Doubling down - Week in review (May 20 - May 24)
Not a great week.
Some poor decision making cost me good profits. Got assigned (again) on my naked put. MCD keeps tanking, putting me in a really bad position.
I still made a tiny profit this week though, so I guess it could always be worse.
Opened #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| SPY | open | BPS | 2024-05-21 | 2024-05-31 | 521 | 513 | 0.61 | 3 | 6.42 | 176.58 |
| GE | open | BPS | 2024-05-21 | 2024-07-19 | 150 | 145 | 1.02 | 1 | 1.27 | 100.73 |
| MSFT | open | BPS | 2024-05-21 | 2024-08-16 | 390 | 380 | 1.2 | 1 | 1.41 | 118.59 |
| CSCO | assigned | Short Put | 2024-05-24 | n/a | - | 47.5 | 0 | 100 | 0 | -4750 |
Weekly SPY and MSFT trades.
Accidentally only opened quantity of 1 on GE trade (instead of 2). It ended up closing for profit at end of the week; careless mistake costing me potential profits!
Also, got assigned on CSCO naked put at $47.50.
Closed / Expired: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MSFT | open | BPS | 2024-05-07 | 2024-08-16 | 370 | 360 | 1.27 | 1 | 1.4 | 125.6 | $64.20 |
| MSFT | close | BPS | 2024-05-21 | 2024-08-16 | 360 | 370 | -0.6 | 1 | 1.4 | -61.4 | |
| BA | open | BCS | 2024-05-07 | 2024-06-21 | 195 | 200 | 0.71 | 2 | 1.32 | 140.68 | -$150.80 |
| BA | close | BCS | 2024-05-20 | 2024-06-21 | 200 | 195 | -1.45 | 2 | 1.48 | -291.48 | |
| SPY | open | BPS | 2024-05-15 | 2024-05-24 | 516 | 507 | 0.52 | 2 | 2.8 | 101.2 | $101.20 |
| SPY | expired | BPS | 2024-05-24 | 2024-05-24 | 507 | 516 | 0 | 2 | 0 | 0 | |
| GE | open | BPS | 2024-05-21 | 2024-07-19 | 150 | 145 | 1.02 | 1 | 1.27 | 100.73 | $49.33 |
| GE | close | BPS | 2024-05-24 | 2024-07-19 | 145 | 150 | -0.5 | 1 | 1.4 | -51.4 |
- Closed Net Profits/Loss: $63.93
Closed my bearish BA position early for a loss, which ended up being a huge mistake. It seemed to be breaking out of its bearish trend, so I decided to take a smallish loss, instead of waiting for it to hit my max loss.
Then, a few days later, it tanked. I would've closed for nice profits if I just held on a bit longer.
Should I have been more patient? Probably. Hindsight is 20-20, but sucks anyways.
Notes and Lessons #
Buying the wrong quantity on GE, and closing position early (for a loss) on BA ended up costing me over $200.
Funny how a couple small decisions can screw up your profits so much.
Doubled down on CSCO #
My naked put on CSCO last week ended up getting assigned. I sold the put at $47.50 strike, so now I have 100 extra shares at $47.50.
This is the second time I've been assigned on CSCO short put (first time at a very high $57). So, now I actually have 200 shares at an average price of around $52. After factoring in the credits I got from selling puts, my average cost is about $51.43.
This is a bit too many shares for my liking (I don't want 10k invested in CSCO). Will sell covered calls at this recent entry ($47.50) in hopes to get out of half. Hopefully it doesn't keep tanking.
Not sure why I keep trading CSCO, should probably look for something else to trade naked puts on. CSCO is not really volatile enough, so if it moves away too far from the strike price, you get really bad return.