I’m not very good at getting these options trading updates out on time. Probably because I don’t have a good system yet to update my trades automatically into a spreadsheet. Doing this work manually is a pain in the @$$. But with some perseverance one can come a long way, so here is the (belated) June 2017 Options Trading Update.
June 2017 Options Trading Update
The options trading income for June was a €142.50. Interestingly enough this was all derived from writing call options. Guess the market went down a bit in June (or at least the shares I chose to write options for).
Below an option trading overview for 2017 is provided with the monthly and total YTD incomes. So far the options trading generated a total of €449.25. This totally blows my mind, never expected this type of return from options trading within the first 3 months. How long can this winning streak continue (spoiler alert, not very long)?
Based on the last 3 months I’ve learned the following:
- I’ve noticed that I use options too much for “day trading”. This can be good sometimes, but I noticed that I prefer a more passive approach to options trading;
- Need to learn to look more at a 1-3 month window;
- Also need to be more picky in the option premiums I select;
- I’ve only been trading options in about 5 stocks on the AEX, to make this options trading work for the longer term I would need to switch to a different broker and be able to trade US stocks as well (need a broader selection);
- Options trading is fun, but can be challenging to make correct judgments on strike price and premiums (see notes above); and,
- It takes more effort than I realized (rookie issue perhaps).
Options Trading Forecast
Ok, the forecast for July is not very good. Actually I’m going to be losing money this month (on paper any ways). Due to the violent swings in Ahold (downward…) I was “in-the-money” with a put option and had to roll the option to the end of the year to get back into the black. But because I report closed trades for each month, I’m going to incur some losses in July that will hopefully recover later in the year.
I’ve also had a similar issue with a call option for ABN, but this went to other way around. I don’t want to have the ABN shares for the long run (bought for the dividend and some speculation) so I want to close this position with a profit. However, I would like to do this with as much profit as possible. So I rolled the (still) in-the-money call to the end of the year and (hopefully) have the option being exercised for a higher strike price. In this way I will get the premium and a reasonable return on investment based on the purchase price of the shares and the dividend it generates for this year. If the option is exercised I should make a ROI of about 8% in about 7 months. Not bad, right? If not exercised I could still sell the shares or continue to collect premiums with writing call options, all depending on the share prices……. there are many “options” 😉
How did you do on the options trading front?