Time again for my latest portfolio results, this time for the August expiration month. As always, I will break down the sources of my results so that you can keep track of how each strategy is doing. Beyond the actual numbers, this report is meant to give you an over-the-shoulder look into my trading and the lessons I’ve learned.
For several reasons:
1. To keep me headed in the right direction. Sure, I could keep this all to myself but sharing this information publicly helps to hold me accountable and continue to try and outdo myself.
2. I want to be honest and transparent. If anyone talks about making money trading options, I think that’s really the only way it should be. Wins, losses, successes and failures – the whole deal.
3. I know it inspires a lot of people to take action.
You can access previous portfolio results via the links below:
It was basically a flat month for me, I was pretty conservative with my trading due to the low volatility environment. Iron condors and credit spreads were positive again and the results include two positions that are open for September and October expiry. At the time of August expiry, these were showing losses of -$187 and -$859. These positions have since come back my way and should be profitable by the September expiry. The October iron condor is a new strategy I’m testing out. I don’t want to give away too many details just yet, but I will aim to write a blog post sharing the strategy and the results shortly.
Important Events in August
After 2 successful months, I was expecting that my performance might come back a bit. Sometimes I find after a period of strong gains (I was up $3,562 in June and $4,190 in July), I get overconfident and then give some of those gains back the following month. So a relatively flat month was not such a bad result really.
For the month I was +$322.85 for a return of +0.19%. During the same period, the S&P 500 moved from 1376.51 to 1418.16 for a return of +3.03%. I have been somewhat bearish over the last few months, so not surprising that I underperformed as the market rallied strongly. For the year I am +8.78% versus +12.76% for the S&P 500. I’m on track for my goal of 1-2% per month but would like to see my returns get to at least +15% by year end.
Two double calendar trades had a negative impact on my performance this month, one on GLD (-$475) and one on GOOG (-$301). Both of these trades were based on volatility which was very low at the time. Unfortunately I was about 2 weeks early on the entry for GLD as the big move didn’t occur until after August expiry when I had already closed my position for a loss. Here are the trade details:
July 26 – Buy GLD Sept $164 Call, Sell GLD Aug $164 Call and Buy GLD Sept $148 Put, Sell GLD Aug $148 Put. Trade closed on August 6th
I briefly tried a new strategy using weekly butterfly trades after watching an amazing webinar by Jeff Augen. I ended with a small loss of -$94 which was fine as I was happy to write that off as a learning experience. While I do see some merit in the theory, I definitely think this strategy needs more investigating before allocating serious capital to it.
I appreciate you taking the time to stop by and read my articles and results. If you have any questions, please email me at firstname.lastname@example.org.
Here’s to your ultimate success!