Hi all, I will use this thread to show my real account where I attempt to make a little bit of pocket money from selling options. There is rough idea of the logic behind the trades: - Sell short term options to collect time premium. - Buy long term options in 2:1 proportions to insure against big stock move. - Roll short ITM options for credit only - roll as far as necessary. I tend to stay about delta neutral in long term options. Delta of short term options is not interesting at this point. This is real money, although very small - at the moment account value is $3k. Broker used is OptionsXpress. I will report account value every day. My goal is to get $3.5 by July, at which point I will pay in more money into account.
Why not be delta neutral in the whole structure? Btw - talk with words like "will only roll for a net credit" is dangerous.
Keeping delta neutral would be difficult. Especially since I'm short gamma, delta will always go against me. Regarding rolling for credit: I will try to keep my cash 2x the requirement. If there is more than that, I will 'invest' excess to roll for debit only to get higher theta.
I closed short Apr 27 put, as it was too little time value (just above a $ a day) and too much risk in case CLF went down. Now account value is at $3006, delta 46.
No trades today, account $3060. My both options expire tomorrow, I will post roll details tomorrow evening.
I rolled my short call and put to Dec 13 strike 25 for $95 credit. I will post account value after market closes.