Lucky break - Week in review (Feb 12 - Feb 16)
The market gapped down big last week, then immediately went back up the next day.
This ended up working out well in my favor, as my pre-market order filled with a much better than expected premium.
Overall, another nice profitable week. More details below:
Opened #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| MSFT | open | BPS | 2024-02-12 | 2024-05-17 | 375 | 360 | 1.61 | 1 | 1.26 | 159.74 |
| MSFT | close | BPS | 2024-02-16 | 2024-05-17 | 360 | - | 3.84 | 1 | 0.7 | 383.3 |
| MSFT | open | BPS | 2024-02-16 | 2024-05-17 | - | 330 | -1.5 | 1 | 0.7 | -150.7 |
| SPY | open | BPS | 2024-02-13 | 2024-02-23 | 490 | 480 | 1.42 | 2 | 3.12 | 280.88 |
| WFC | open | BPS | 2024-02-13 | 2024-04-19 | 45 | 42.5 | 0.35 | 4 | 2.23 | 137.77 |
| SPY | open | BPS | 2024-02-16 | 2024-02-23 | 493 | 484 | 0.39 | 1 | 3.08 | 35.92 |
| V | open | BPS | 2024-02-16 | 2024-05-17 | 260 | 250 | 1.01 | 2 | 1.11 | 200.89 |
I unintentionally turned a MSFT 375/360 bull put spread into a 375/330 spread.
Also, opened two seperate positions on SPY. The first position I took received a much higher than expected premium because the market gapped down on open. I decided to close it early, to lock in the profits after a couple days.
Then, I kind of regretted closing it early, so took another small position, for quite a lousy premium. Maybe shouldn't have done that. A bit undisciplined trading on my part.
Closed / Expired: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| PG | open | BPS | 2024-01-24 | 2024-02-02 | 145 | 135 | 0.8 | 1 | 1.26 | 78.74 | $38.64 |
| PG | close | BPS | 2024-02-16 | 2024-02-02 | 135 | 145 | -0.38 | 1 | 2.1 | -40.1 | |
| SPY | open | BPS | 2024-02-06 | 2024-02-16 | 482 | 471 | 0.59 | 2 | 2.2 | 115.8 | $115.80 |
| SPY | expired | BPS | 2024-02-16 | 2024-02-16 | 471 | 482 | 0 | 2 | 0 | 0 | |
| PDD | open | BPS | 2024-02-08 | 2024-03-15 | 115 | 110 | 0.82 | 2 | 1.39 | 162.61 | $81.22 |
| PDD | close | BPS | 2024-02-15 | 2024-03-15 | 110 | 115 | -0.4 | 2 | 1.39 | -81.39 | |
| SPY | open | BPS | 2024-02-13 | 2024-02-23 | 490 | 480 | 1.42 | 2 | 3.12 | 280.88 | $174.09 |
| SPY | close | BPS | 2024-02-15 | 2024-02-23 | 480 | 490 | -0.52 | 2 | 2.79 | -106.79 | |
| WFC | open | BPS | 2024-02-13 | 2024-04-19 | 45 | 42.5 | 0.35 | 4 | 2.23 | 137.77 | $66.98 |
| WFC | close | BPS | 2024-02-16 | 2024-04-19 | 42.5 | 45 | -0.17 | 4 | 2.79 | -70.79 |
- Closed Net Profits/Loss: $476.73
One of my best weeks ever, profit wise. Looking at it now though, I shouldn't have closed the SPY trade early. Even though percentage wise (i.e. annualized return), it sort of makes sense to close it early (1500% vs 500% annualized return), I think it would have been better to just let it run to expiry.
Notes and Lessons #
There was a quick sell off earlier in the week, but then it bounced right back, and is holding above the 20EMA really well.
The gap down scared me a little bit, and I was looking for some bearish positions to take. I'm getting a bit nervous with all my bullish positions, but it has worked out so far. The market is basically on a 3-month bull run right now.
Just keep sticking to the plan!