1:10 p.m. New York time
I manage my options 21 days before expiration, a practice shown to increase the likelihood of a winning trade, according to research conducted by the financial network TastyTrade. What it means practically is that tomorrow — Friday — I shall be exiting my profitable positions built from options expiring February 21, and setting the stops for the unprofitable positions to the price that would make them profitable enough to cover trading fees.
I have eight short iron condor positions built from the Februaries that will be up for management. XBI, XLI, XLV and XLY are profitable today. Two of the unprofitable positions, EEM and XLE, are below their profit zones, and two others, TLT and and XLK, are above.
Heretofore it has been unusual for half of my positions to remain open past Management Day.
It was a somewhat volatile day for my share holdings, with three positions — WCC, SNX and AES — hitting their stop/losses, and four ceasing to qualify for their portfolios. The focus portfolio today was Robotics, and I added three positions.
- Value Portfolio
- OVV, for a $15.86 credit per share, down 93 cents from entry, resulting in a 5.5% loss over one day for a -2,011% annual rate.
- WCC, a $50.58 credit, down $3.45 from entry, a 6.4% loss over six days for a -389% annual rate.
- SNX, for a $136.34 credit, down $8.15 from entry, producing a -5.6% loss over six days for a -343% annual rate.
- Momentum Portfolio
- ELVT, a $5.61 credit, up 69 cents from entry, a 14.0% return over three days, or a 1,699% annual rate.
- SEM, a $23.38 credit, down 95 cents from entry, a 3.9% loss over one day for a -1,425% annual rate.
- Genetics and Robotics portfolios
- AAPL, for a $320.69 credit, up $6.83 from the price at entry, producing a 2.2% return over two days, or a 397% annual rate.
- Robotics Portfolio
- SNPS, for a $149.13 debit per share.
- SPLK, a $156.86 debit.
- TCEH, a $48.19 debit.
- Utilities Portfolio
- AES, which, after becoming disqualified from its portfolio, had been on the Bench awaiting an ex-dividend date, for a $19.98 credit, down 34 cents from entry, for 1.7% loss over 17 days, a -36% annual rate.
By Tim Bovee, Portland, Oregon, January 30, 2020
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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Based on a work at www.timbovee.com.