May'07 Monthly Income trades

[optionpundit]

Dear All,

Here is the original post on May'07 trades :
http://www.optionpundit.net/past-performance/trade-details-for-may-2007

Here is the first weekly update (At the end of April 21):
http://www.optionpundit.net/past-performance/weekly-update-on-may07-income-trades

Here is the 2nd weekly update (At the end of April 27)
http://www.optionpundit.net/past-performance/weekly-update-on-may07-income-trades-428-overall-up-10

Profitable trading,
OptionPundit

[optionpundit]

OIH has been quite volatile during the past 3 days. As it started to slide towards 154, I opened another calendar 150 May/Jul Put calendar for 3.35 debit.

[optionpundit]

Another adjustment as of today, I rolled OIH May 150 to June 150 for $1.65 credit.

[optionpundit]

As I wanted to free up my margin for some better trades I closed my DOW call diagonal as well. Overall return on this DOW double diagonal is $22/485 i.e. 4.5%.

[optionpundit]

OIH Adjustments -
-Bot 165 call calendar for $4.90 (May/Jul)

- Sold Jun/Jul 150 Put for $1.40
- Sold Oct/Jun 150 put for $3.90

Net effect on portfolio - credit $.40/ spread

To note : The OIH has been very volatile. When portfolio was started it was at 154, since then it traded between 154 and 164.

[optionpundit]

Though, I have already achieved my May's portfolio return objectives (my monthly target is 5%-7% returns) there is enough room in these income trades and therefore I can still continue to hold. I don't expect returns like March (> 30%) but there is still space to make it bigger than 14%.

June'07 income trades have already been opened and shared with OP Newsletter subscribers last week. You may join it for less than US$1/day i.e. US$28/month via paypal from the left sidebar of the www.OptionPundit.net

Here is an update on the income trades that I had opened for May expiration cycle. The returns are as of May 4 closing day.

• Trade-1 RUT Iron Condor (750/760/860/870), Current profit = $110/$795, +13.83% (I closed the Put credit spread by buying it back for $0.20).
  Trade-2 Dow Double Diagonal (closed put diagonal, left with call diagonal 50/55), Current profit =$22/$485, +4.5% (closed the call diagonal for zero cost)
  Trade-3 SPY Iron Condor (1:1 risk reward), closed with loss =$43/$108, -39.8%
  Trade-3 OIH Variable calendars/diagonals Current profit =$335/$1625, +20.6%

OIH since last week, adjustments made are (all these adjustments can be found here):

Bot May/Jul 150 put calendar for 3.35 debit
Rolled May/Jun 150 put for 1.65 credit
Bot May/Jul 165 call for 4.90 debit
Sold Jun/Jul 150 put for 1.40 credit
Sold Jun/Oct 150 put for 3.90 credit[/li][/list]

Total investment change = 3.35-1.65+4.90-1.40-3.90=+1.30 vs last week, Total investment = 14.95+1.30=16.25 per spread
Overall gains/loss : $110+$22-$43+$335=$424

Total Investment/Margin = $795+$485+$108+$1625=$3013/ Portfolio spread

ROM : $424/$3013 per spread i.e. 14% on overall portfolio

The above results are excluding speculative intradays trades like ESRX, WFR, etc. Even though gains are substantial, I don't include those as that is not my key strategy and involves a very small part of my overall portfolio. Majority of my money is invested in income trades and almost in the same ratio as mentioned above.

Profitable trading, OptionPundit

[returner]

Hi OP,

As a paid subscriber to OP Newsletter.  When we will be receiving the monthly income trades? As and when u found the trades and before u enter or after you enter the trades?


thanks & rgds
returner

[optionpundit]

Almost instantly as I am about to enter the trade. Sometimes my trade maynot even be filled but I shall send to my subscribers. I am open to suggestions as well, as my objective is to make money together with subscribers not from subscribers and in return I expect they will appreciate accordingly.

Profitable trading, OptionPundit

[optionpundit]

RUT closed for 20.7% profit.

I bot my remaining bear call leg (860/870) for $0.20 per spread that delivered 20.7% profit. Screenshot can be found here. So far I have a 100% record of Iron condors on RUTs, something that makes me worried so as to not become complacent. This was a mor trade for me as I had 15% of my portfolio invested in this trade.

http://www.optionpundit.net/iron-condor/rut-may-income-trade-closed-profit-20

Profitable trading,
OptionPundit

[optionpundit]

OIH adjustment:
Rolled May 165 call to June 165 for $2.53 credit per spread.

Profitable trading, OptionPundit

[optionpundit]

OIH Trade adjustment
Rolled May 155 to June 155 for $2.30 credit.

[optionpundit]

Weekly Update on May'07 Income Trades - Portfolio up 20%
Though, I have already over achieved my May's portfolio return objectives (my monthly target is 5%-7% returns) there is only one trade left i.e. OIH and I am expecting my May 160 put to decay rapidly next week and generate more returns. This was another successful month of winning on RUT (over 90% success rate now).

June'07 income trades have already been opened and shared with OP Newsletter subscribers last week. All the three trades are positive (Profit ranging from 1% to 6%). You may join OP Newsletter for less than US$1/day i.e. US$28/month via paypal from the left sidebar on www.OptionPundit.net.

Here is the 4th weekly update on my income portfolio that I shared earlier.

Here is an update on the income trades that I had opened for May expiration cycle. The returns are as of May 11 closing day.

Trade-1 RUT Iron Condor (750/760/860/870), Closed for profit = $165/$795, +20.75%. (I closed the Put credit spread/Call credit spread each for $0.20).
Trade-2 Dow Double Diagonal (closed put diagonal, left with call diagonal 50/55), Current profit =$22/$485, +4.5% (closed the call diagonal for zero cost). Closed.
Trade-3 SPY Iron Condor (1:1 risk reward), closed with loss =$43/$108, -39.8%. Closed.
Trade-3 OIH Variable calendars/diagonals Current profit =$363/$1142, +31.79%. Still open.
OIH since last week, adjustments made are (all these adjustments can be found here):
Rolled May/Jun 165 call for for $2.53 credit
Rolled May/Jun 155 put for $2.30 credit
Total investment change =-$2.53-$2.30= Credit $4.83 vs. last week, Total investment = 16.25-4.83=$11.42 per spread
Overall gains/loss : $165+$22-$43+$363=$507

Total Investment/Margin = $795+$485+$108+$1142=$2530/ Portfolio spread

ROM : $507/$2530 per spread i.e. 20% on overall portfolio

The above results are excluding commisions (my commisions are very low and doesn't affect results substaintially) and speculative intradays trades like ADP, AAPL, SID, POT, ESRX, WFR, YHOO, etc. Even though gains are substantial, I don't include those as that is not my key strategy and involves a very small part of my overall portfolio. Majority of my money is invested in income trades and almost in the same ratio as mentioned above.

Profitable trading, OptionPundit

[optionpundit]

This is the final leg in the closing May OIH portfolio. I rolled 160 May puts to June for $2.70 credit per spread. That brings down my cost from $11.42 to $8.72, there are 3 more days for the May expiration. I expect it to settle somewhere either 160 or 165. I shall update overall portfolio returns on Monday.

[optionpundit]

May income portfolio is closed for +22%.
Check out detail posting here-->http://www.optionpundit.net/past-performance/may-income-portfolio-closed-profit-22