Saturday, August 1, 2015

Option Trading: 1 year anniversary

August marks my 1 year anniversary of Option Trading!  August 11th was my first trade in this journey... same day when I bought my first car!  Summer months have always been lucky for me.  I'm a summer baby.  Things just fall into place for me in these few months of the year.  

I'm not much of a trader, more of a buy and hold and wait for my dividends investor.  I don't really use any technical or fundamental analysis.  I trade what I like.  Let's just say I have good tastes most of the time.  

Before I learned options, I wanted to earn $500/mo from swing trading using my margin account to fund the trades.  But I seem to find the wrong kind of stocks to play with and got stuck with just paying interest on the money I borrowed from my brokerage instead.  I tend to hold onto losers and sell my winners.  

Now with Options, I can trade with little to no actual money down and make consistent gains!  All I need is buying power and I can keep my current stocks as is.  As my portfolio grows, my buying power will also increase giving me opportunities to do more trades to create a steady stream of premiums. 

June was a disappointment, but I still pulled through.  July proved to be my biggest gainer to date!  

I'm up 11.23%!  From my options, I realized a net gain of $2,059.87.  I closed a lot of my positions early.  My commissions for the month was $59.98 USD.

Of course, this does not make up for the actual gains I had for the month.  I hold 25 shares respectively for $GOOG & $GOOGL.  They spiked up in price and brought my overall portfolio with them to over $100k.  Unfortunately, I sold off 15 shares of $GOOG @ $580 with a GTC order that I had set previously from months ahead.  To be truthful, I was getting fed up with Google for not moving for the past couple of years, while other stocks have made leaps and bounds.

I used my proceeds from my $GOOG sale to buy 10 shares of $UHAL @ $347.08.  Buying growth stocks have its perks with bigger appreciation in stock price, but it also has a down side if it doesn't move or falls below your buy in price.  Another con is most of them doesn't pay a dividend.  


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