More big losses + New strategies - Weekly summary (Feb 24 - Feb 28)
Huge loss this week.
Third losing week in a row.
Started testing out a couple of new strategies.
The one new 0DTE strategy was actually the main source of my losses.
So...not a great idea so far. 😅
Here's the trades from the past week:
Opened: #
| Ticker | Type | Entry Date | Expiry Date | Sell Strike | Buy Strike | Premium | Open Qty | Fee open | Net Premium |
|---|---|---|---|---|---|---|---|---|---|
| SPY | BPS | 2025-02-24 | 2025-04-17 | 560 | 555 | 0.49 | 1 | 1.43 | 47.57 |
| BITO | Short Put | 2025-02-25 | 2025-02-28 | 19.5 | 0 | 0.24 | 1 | 0.81 | 23.19 |
| XLF | Long Call | 2025-02-26 | 2026-01-16 | 0 | 40 | -12.85 | 1 | 0.64 | -1285.64 |
| SPY | BCS | 2025-02-27 | 2025-04-17 | 601 | 602 | 0.51 | 1 | 1.44 | 49.56 |
| MSFT | BPS | 2025-02-28 | 2025-05-16 | 400 | 380 | 8.71 | 1 | 1.48 | 869.52 |
Weekly SPY put credit spread.
Another short put on BITO. Bitcoin has been tanking recently, and my position in BITO is already too large, but I couldn't resist the urge.
Trying out new "LEAPS" strategy with XLF -- buying deep-in-the-money long calls with 300+ days to expiry.
Basically, it's an alternative form to taking a long position in a security.
Rolled out a MSFT position from December 2024. It is getting dangerously close to being in the money, so pushed it out with around 20DTE.
Closed / Expired: #
| Ticker | Action | Type | Date | Expiry | Sell Strike | Buy Strike | Premium | Qty | Fee | Net | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPY | open | BCS | 2025-01-08 | 2025-02-28 | 594 | 595 | 0.549999999999999 | 1 | 2.14 | 52.8599999999999 | $4.84 |
| SPY | close | BCS | 2025-02-25 | 2025-02-28 | 595 | 594 | -0.46 | 1 | 2.02 | -48.02 |
| Ticker | Type | Entry Date | Expiry Date | Sell Strike | Buy Strike | Premium | Open Qty | Fee open | Net Premium | Close Date | Close Cost | Close Qty | Fee close | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SPY | BCS | 2025-01-14 | 2025-02-28 | 588 | 589 | 0.5 | 1 | 3.07 | 46.93 | 2025-02-28 | -0.44 | 1 | 3.1 | -0.17 |
| SPY | BCS | 2025-01-21 | 2025-03-21 | 607 | 608 | 0.53 | 1 | 1.44 | 51.56 | 2025-02-28 | -0.2 | 1 | 2.12 | 29.44 |
| SPY | BCS | 2025-01-28 | 2025-03-31 | 610 | 611 | 0.54 | 1 | 2.15 | 51.85 | 2025-02-27 | -0.2 | 1 | 2.12 | 29.73 |
| SPY | BCS | 2025-01-29 | 2025-03-07 | 608 | 609 | 0.53 | 1 | 2.14 | 50.86 | 2025-02-25 | -0.2 | 1 | 3.1 | 27.76 |
| SPY | BCS | 2025-01-31 | 2025-03-14 | 614 | 615 | 0.51 | 1 | 1.44 | 49.56 | 2025-02-25 | -0.2 | 1 | 3.1 | 26.46 |
| QQQ | BCS | 2025-02-13 | 2025-04-04 | 541 | 542 | 0.5 | 1 | 1.44 | 48.56 | 2025-02-27 | -0.2 | 1 | 1.42 | 27.14 |
| SPY | BCS | 2025-02-13 | 2025-04-04 | 611 | 612 | 0.53 | 1 | 1.44 | 51.56 | 2025-02-28 | -0.2 | 1 | 1.92 | 29.64 |
| SPY | BCS | 2025-02-18 | 2025-04-04 | 616 | 617 | 0.5 | 1 | 2.14 | 47.86 | 2025-02-27 | -0.2 | 1 | 1.42 | 26.44 |
| SPY | BCS | 2025-02-19 | 2025-03-31 | 615 | 616 | 0.54 | 1 | 2.14 | 51.86 | 2025-02-25 | -0.2 | 1 | 1.42 | 30.44 |
| BITO | Short Put | 2025-02-25 | 2025-02-28 | 19.5 | 0 | 0.24 | 1 | 0.81 | 23.19 | 2025-02-28 | 0 | 1 | 0 | 23.19 |
- Closed Net Profits/Loss: $254.91
An excellent week for my Option Alpha Trade Ideas strategy.
Makes me wish I didn't even trade 0DTE...🥲
0DTE Trades #
| Ticker | Type | Entry Date | Expiry Date | Sell Strike | Buy Strike | Premium | Open Qty | Fee open | Net Premium | Exit Date | Close Cost | Close Qty | Fee close | Profit/Loss |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SPX | BPS | 2025-02-24 | 2025-02-24 | 5945 | 5875 | 0.8 | 1 | 3.12 | 76.88 | 2025-02-24 | -1.65 | 1 | 3.21 | -91.33 |
| SPX | BPS | 2025-02-24 | 2025-02-24 | 5975 | 5910 | 0.85 | 1 | 3.12 | 81.88 | 2025-02-24 | -0.25 | 1 | 3.12 | 53.76 |
| SPX | BPS | 2025-02-24 | 2025-02-24 | 6000 | 5945 | 0.95 | 1 | 3.21 | 91.79 | 2025-02-24 | -2 | 1 | 3.41 | -111.62 |
| SPX | BCS | 2025-02-24 | 2025-02-24 | 6015 | 6020 | 1.25 | 1 | 3.3 | 121.7 | 2025-02-24 | -0.55 | 1 | 3.12 | 63.58 |
| SPX | BCS | 2025-02-24 | 2025-02-24 | 6010 | 6040 | 0.95 | 1 | 3.21 | 91.79 | 2025-02-24 | -2 | 1 | 1.65 | -109.86 |
| SPX | BCS | 2025-02-25 | 2025-02-25 | 6005 | 6060 | 0.9 | 1 | 3.21 | 86.79 | 2025-02-25 | -0.25 | 1 | 3.12 | 58.67 |
| SPX | BPS | 2025-02-25 | 2025-02-25 | 5910 | 5845 | 0.85 | 1 | 3.21 | 81.79 | 2025-02-25 | -1.75 | 1 | 3.21 | -96.42 |
| SPX | BPS | 2025-02-25 | 2025-02-25 | 5895 | 5825 | 0.95 | 1 | 3.21 | 91.79 | 2025-02-25 | -0.25 | 1 | 3.12 | 63.67 |
| SPX | BCS | 2025-02-25 | 2025-02-25 | 5975 | 5980 | 1.35 | 1 | 3.5 | 131.5 | 2025-02-25 | -0.6 | 1 | 3.12 | 68.38 |
| SPX | BCS | 2025-02-25 | 2025-02-25 | 5970 | 6000 | 1 | 1 | 3.21 | 96.79 | 2025-02-25 | -0.3 | 1 | 1.56 | 65.23 |
| SPX | BPS | 2025-02-26 | 2025-02-26 | 5885 | 5815 | 0.9 | 1 | 3.21 | 86.79 | 2025-02-26 | -0.25 | 1 | 3.12 | 58.67 |
| SPX | BPS | 2025-02-26 | 2025-02-26 | 5940 | 5875 | 0.9 | 1 | 3.21 | 86.79 | 2025-02-26 | -1.8 | 1 | 3.41 | -96.62 |
| SPX | BCS | 2025-02-26 | 2025-02-26 | 6010 | 6060 | 1 | 1 | 3.21 | 96.79 | 2025-02-26 | -0.3 | 1 | 1.56 | 65.23 |
| SPX | BPS | 2025-02-26 | 2025-02-26 | 5930 | 5895 | 1.1 | 1 | 3.21 | 106.79 | 2025-02-26 | -2.25 | 1 | 3.21 | -121.42 |
| SPX | BCS | 2025-02-26 | 2025-02-26 | 5950 | 5955 | 1.35 | 1 | 3.5 | 131.5 | 2025-02-26 | -5 | 1 | 0 | -368.5 |
| SPX | BPS | 2025-02-27 | 2025-02-27 | 5905 | 5840 | 0.95 | 1 | 3.21 | 91.79 | 2025-02-27 | -1.95 | 1 | 3.41 | -106.62 |
| SPX | BCS | 2025-02-27 | 2025-02-27 | 5925 | 5930 | 0.95 | 1 | 3.3 | 91.7 | 2025-02-27 | -0.4 | 1 | 3.3 | 48.4 |
| SPX | BPS | 2025-02-28 | 2025-02-28 | 5795 | 5730 | 0.85 | 1 | 3.21 | 81.79 | 2025-02-28 | -1.75 | 1 | 3.21 | -96.42 |
| SPX | BCS | 2025-02-28 | 2025-02-28 | 5940 | 6000 | 0.85 | 1 | 3.12 | 81.88 | 2025-02-28 | -1.8 | 1 | 3.21 | -101.33 |
| SPX | BCS | 2025-02-28 | 2025-02-28 | 5910 | 5915 | 1.15 | 1 | 3.3 | 111.7 | 2025-02-28 | -5 | 1 | 0 | -388.3 |
| SPX | BPS | 2025-02-28 | 2025-02-28 | 5850 | 5790 | 0.85 | 1 | 3.12 | 81.88 | 2025-02-28 | -0.25 | 1 | 1.56 | 55.32 |
- 0DTE Closed Net Profits/Loss: -$1087.53
My new 0DTE strategy didn't help at all. It actually doubled my losses
Total Profit / Loss #
- 0DTE trades = -$1087.53
- Other trades = $254.91
NET PROFIT / LOSS = -$-832.62
Notes, Lessons and Thoughts #
Big fat loss to end the month.
Doesn't feel great.
Drawdowns are expected. That's what I always tell myself.
It's always harder to stomach when it actually happens.
New 0DTE strategy #
My new 0dte strategy is based off backtest on Option Alpha.
The basic strategy is: Everyday at 3pm, open a 25 delta bear call spread on SPX. Take profits around 55%.
It had pretty positive results in the backtest over the past 3 years.
Perhaps my timing this week was just bad. It actually did win the first 2 days, and I thought I was a genius.
Will make a more detailed backtest post later.
LEAPS #
Also, entered a long call on XLF with about a year to expiry. This is known as "LEAPS" trade.
I played with LEAPS long ago, trying to combine it with covered calls (i.e. poor man's covered calls) but did not have much success.
Not sure if I will sell calls on it this time, or just sit on it as a long term position.