2023-12-15 | 255 | 245 | 0.7 | 1 | 1.4 | 68.6 |
| SPY | open | BCS | 2023-09-19 | 2023-09-22 | 447.5 | 452.5 | 0.31 | 2 | 4.39 | 57.61 |
| SPY | open | BPS | 2023-09-21 | 2023-09-22 | 431 | 426 | 0.34 | 2 | 3.31 | 64.69 |
| SO | open | BCS | 2023-09-21 | 2023-11-17 | 75 | 77.5 | 0.32 | 4 | 3.52 | 124.48 |
Closed / Expired: #
Just terrible trade management. Hard to look at ðŸ«
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPY | open | BPS | 2023-09-12 | 2023-09-22 | 436 | 426 | 0.68 | 1 | 2.84 | 65.16 | -$214.24 |
| SPY | close | BPS | 2023-09-21 | 2023-09-22 | 426 | 436 | -2.78 | 1 | 1.4 | -279.4 | |
| SPY | open | BPS | 2023-09-14 | 2023-09-25 | 439 | 430 | 0.67 | 1 | 2.1 | 64.9 | -$404.50 |
| SPY | close | BPS | 2023-09-21 | 2023-09-25 | 430 | 439 | -4.68 | 1 | 1.4 | -469.4 | |
| SPY | open | BCS | 2023-09-19 | 2023-09-22 | 447.5 | 452.5 | 0.31 | 2 | 4.39 | 57.61 | $57.61 |
| 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 |
| SPY | close | BPS | 2023-09-22 | 2023-09-22 | 426 | 431 | -0.98 | 2 | 2.38 | -198.38 |
- Closed Net Profits/Loss: -$694.82
Notes and Lessons #
Gave back basically all my profits from the last three weeks.
My mental game let me down. Let emotions and panic get the better of me.
SPY mistakes #
SPY started plummeting after some interest rate news. I thought it wasn't such a big deal, but the market thought otherwise (which is what matters 😂).
The additional bull position I took on SPY last week ended up backfiring, and turned into a big loser. Tried cutting my loss like a good trader, but the market had big gap down, and my order didn't get filled. So, I ended up taking a loss 3x the size I wanted.
I also took a loss on the original weekly bull posiiton a bit late, although not too bad.
I actually entered a bear position early when the market looked like it was going down. Then, a couple days later I entered ANOTHER bull position (unintentionally making an iron condor), thinking it wouldn't drop any more. Of course, the market dropped just below my short put strike, and I ended up losing another $76.
If I had just stuck with my original strategy, and not fucked around so much, I would've only lost around $200.
Adding to winner experiment #
The main loss this week was from the additional position I took in SPY in an attempt to "add to winners".
I realize now that adding another credit spread with a later expiry date is introducing too much risk. It would've been better to add a position with the same expiry (though this would've also lost money).
Of course, if the market continued upwards, I would've thought I was a genius. 🤔
Perhaps, I should've closed out my original position early for a profit, then took another position at the original expiry, but higher strike prices (i.e. rolling). Something to think about for next time.
CSCO assigned #
My short put on CSCO got assigned a week early. I should've rolled it out again after the big drop in price last week, but I did not.
So, now I have 100 shares of CSCO to sell call options on.
My original cost is $57/share. When factoring in profits from naked puts ( $105), my cost is about $56/share.
So, as long as I can sell covered calls at $56 strike, I'll be breakeven.
The problem is that the price dropped a bit too much (currently $53), so I'm receiving barely any premium for selling calls at $56-57. That's the risk of naked puts.