It wasn’t a good month for options trading. 😅 I’m basically flat for the entire month.
I was doing okay for the most part. But then I shorted a put spread on Meta stock before earnings and unfortunately they disappointed investors so much the stock fell 24% the next day which really hurt my P&L. 🙁
The lesson here is to keep my strike prices further out of the money and lower my position sizing so one trade doesn’t jeopardize my entire month’s worth of premiums.
Another key lesson I’ve learned is to keep my stop losses tighter. My overall win rate is fairly high thanks to choosing low Delta trades. But if one bad trade can wipe out 5 good ones then the overall strategy isn’t very sustainable. That’s why I need to get out earlier if I think there’s potential for an even bigger loss if I don’t close my position.
As I mentioned last month I wanted to focus on 0 days to expiration trades in October. This has worked out well so far. I am planning to continue trading, maybe not every day, but at least try to take advantage of chart patterns that I recognize when I see them. 🙂
Pretty much all my options expire weekly now so I don’t have a lot of carry over. Going forward in November my goal is to get back to over $4,000 in net premiums.
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Random Useless Fact:
Yawns are a way to cool down the brain.
So with 0 days to expiration you are looking to just target options contracts on Fridays? Is that how I should understand this?
Some ETFs such as SPY and QQQ have options expiring on Mondays, Wednesdays, and Fridays. I sometimes trade those on the day that they expire. 🙂
There’s also SPX options that expire from Mondays to Fridays, except holidays of course.
SPX tracks the S&P 500 index.
Today, Thursday I tried to make some money selling put spreads on SPX. But stocks dropped unexpectedly right before market closed so I had to close my position and take a small loss. In most cases, my 0 days trades are successful though because we don’t see huge swings that often at the end of the trading period.
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