Options Trading Income Report – January 2015

-146.86
Monthly Income Generated
-3.99
Annual Return

What a rough start to the new year. I did lots of rolling of trades to stay ahead of the underlying stocks.

My flailing about during January only solidified my resolve to follow the trading plan I’ve finally developed. As I wrote about in my trading strategy for 2015, I plan to create small, consistent wins through trading naked puts, covered calls and collars on CLF, TRN and GE which create a 1% monthly return and capture 60% or more of the available premium.

I began trading in January much like I ended 2014. Not much of a plan and selling premium whenever I could. No attention was paid to how the underlying was moving or any of the technical indicators which are available.

That’s all going to change.

Until then, here are my sad results for January. Hopefully the last down month this year!

Account

January Net Income:  -$146.86

Total 2015 Net Income:  -$146.86

 

Trades

Strategy Underlying Option Entry Price Exit Price Commission $ Gain/Loss % Gain/Loss # Contracts
Long Put TRN Jan 16 25 Put $3.90 $3.40 $10.07 -$60.07 -12.82% 1
Naked Put GE Feb 15 23 Put $.35 $.08 $10.08 $16.92 77.14% 1
CC TRN Jan 15 28 Call $.35 $.35 $10.08 -$10.08 0% 1
CC TRN Feb 15 30 Call $.80 $.27 $10.08 $42.92 66.25% 1
CC CLF Feb 15 9 Call $.35 $.82 $10.16 -$104.16 -134.29% 2
CC TRN Feb 15 27.5 Call $.65 $.90 $10.08 -$35.08 -38.46% 1
CC TRN Mar 15 28 Call $1.15 $2.0 $10.08 -$95.08 -73.91% 1
CC CLF Mar 15 9 Call $1.05 $.37 $10.16 $125.84 64.76% 2
Naked Put GE Feb 15 24 Put $.25 $.43 $10.07 -$28.07 -72% 1

Join the discussion 2 Comments

  • Bill Hamer says:

    Ok, I am confused. I see and entry price and exit price. The entry price is what someone pays for your CC? What is the exit price, are you buying and exit to offset what someone paid for you option?

    • Patrick says:

      Bill,

      Thanks for the question!

      The entry price is what I sold the covered call or naked put for. So, for example the Feb 15 30 call against my TRN stock was sold for $.80.

      Someone else out in the vast options marketplace bought that same call at or near this price. Once the value of that call decreased toward my target profit (~60%) I bought the call back to remove the risk of TRN skyrocketing and having my shares called away.

      The exit price is what I bought that same call back for on the market Returning back to the Feb 15 30 call, I bought it back for $.27. This transaction, minus commissions, is what netted me $42.92.

      Make sense?