August 2017 Options Trading Update

Options Trading

In the same trend as July, the August 2017 Options Trading Update is not a positive one. I had to do lots of option rolling to later dates/other strike prices (or both). Let’s have a look at this ongoing options experiment.

August 2017 Options Trading Update

The options trading income for August was -€99,25. Oops again! The loss came primarily from put options. The reason for this negative options trading report is, once again, because I had to roll various options to a later date and/or different strike price. They were all in the money and share prices had moved “too” much to let them expire. I would have bought or sold shares at prices far from what they were worth. Neither is a good idea.

Options that were particularly painful are those from AH and VPK. Both shares heavily fluctuated in the month of August, and not in the right direction I might add. On that note, the value of our AH shares is down by more than €2600.00 since June! This makes our loss in options trading a drop in a bucket. Then again, could be worse.

August 2017 Options Trading Update

August 2017 Options Trading Update

Below is an option trading overview for 2017, which provides the monthly and total YTD incomes (or “expenses”……). So far the options trading generated a total of €180.00. We are still in the black and with the potential to make more premiums, but not until (much) later this year…..

Monthly Options Trading Income

Monthly Options Trading Income

Options Trading Forecast

The forecast for the immediate future is not very good either. We will likely make a paper loss again in September, and you already know the culprit: rolling options. We now have quite a few open option (about 14) with expiration dates in October and December (and even in 2018!). Some might expire worthless, others may need to be rolled again!

To put this all into perspective, and if I would not trade going forward, the “losses” for September are likely about €160. This would mean that all profits from the pervious months would have all but disappeared. On the other side, if all open options were to expire worthless, the total premiums would be about €1.370.

Guess I’m too greedy (read: “emotionally unstable” 😉 and want all options to work out well, which is not going to happen. Its likely that I have to take various losses at some point and move on. The last few months of options trading did teach me a valuable lesson, I like Real Estate better! I also prefer stock market options that do not involve “me”. With the latter I mean making a dividend portfolio or purchasing ETF’s on a monthly basis.

 

How did you do on the options trading front in August? What do you think about my option adventure?

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8 comments

  1. Allereerst, complimenten voor jullie leerzame blog, erg veel informatie beschikbaar..geweldig!

    Wat ik me afvroeg is wat moet je doen qua belastingaangifte met de eventuele opbrengsten van optietrading?
    Moet je de opbrengsten “gewoon” optellen bij je spaargeld en dan kijken of je boven de belastingvrije drempel komt of ben je altijd de klos ? (en zoja, hoe ga je dat aanpakken?)

    1. I have been debating a different reporting style, but have decided to keep this going so that I can see what really happens in terms of gains and losses during rolling. Hoping the market will be kind to us in the coming 3 months!

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