Options Trading has been my main focus for close to a decade now. Each and every July 31 for the past 11 years, I close out my trading account, transfer the funds to a managed assets account for my children, and start August 1 with a $1,000 account. Why? Because each year is a mission to both be forced to succeed in trading and to make every effort to complete the 32Trades Plan within a year as a personal goal.
It’s quite difficult going from a 6 figure account to $,1000, but the same rules apply when it comes to building it up for that cushion so that you can begin to trade less, look further out, and begin to capitalize on the bigger picture. SPY has and always will be my bread & butter trade, but now I can diversify a bit and start looking for those 2 month out 500% – 1,000% trades.
Heading into the election, I kept building short positions in anticipation of a repeat of previous election “sell the news” dips. We were doing amazing as we headed into it with SPY dipping down into the 208s, fuelled by Trump’s point climbing and Clinton’s possible FBI indictment.
I was up big and ITM (In The Money) on my largest hedge, NOV 18 SPY 212 PUTS – so big that I only took off 25 of the 100 contracts and grabbed some 207 PUTS on the Friday before. When that overnight Trump Win dip came…. BREXIT 2.0 was on everyone’s minds (except those who bought the overnight dip).
Convinced the over exuberance that next morning was a false flag, I failed to put in stop losses or take my beating and had to fight tooth & nail in this new Bull Market to end the month green.
Profits from Aug 1 – Nov 30: $81,574.43
Cash Balance: $36,234.67
- DEC 2 SPY 217 PUTS (40)
- DEC 2 SPY 218 PUTS (40)
- DEC 2 SPY 219 PUTS (300)
- DEC 2 NFLX 116 PUTS (6)
- DEC 2 XOP 40 PUTS (32)
- DEC 2 VXX 27 PUTS (100)
- DEC 7 SPY 218 PUTS (20)
- DEC 7 SPY 219 PUTS (20)
- DEC 9 SPY 220 PUTS (10)
- DEC 16 PFE 30 PUTS (30)
- JAN 20 BUD 120 CALLS (10)