Set to Expire: June 26, 2015

This is my only action for the week.  It's a nail bitter!  

Option	Position
FEYE 26JUN2015 50 P	-1

Days to expiration (DTE) is 3 days away when I sold this PUT above yesterday as indicated in my Twitter feed.  A quick $10 play here or could this be a $5,000 mistake?

My 2nd day away from DTE... $FEYE dropped 2.33%!!  Sad face.  Come Friday, I need $FEYE to stay strong and above $50/share to let my PUT option expire worthless so I can keep my premium I collected.  

Set to Expire: June 19, 2015

Option	Position	# Days Held
MA 19JUN2015 91 P	-1	7
V 19JUN2015 70 C	1	84
WMT 19JUN2015 70 P	5	86
WMT 19JUN2015 75 P	-5	86
WYN 19JUN2015 82.5 P	-1	37
FTS.TO 19Jun2015 CC	-1	39
PTE.TO 19Jun2015 P	-1	35
DOL.TO 19Jun2015 P	-1	19

Greens will expire worthless.

Reds are in trouble.

Strike through, position has been closed.  

Figure it all out folks.

I closed a shitload of my positions early this month (8 to be precise) to realize a gain of $874.04.  But come Friday, I might have to close $WMT for a big loss.  Maybe, I'll be break even.  Hoping for a strong two day showing!  

I'm too lazy to get to the bitty gritty details.  My commission costs are through the roof $4.50 CAD & $59.63 USD.  HOLLA!

Upcoming Negative Results for June 19, 2015

The biggest headache I have now is dealing with a trade that has gone wrong.

$WMT is giving me a run for my money.  I opened my bull put spread 5 contracts for $75/$70 end of March 2015 when $WMT was trading at $81.32 per share.  I collected $202.08 in premiums after commission.  

In the past three months, $WMT dropped a good 12% after reporting their earnings.  Today, $WMT closed at $71.94.  This is $3.06 under my $75 short strike price.

In order for me to keep my $202.08 premiums, I need $WMT to move and stay above $75 per share.

If $WMT does not move up, I will have to close my position for a loss.  Take for example, by Friday, $WMT closes at $72/share.  My total loss would be around $3 x 5 contracts x 100 per contract = $1500. 

$1500 loss in this trade would be devastating to me.  But my exit plan is to roll this bull put spread out to a later date in hopes that $WMT will recover and bounce back to its original glory.

My worst case scenerio is I get assigned 500 shares @ $75.  So I rather close my position earlier than later.  

Couple of other smaller headaches in scale are my call for $V for $70 and my put for $PEY.TO for $34.  Both are expiring this Friday.  I am really counting on a nice bull frenzy streak that we've been getting for the past few months.

To manage my positions better, I need to take profits earlier than later.  I need to take them @ 50% capture instead of waiting for the "possible" 100% capture at the end of expiration.  I've let $WMT become a problem.  

May Option/Stock Performance

May has come and gone for the stock market.  The saying goes, "Sell in May and go away!"  And sure did I sell some PUTs!

This month IB portfolio did better than I expected.  It gained 3.46%.  Could this be the top of the market?  On the last trading day of May, the markets turned red, very red.  I lost a couple percentage point that day alone.  But overall, I am very happy with the performance of my portfolio from option trading.  The stats speak for itself.  

In May, I ended up realizing $1,014.56 in net option premiums, but I spent $53.35 in commissions.  I let 14 expire worthless, I closed 1 position early, and I rolled 1 position to the next month. 

Till the next month.  Let's see if I can keep this up.

Set to Expire: May 29, 2015

Last week, I didn't have any expiries to report!  Sad week it was.  But I did close my $MA position early to capture 86% gain to free up some buying power within my account.

Transaction Date

Expiry Date

# of Days to Expiry

CALL/PUT

SYMBOL

STRIKE $

Contracts

Contract Premiums

Comm. Fee

Premiums Collected

Closing Date

# of Days Held

Realized Profit

% Capture

6-Mar-2015

17-Jul-2015

133

SELL PUT

MA

$75

2

$0.76

1.15

$150.85

22-May-2015

77

$129.87

86.09%

Lately, I've been selling too many low, but safe premium PUTs too far out and tying up margin funds.  I need to do more spreads to generate the income that I'm seeking.  Ultimately, this will increase my risk and commission costs, but the income generated will be worth it.  I'll just have to be more deligent in babysitting my trades.  

Sometimes, I am scared of trading too much and getting caught up in it.  I will need to evaluate my risk tolerance when making an option trade out months ahead of time.

This coming Friday,  I have a few options expiring:  

Option	Position	# Days Held
AAPL 29MAY2015 115 P	5	18
AAPL 29MAY2015 120 P	-5	18
SBUX 29MAY2015 50.5 P	-1	3

I will let my $AAPL bull put spread expire worthless.  This does not take up too much room in my buying power, so I will save around $8 in commission if I were to close my position early.  This trade, I will realize a gain of $177.08.

As for $SBUX, I sold to open my position yesterday when the market selling off.  I took a risk to make $20 in basically 3 days.  Right now, it can go either way.  I'll either end up making $20 if $SBUX stays above $50.50 or I'll end up owning $SBUX for 100 shares @ $50.50.  

My hunch is $SBUX will end in my favour and I walk away with $20 in my pocket.  

You can always find my same day trades on Twitter @PC_Trades.  I keep things simple and I intend to trade and keep on building my portfolio.  

I can not believe I've come this far in this short amount of time since I started option trading.  I am very thankful for the Twitter community that have open my eyes to this untapped market that is unbeknownst to most investors.  

Gambler in Me

Some ladies like to spend their thousands on a designer bag, but I like to buy investments that will give me returns that I seek forth.

Calculated risks are always gamble.  Weighing in my options, I decided to buy a LEAP out to Jan/2017 call on $AAPL with a strike price of $110. 

PC‏@PC_Trades

BOUGHT 1 AAPL Jan20'17 $110 CALL @ 29.54 - call me crazy lol

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12:55 PM - 21 May 2015

The reason behind my trade is I'm bullish on $APPL and I think in the next while it might head upwards.  Therefore, I can bank on the gains.

Currently, Apple Inc ($AAPL) is trading around $130/share.  I could buy 100 shares @ $130 for a $13,000 investment in today's market.  But I don't have $13K USD laying around unless my GTC order for $GOOGL hit $600 soon.  Instead of owning the stock for $13k, I put down $3K to play on the price movements.  

Yesterday, $AAPL went up by $1.15/share and my option also went up by like $0.80/share.  If I were to sell my option at any point yesterday, I could have made $80 on $3,000 vs owning the stock for $115 on $13,000.

The downside to this CALL option is if $AAPL share prices continues to fall from this range, I would lose money depending on when I want to cut my losses in the 606 days left to my expiry date.  Let's say by Jan 2017, $AAPL is trading below $110, my CALL option would become worthless and I would take a $3k realized loss vs owning the stock with a paper loss of $2k.  

Time will only tell whether I made the right call or not.

Goal Completed, What's Next?

Liquid from Freedom35Blog reminded me on Twitter recently that my goal for 2015 is to "Create more income through option trading:  $5000!"

Well, I'm done with my goal for 2015!  This past Friday's expiration pushed me over $5,000 mark!  You can check it out in my Progress tab up above.  Does this mean I can relax and enjoy the rest of the year?  Hells no, I will reset my goal to $10,000!  

Now, I better not lose all my $5,000 in option premiums that I worked so hard for the past few months of the year!  I can never be too cocky, right?!  The market is ever changing and I can not predict the future.  So I tread carefully and make small little wins whenever I can.

In life, we all strive to make money to sustain a certain lifestyle we want.  Everyone is different in their own ways and find their passion as time goes on.  Each passion can lead to opportunities.   What is your passion?

My passion is to grow money out of money!  Unfortunately, money does not grow on trees.  I have been working straight for a dozen years saving up as much as I can after all the expenses that goes out each month.  Even though, I get tired of the mundane routine, I do look forward to going to work and seeing that steady pay check at the end of the month.  But there is an inkling in me to break free of the constraint in the working for the bigger boss life.  

I see people of all walks of life.  The rich wants to work, while the middle class are counting down the days and the poor doing whatever to get by.  One has to change to make a leap from one class to another.  When it comes down to it, it's all about your desire in life!  What makes you go round? 

Most people under estimate me.  Often, I go unnoticed.  I shy away from the attention.  Yet, sometimes I want to be recognized.  It's a double edge sword.  I am a thinker, not a talker.  This is my only outlet to speak my mind freely without any hesitation.