17 March, 2023 seen 456Covered calls probably are my favorite options trading strategy as it involves the least risk (at least in theory) A…
Welcome to the thirteen (#13) options trading income report - covering earnings I've made from trading options (puts, calls, vertical spreads) in the month of March 2020.
It has been already more than one year since I have been trading options, despite I have learned a lot, I still feel like I'm a rookie.
Wow, what a month was last March. It turned out to be the most disastrous in my short investor's career.
And options were no exception. With tanking markets, because of the COVID 19 and OIL wars, I faced a couple of margins calls and was forced to close with loss some of my positions.
This could be avoided if I had more cash or I would have fewer positions opened. Or as I have learned the hard way - a ratio back spreads (or at least spreads) would have helped me to avoid the small catastrophe my portfolio experienced last March.
In March 2020 I opened just 4 new put positions and 58 new vertical spreads.
58 might sound like a lot, but most (if not all) were ratio back spreads, meaning the total positions actually is half or 29. Also as the March was like a roller coaster I made both put and call ratio back spreads - in the hopes for the explosion in one or other direction to make a fast profit in the future
Options trading income March 2019 - March 2020
In the last March, calls and puts generated negative -$3,356.90 net income, while trading with verticals, futures, and ratio back spreads made another -$388.01 negative net income, in total -$3,744.91(after commissions). This is the worst month so far.
From verticals and ratio back spreads I was closing trades with Gold Futures, SPX index, EUN2, VGK, EEM, XLF ETF's and RDSA stock
Vertical and Ratio Back Spreads
- Gross income: +$141.62
- Net income: -$388.01
From regular calls and puts on stocks, I was closing trades on ET, XIN, SPCE, PEI, WPG, CSCO, PFE and WFC. My biggest lose comes from puts with SPCE, WFC and PFE, the rest you can see in the below table
Call and Put Trades
- Gross income from puts: -$471.80
- Net income from puts: -$3,356.90
Goals for March 2021 Options Income
Here is what I said a year ago when setting goals for last March:
I'm looking to triple income I made from options this year - the goal for March 2020 is $342 or more.
Wow, I didn't come close to my goal this time. Boom. Busted.
When setting goals for March 2021 options income I'm saying $1,000 and that should be achieved from covered calls/puts only.