Grinding away - Weekly summary (Sep 30 - Oct 4)
Going all in on these 0DTE options recently.
Also thinking of abandoning my original options trading strategy.
It has not been profitable at all.
Thinking of adding another conservative options strategy (ITM Covered Calls + Dividends -- more details in summary).
Overall, it was an up and down week, finishing with small profits.
Below are the trades from last week. I've split 0DTE into its own section to try and clean things up.
Opened: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net |
|---|---|---|---|---|---|---|---|---|---|---|
| BITO | open | Long | 2024-09-30 | - | 0 | 19.285 | -19.285 | 100 | 1.01 | -1929.51 |
| BITO | open | Covered Call | 2024-09-30 | 2024-10-04 | 19 | 0 | 0.34 | 1 | 0.57 | 33.43 |
| QQQ | open | BCS | 2024-09-30 | 2024-10-25 | 490 | 491 | 0.49 | 1 | 2.13 | 46.87 |
| SPY | open | BCS | 2024-09-30 | 2024-10-25 | 576 | 577 | 0.54 | 1 | 2.13 | 51.87 |
| BITO | open | Short Put | 2024-10-01 | 2024-10-18 | 16 | 0 | 0.17 | 1 | 1.05 | 15.95 |
| IYR | open | BPS (IC) | 2024-10-01 | 2024-11-15 | 98 | 97 | 0.22 | 1 | 1.42 | 20.58 |
| IYR | open | BCS (IC) | 2024-10-01 | 2024-11-15 | 104 | 105 | 0.35 | 1 | 1.42 | 33.58 |
| XSP | open | BCS | 2024-10-01 | 2024-11-15 | 581 | 582 | 0.49 | 1 | 1.52 | 47.48 |
| VXX | open | BCS | 2024-10-02 | 2024-11-15 | 50 | 52 | 0.76 | 1 | 1.44 | 74.56 |
| SPY | open | BPS | 2024-10-02 | 2024-10-11 | 549 | 546 | 0.3 | 1 | 3.1 | 26.9 |
| XSP | open | BCS | 2024-10-03 | 2024-11-15 | 579 | 580 | 0.52 | 1 | 1.52 | 50.48 |
| XSP | open | BCS | 2024-10-04 | 2024-11-08 | 579 | 580 | 0.52 | 1 | 1.52 | 50.48 |
| SPY | open | BCS | 2024-10-04 | 2024-11-15 | 577 | 578 | 0.559999999999999 | 1 | 2.15 | 53.8499999999999 |
Tried to test out my new ITM (in the money) covered call + dividend strategy on BITO, but it did not work, as I got exercised the next day (ended up making $3 😂).
Will try again on something less volatile next time.
There was also a spike in volatility duringt he week, so I opened a short position on VXX. Not sure if my logic was correct. Only risking around $75 on it though.
Closed / Expired: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| LW | open | BCS | 2024-08-27 | 2024-10-18 | 62.5 | 65 | 1.15 | 1 | 0.61 | 114.39 | -$82.74 |
| LW | close | BCS | 2024-10-02 | 2024-10-18 | 65 | 62.5 | -1.95 | 1 | 2.13 | -197.13 | |
| BITO | open | Long | 2024-09-30 | - | 0 | 19.285 | -19.285 | 100 | 1.01 | -1929.51 | -$29.51 |
| BITO | close | Long | 2024-10-01 | - | 19 | 0 | 19 | 100 | 0 | 1900 | |
| BITO | open | Covered Call | 2024-09-30 | 2024-10-04 | 19 | 0 | 0.34 | 1 | 0.57 | 33.43 | $33.43 |
| BITO | assigned | Covered Call | 2024-10-01 | 2024-10-04 | 0 | 19 | 1 | 0 |
- Closed Net Profits/Loss: -$78.82
Ate my loss on LW. Held it for over a month, and it did nothing. Spiked up a bit after earnings last week, so I got out for a small loss.
BITO was an experiment of new strategy -- outlined in summary.
0DTE Trades: #
Didn't trade on Monday. Can't remember why. I think I was just too tired.
Traded the rest of the week though.
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPX | open | BCS (IC) | 2024-10-01 | 2024-10-01 | 5745 | 5770 | 0.6 | 1 | 3.12 | 56.88 | -$71.53 |
| SPX | close | BCS (IC) | 2024-10-01 | 2024-10-01 | 5770 | 5745 | -1.25 | 1 | 3.41 | -128.41 | |
| SPX | open | BPS (IC) | 2024-10-01 | 2024-10-01 | 5620 | 5580 | 0.55 | 1 | 3.12 | 51.88 | $45.32 |
| SPX | close | BPS (IC) | 2024-10-01 | 2024-10-01 | 5580 | 5620 | -0.05 | 1 | 1.56 | -6.56 | |
| SPX | open | BCS (IC) | 2024-10-01 | 2024-10-01 | 5740 | 5765 | 0.55 | 1 | 3.12 | 51.88 | -$61.53 |
| SPX | close | BCS (IC) | 2024-10-01 | 2024-10-01 | 5765 | 5740 | -1.1 | 1 | 3.41 | -113.41 | |
| SPX | open | BPS (IC) | 2024-10-01 | 2024-10-01 | 5650 | 5615 | 0.5 | 1 | 3.12 | 46.88 | $46.88 |
| SPX | expired | BPS (IC) | 2024-10-01 | 2024-10-01 | 5615 | 5650 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-01 | 2024-10-01 | 5670 | 5635 | 0.55 | 1 | 3.12 | 51.88 | $51.88 |
| SPX | expired | BPS (IC) | 2024-10-01 | 2024-10-01 | 5635 | 5670 | 0 | 1 | 0 | 0 | |
| SPX | open | BCS (IC) | 2024-10-01 | 2024-10-01 | 5760 | 5780 | 0.55 | 1 | 3.12 | 51.88 | $51.88 |
| SPX | expired | BCS (IC) | 2024-10-01 | 2024-10-01 | 5780 | 5760 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-01 | 2024-10-01 | 5690 | 5645 | 0.5 | 1 | 3.12 | 46.88 | -$61.33 |
| SPX | close | BPS (IC) | 2024-10-01 | 2024-10-01 | 5645 | 5690 | -1.05 | 1 | 3.21 | -108.21 | |
| SPX | open | BCS (IC) | 2024-10-01 | 2024-10-01 | 5750 | 5775 | 0.7 | 1 | 3.12 | 66.88 | $66.88 |
| SPX | expired | BCS (IC) | 2024-10-01 | 2024-10-01 | 5775 | 5750 | 0 | 1 | 0 | 0 | |
| SPX | open | BCS (IC) | 2024-10-02 | 2024-10-02 | 5735 | 5760 | 0.6 | 1 | 3.12 | 56.88 | $56.88 |
| SPX | expired | BCS (IC) | 2024-10-02 | 2024-10-02 | 5760 | 5735 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-02 | 2024-10-02 | 5650 | 5610 | 0.6 | 1 | 3.12 | 56.88 | $56.88 |
| SPX | expired | BPS (IC) | 2024-10-02 | 2024-10-02 | 5610 | 5650 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-02 | 2024-10-02 | 5680 | 5640 | 0.55 | 1 | 3.12 | 51.88 | -$71.33 |
| SPX | expired | BPS (IC) | 2024-10-02 | 2024-10-02 | 5640 | 5680 | -1.2 | 1 | 3.21 | -123.21 | |
| SPX | open | BCS (IC) | 2024-10-02 | 2024-10-02 | 5735 | 5765 | 0.6 | 1 | 3.12 | 56.88 | $56.88 |
| SPX | expired | BCS (IC) | 2024-10-02 | 2024-10-02 | 5765 | 5735 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-02 | 2024-10-02 | 5675 | 5645 | 0.6 | 1 | 3.12 | 56.88 | $53.67 |
| SPX | expired | BPS (IC) | 2024-10-02 | 2024-10-02 | 5645 | 5675 | 0 | 1 | 3.21 | -3.21 | |
| SPX | open | BCS (IC) | 2024-10-02 | 2024-10-02 | 5730 | 5755 | 0.55 | 1 | 3.12 | 51.88 | $51.88 |
| SPX | expired | BCS (IC) | 2024-10-02 | 2024-10-02 | 5755 | 5730 | 0 | 1 | 0 | 0 | |
| SPX | open | BCS (IC) | 2024-10-03 | 2024-10-03 | 5725 | 5755 | 0.5 | 1 | 3.12 | 46.88 | -$76.33 |
| SPX | close | BCS (IC) | 2024-10-03 | 2024-10-03 | 5755 | 5725 | -1.2 | 1 | 3.21 | -123.21 | |
| SPX | open | BPS (IC) | 2024-10-03 | 2024-10-03 | 5620 | 5575 | 0.6 | 1 | 3.12 | 56.88 | $56.88 |
| SPX | expired | BPS (IC) | 2024-10-03 | 2024-10-03 | 5575 | 5620 | 0 | 1 | 0 | 0 | |
| SPX | open | BCS (IC) | 2024-10-03 | 2024-10-03 | 5725 | 5750 | 0.5 | 1 | 3.12 | 46.88 | $46.88 |
| SPX | expired | BCS (IC) | 2024-10-03 | 2024-10-03 | 5750 | 5725 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-03 | 2024-10-03 | 5640 | 5595 | 0.55 | 1 | 3.12 | 51.88 | $51.88 |
| SPX | expired | BPS (IC) | 2024-10-03 | 2024-10-03 | 5595 | 5640 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-04 | 2024-10-04 | 5680 | 5625 | 0.55 | 1 | 3.12 | 51.88 | -$66.53 |
| SPX | expired | BPS (IC) | 2024-10-04 | 2024-10-04 | 5625 | 5680 | -1.15 | 1 | 3.41 | -118.41 | |
| SPX | open | BCS (IC) | 2024-10-04 | 2024-10-04 | 5765 | 5790 | 0.5 | 1 | 3.12 | 46.88 | $46.88 |
| SPX | expired | BCS (IC) | 2024-10-04 | 2024-10-04 | 5790 | 5765 | 0 | 1 | 0 | 0 | |
| SPX | open | BPS (IC) | 2024-10-04 | 2024-10-04 | 5675 | 5620 | 0.55 | 1 | 3.12 | 51.88 | $51.88 |
| SPX | expired | BPS (IC) | 2024-10-04 | 2024-10-04 | 5620 | 5675 | 0 | 1 | 0 | ||
| SPX | open | BCS (IC) | 2024-10-04 | 2024-10-04 | 5755 | 5780 | 0.6 | 1 | 3.12 | 56.88 | -$66.33 |
| SPX | expired | BCS (IC) | 2024-10-04 | 2024-10-04 | 5780 | 5755 | -1.2 | 1 | 3.21 | -123.21 | |
| SPX | open | BCS (IC) | 2024-10-04 | 2024-10-04 | 5750 | 5780 | 0.55 | 1 | 3.12 | 51.88 | -$55.12 |
| SPX | assigned | BCS (IC) | 2024-10-04 | 2024-10-04 | 5780 | 5750 | -1.07 | 1 | 0 | -107 | |
| SPX | open | BPS (IC) | 2024-10-04 | 2024-10-04 | 5695 | 5655 | 0.5 | 1 | 3.12 | 46.88 | $46.88 |
| SPX | expired | BPS (IC) | 2024-10-04 | 2024-10-04 | 5655 | 5695 | 0 | 1 | 0 |
-
0DTE Closed Net Profits/Loss: $310.28
-
TOTAL WEEKLY NET PROFITS/LOSS: $231.46
Was a pretty good week for my 0DTE trades.
Only Friday was a losing day. Big win on Tuesday, and small wins on the other days.
Notes and Lessons #
Abandoning OG strategy #
I am going to stop trading my original options strategy for now-- i.e. stochastics + trend strategy.
After looking through my trades, it has not made me any money. It has actually lost me over $500 this year (January - present). If I go back to last year, it has lost me thousands of dollars.
A lot of the losses are my own fault for not getting out when I should, but perhaps that's a sign that the strategy doesn't work for me.
It also takes more time to pick + choose trades, so I will just leave it for now.
Also noticed that the original guy I studied the strategy from is now just trading calendar spreads or naked positions instead of vertical spreads. My account is not big enough right now to do this.
ITM Covered Calls + Dividend Strategy #
Came across a new options strategy selling "in the money" (ITM) covered calls on theta profits blog.
It is a conservative strategy, that aims to make 20% to 30% annual return..
Basically, you buy 100 shares of some stable company/ETF, then sell calls on it at a strike price BELOW the price you paid for.
For example, you bought a stock for $100. You then sell a call on the stock at a strike price of $98. You receive a premium of $2.50.
So, you're breakeven price is now actually $97.50.
At expiration, you want the stock price to be above $98, so that you get your shares assigned. If this happens, your shares will be sold for $98, and you retain the remaining premium of 0.50.
If the company has a dividend during the time you're holding, then you also make the dividend.
In the above example, if you got paid a dividend of $0.50 per share, then you actually make a combined $1 premium if all works out.
Does it work? #
The strategy above seems quite straightforward in concept. In practice, things never work out as you think though.
I will be experimenting and doing some more research over the next month or so.
I tried it on BITO last week, but I got assigned before anything could happen. It was probably a good thing, because BITO tanked a bit, and I would be in the hole right now.
Will need to find some less volatile and cheap (i.e. under $50/share) stocks/ETFS to play with.
On to the next week!