Options Trading Income Report – March 2016

247.89
Total March Income
187.46
Total 2016 Net Income

Calling the bottom

It’s really hard, if not impossible, to call when a stock has hit its bottom. However, I think I can say my trading has hit the bottom and is bouncing back.

This is one of the best months I’ve had in awhile. Not just because it turned out a positive income (sweet!), but because my rolling strategy worked. Sure, it could just be this time around things went the right way, but I have a feeling I’ve finally learned a good lesson on trade management.

Out of my two trades this month, one of them was a roll from the previous month on a CHK trade which moved against me…horribly. Here’s what that trade looked like last month:

 

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
CSP CHK Feb 16 $4 Put $.62 $2.08 -$10.09 -$156.09 -235.48% 1

That’s ugly.

But when you pair it with the trade below you’ll see I made just over $53 from the whole trade. Will it always turn out like puppies and sunshine? I doubt it. But hey, i’ll take it!

My other trade for the month in CNX is purely a volatility trade. If you’re a fan of TastyTrade (as I am) you’ll know they like to sell options when implied volatility is high so you get paid when it contracts.

If it sounds weird to you, it’s just another “mean reversion” type of strategy. If that makes even less sense, don’t worry I’ll write it up soon so you can see how this strategy works.

I admit i’m both a little excited and nervous about how well it’s working for me. Just to give you a sneak peek of April’s Income Report…I’ve made seven trades using this strategy in April and have already closed three of them as winners.

We’ll see how it works out next month!

I hope your trading is going well and I’d love to hear from y’all. Feel free to 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
March Net Option Trading Income: $243.80

March Dividend Income: $4.09

Total March Income:  $247.89

Total 2016 Net Income:  $187.46

 

Current Dividend Stock/ETFs Holdings

Stock/ETF # Shares Quarterly/Monthly Dividend Per Share Annual Dividend Per Share Cost Basis Yield
HCP 10 $.575 $2.30 $27.28 8.43%
JNK 10 $.189 (monthly avg) $2.27 $33.95 6.68%
STR 10 $.22 $.88 $25.33 3.47%
TRN 100 $.11 $.44 $48.10 .91%

 

March Dividend Payments

Stock/ETF Total Dividend Paid
JNK $1.89
STR $2.20

 

March’s Option Trades

Strategy Stock/ETF Option Entry Price Exit Price Commission Net Profit % Gain/Loss # Lots
CSP-R1 CHK Mar 16 $4 Put $2.25 $.1 -$5.10 $209.90 95.56% 1
CSP CNX Mar 16 $8 Put $.81 $.37 -$10.10 $33.90 54.32% 1

CC = Covered Call

CSP = Cash Secured Put

-Rx = Roll #X from previous trade

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