Options Trading Income Report – April 2017

April 2017 Income Report

148.77
Total April Income
72.40
Total 2017 Net Income

Blood in the streets…

This was just an ugly month.

There’s no better way to describe it than just a vicious bloodletting with my account as the sole victim. Holy shit…I’ve had rough months before, but it’s been awhile where damn near every trade in the month went against me.

Oh well, you’ve got to take the good with the bad, learn from it and adjust and that’s what i’m doing for May.  

Option Trades

I closed 13 trades in April, which I think sets a personal record for number of trades in a month. I know it’s probably a drop in the bucket to some traders, but it was busy for me keeping up with everything!

Roughly 85% of my trades this month were credit spreads of some sort with trades entering around the 15-20 Delta mark on the underlying. Typically this would allow you to estimate that 15-20% of your trades wouldn’t work out and the reality was close. Only 36% of my trades went rogue on me.

Unfortunately, those few trades overshadowed my successes. In one instance, I got too busy with life and trading to notice one of my trades (AKS) expired ITM on both options in the spread and I ended up eating the assignment fees as well as the loss on the transaction of the stock into and out of my account…wonderful.

One of the things I’ll have to do is adjust my watch list. I’m used to trading stocks $10 with the “Wheel of Fortune” strategy, however this just doesn’t work with credit spreads. There’s just not enough reward for the risk you take.

I think this will be an easy fix. I recently purchased access to the Option Alpha Watch List and plan on using it more consistently to execute my credit spreads. I’ll write up a review on the watch list itself and also let you know how well those trades work for me. I’ve already put it to use, but haven’t done the analysis on the trades to figure out how well (or not) it worked for me.

Dividend Income

Dividends were boring (as they should be) and just kept chugging along this month. Despite the dwindling JNK dividend, I’m going to hold onto this ETF for a bit longer. It’s hovering near historic lows for the dividend, but we’ll see how it goes over the next few months.

Lending Club Income

Lending Club is chugging away and ever so slowly, but steadily, increasing its monthly returns. I got to reinvest $25 of returned capital and interest into another loan to bring my portfolio up to 22 loans. My currently adjusted net annualized return is 8.59%, which I don’t think is too shabby of a return rate.

That’s it for this crazy month. I think May will be a little more calm, but who knows what Mr. Market has in store for me! I’d love to hear from y’all, so drop me an email at nakedoptiontrader@gmail.com, leave a comment on the site or catch me on Twitter @optionstudent.

Until next month!

Happy Trading,

Patrick
Account
Dividend Income: $1.78

Lending Club Income: $3.73

Option Trading Income: -$154.28

Total Income:  -$148.77

2017 Net Income:  -$72.40

 

Current Stock/ETFs Holdings

Symbol # Shares Quarterly/Monthly Dividend Per Share Annual Dividend Per Share Cost Basis Yield Pay Month
ADM 10.207 $.32 $1.28 $37.10 3.45% C
JNK 10.402 $.178 $2.20 $33.95 6.68% M
VLO 10.283 $.70 $2.80 $52.47 5.33% C
FLO 10 $.16 $.64 $15.11 4.23% C
QCP 2 $0 $0 $16.25 0 N/A
ABR 40.858 $.16 $.64 $7.39 8.66% C

A = (Jan/Apr/Jul/Oct)  B = (Feb/May/Aug/Nov)  C = (Mar/Jun/Sep/Dec)  M = Monthly

 

Dividend Payments

Stock/ETF Total Dividend Paid
JNK $1.78

Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit # Lots
CSP RIG Apr 17 $13/$12 Puts $.21 $.91 -$6.14 -$76.14 1
CSP CLF Apr 17 $10/$9 Puts $.30 $.97 -$6.14 -$73.14 1
CSP RIG Apr 17 $14/$15 Calls $.21 $.03 -$6.14 $11.86 1
P GRPN Apr 17 $4 Put $.19 $.17 -$3.07 -$1.07 1
CSP SWN Apr 17 $8/$9 Calls $.22 $.08 -$6.14 $7.86 1
CSP NKE Apr 17 $57/$58 Calls $.15 $.03 -$6.14 $5.86 1
CSP NKE Apr 17 $53/$52 Puts $.09 $.02 -$6.14 $.86 1
CSP AKS Apr 17 $8/$7 Puts $.33 $.00 -$133.09 -$100.09 1
P AKS May 17 $7 Put $.60 $.27 -$3.07 $29.93 1
CSP UVXY Apr 17 $14/$13 Puts $.18 $.03 -$6.14 $8.86 1
CSP UVXY Apr 17 $19/$20 Calls $.14 $.42 -$6.14 -$34.14 1
CSP UVXY 28 Apr 17 $15/$14 Puts $.12 $.66 -$6.14 $60.14 1
CSP UVXY 28 Apr 17 $17/$18 Calls $.08 $.00 -$3.07 $4.93 1

CC = Covered Call  P = Sold Put  CSP = Credit Spread  DSP = Debit Spread -Rx = Roll #X from previous trade