So far I'm having a good 2015 and great February! I've booked $620 of gains this month and $992 for the year - that's nearly a 10% return already for 2015!
However, I've learned that doesn't mean a whole lot. All it takes is a ONE bad risk management decision to BLOW-UP a full year of gains.
Been there and done that!
That's why this year my TOP priority is risk management and position sizing - PERIOD! That's it! I'm trying not to worry about making a bunch of money. I simply want to focus on managing my risk. I know if I do that well, the money will follow.
Alright lets move on to my open positions... starting with my option trades. (You can check out all my open positions HERE!)
ESV - Boy this stock right here has singled-handedly DESTROYED my account! Well not the stock, but my stupid decision to try and play a bounce. It started last August when I put on an October put spread. I just knew a bounce was coming, so I put on a bigger position than normal. Well we know what's happened with oil... I got crushed! But instead of cutting and running - I DOUBLED down on a December put spread - another STUPID decision! Again, I got crushed... and that leads me to this March 37/36 put spread. I'm playing 10 contracts - and baring a miracle, I'm gonna get SMOKED again. Luckily, this is the last cancer position I'm carrying from 2014.
KO - I've got two plays in this name... a 44/43 May put spread, and a 42/41 April put spread. The May play is 10 contracts - which is too many, but I set this play up last November before I cared about position-sizing. The April play is only 2 contracts, which is the proper position size and risk for my account.
T - This is my last outsized position. I'm playing 10 contracts on a 34/33 June put spread. I set this trade up in December when the stock was trading around $32.50. I love when stocks like this get WAY oversold. It's the perfect time to set up a longer-dated ITM put spread. This allows me to collect a BIG premium, which I did. I got .52 per contracts, so on 10 contracts minus commissions - I got a $500 credit
PM - I'm holding 2 contracts on a June 82.50/80 put spread. Same thought here as the T play. I set this up January 2nd when PM was trading just above $80.
TWTR and FB - Now to my weekly put selling strategy. I like to find, trending momentum stocks and sell naked puts with the goal of these puts expiring worthless. The thing I like about stocks like TWTR and FB is they pay good premiums because of the volatility. TWTR just had a good ER and the momentum is back. FB has had a TON of bullish call option activity so it looks like this stock is heading back to all-time highs. Both puts were sold slightly OTM of the money, so the probability of them expiring worthless is a bit higher. BUT I still get to collect a decent premium. If the stock were to move against me, then on expiration day I'd simply roll out the position. This is a bit of a risk, but one I am comfortable with.
Moving to my stocks...
AGEN - I've already booked an 11% gain on the first half of this position. Now I'm holding the rest with a stop just under Friday's low at $5.13. My "take profit target" is around $5.50-$5.75
TWTR - I'm holding 50 shares in at $47.35 which I'm looking to unload around $52.
RHT - I got in this trade at $66.94. On Friday, I sold half at $70.05. I'm trailing a stop on the other half just under Friday's low, $69.10. No target here... just letting it ride.
HOT - I opened this position Friday. I'm in at $79.01 and I've got a stop at $78.50, Friday's low. My target is $82.
AAL & KN - Both positions were opened on Friday, and I've stops in - guess where? Just under Friday's low. I like AAL back to $55-$56 range and KN to $21-$21.50 area.
FNSR - I'm in at $20.87 with a stop at $20.45. My target here is a gap fill to $25.