As you can see in my last post, my total YTD gain is $2,504.85. That's a 12.5% return on my original $20,000 investment. So my goal this month is to make 1 to 2 percent of $22,504.85, which is...
$225.04 - $450.08
So how am I going to hit these targets this month? Well, lets take a look at my open positions, starting with the ones that have the most potential to be profitable.
(1) FB stock and covered call - I'm holding 100 shares in @ 56.75, and I just StO a weekly May $60 call against the position. My guess is that FB will close above $60 tomorrow, netting me a $386 profit. BOOM, monthly goal met right there!
(2) GM 33/32 June credit put spread, total premium $420 - I'm currently up in this play almost $200! I put this trade on at the HEIGHT of all the recall fears. It's been working out nicely as GM has rebounded. Once I can capture anywhere from $250 to $300 of the original $420 premium I'll close the trade.
So far it's looking easy huh?!
Oh, if it were only that simple...
(3) DDD stock and covered call - I'm holding 100 shares in @ 53.97, and I just StO a May $55 call. I'm pretty sure DDD won't get to $55 by expiration, meaning I'll get to keep the measly $17 premium I made selling the call.
Now for the tricky part...
(4) SPY 188/189 May credit call spread - As we speak the SPY is ABOVE my short strike of 188. I need this play to be BELOW 188 by May expiration. Right now the SPY is trying to make new highs. I'm watching it close, but I still have conviction that the SPY will pullback between now and expiration giving me a chance to get out for a profit. However, it's very possible I could lose money on this play. So I need to account for that possibility.
(5) SPY 189/190 June credit call spread - This is my other bearish bet on the SPY. I don't have to do anything with it right away, so it shouldn't affect this month.
And now on to the big STINKER!
(6) MO 38/39 May credit call spread - Well ain't this just great! I think this is like the 17th time I have tried to pick a top on this stock and FAILED!! I LOVE it in my retirement account, but I'm hating it in my trading account. There's a pretty damn good chance I'm going to take the MAX LOSS on this play of $285. The ONLY way that won't happen is IF we get a substantial pullback in the next two weeks. It's possible, but I'm not sure how likely.
(7) TWTR June $47 put - I'm pretty red on this play, but I shouldn't have to make any moves on it until June.
Alright so let's just figure up some potential results here. Lets say I make $386 on my FB, $250 on my GM and $17 on DDD. That's a total of $623.
Now lets say I lose $150 on my May SPY play and $285 on my MO position for a total of $435.
So that gives me a potential profit of $188.
Alright, so I've got some work to do folks. I'll keep y'all posted!
Hey for all you people out there finding this blog for the time, I'm the Option Rider. I play with a wide open hand, for better or for worse! Please feel free to look through my open positions, my winners, AND my losers. Any advice, thoughts, comments or helpful tips are welcomed at firstname.lastname@example.org.
I'm just a regular guy who has had a little success as an option trader looking to get better!