Live: Friday, May 31, 2019

3:30 p.m. New York time

After today’s exits I have three positions remaining with June expirations: AAPL, XBI and XLB. I also have one July position, IWM.

I’ll play the three remaining June positions according to my revised exit rules: With fewer than 21 days before expiration, I enter the sudden-death phase, exiting if a position that becomes profitable to any degree, and if it moves out of the profit zone by any degree. I’ll exit all remaining positions on the Monday prior to expiration, or with five days to go.

See my Trading Rules on the menu bar a the top of the page. I’ve updated them with a more precise script for exits.

And on Monday I shall start looking for new July positions to make use of the cash free up by today’s exits. At 49 days prior to expiration, the July monthlys are in prime time for my sort of trading.

1:50 p.m. New York time

I’ve posted full results for my XOP exit.

1:30 p.m. New York time

I’ve posted full results for the UNH position I exited.

9:55 a.m. New York time

Today is 21 days before the June monthly options expire; they account for five of my six short iron condor positions.

By my trading rules, this is the day that I manage positions. I close profitable positions, while retaining those inside the profit zone yet unprofitable, and those outside the profit zone, except those that would take two days or more to return to the profit zone, using the 14-day Rate of Change metric to make a determination.

I’ll hold on to losing positions that would take less than two days to return to profitability.

So, by those rules, I have exited UNH at 9.2% of maximum potential profit. It’s a winner, but a small one. I have also exited XOP, which declined today, putting it 2.2 days away from the profit zone. That leaves AAPL, XBI and XLB which are within the profit zone but not profitable.

In any case, I shall exit all remaining positions by the Monday prior to expiration. For the June monthlys, that would be June 17.

Later in the session I’ll have full results for the positions I have exited so far today.

By Tim Bovee, Portland, Oregon, May 31, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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