Edit: Sorry, still not good sizing this stuff. Not going to try and fix it. I spent way too much time in the truck so far this week. I kept thinking about how my performance was stacking up against last year. So I was looking at my Performance Page on Schwab and yea, 2023 was bad. Well, that’s why I hammered out my trading rules and stuck to it this year. I know Poopy likes attacking it, and calling me out if I do something stupid, but I still like it. I feel like selling options is the best thing for me, and I’ll trade like that until I stop trading. I just didn’t have rules, I was just doing what felt right. Most importantly I didn’t have exit plans, so I pretty much gave up on losers. I wouldn’t recommend that if you're trading like me. So I lost around $1000 in 2023 in my Schwab accounts. Even on Premiums I took in around $7500 in 2023 and I'm sitting at $13,500 this year. I think I still have room for Improvement as I can cut my underperformers and try to get better stocks. As for my trades, HOOD is going to release Earnings today, and if it jumps I’m not sure I’m going to keep chasing it. I might just flat out buy it, it really depends on where it is on Friday. If I stop HOOD I’d have a $5000- $6000 slot open, but I don’t really have anything in that price range I'm interested in. I guess I’d throw it into a dividend stock, but I don’t have anything really watching there either. DG is still ranging around $80. A lot of small towns here and Illinois have Dollar Generals in them now. It's a little niche they have of getting places where people have to drive to another town if they want an actual grocery store, or like a Wal-mart. The stores don’t really work as well in any kind of larger population center IMO, but they have this little foothold in rural midwest. And they pay their driver well, the distribution center south of me pays about $90K a year for very similar work to me delivering to restaurants. BP, I sold a put today. 11/1 $29 for $18.34. If that expires I’ll buy Friday ahead of the dividend. I’ll probably get some hate for that, but hear me out. BP fell after earnings It pushed the dividend to 6%. They have been rebuying shares, the dividend coverage and payout ratios are still good (as of 9/30/24). I feel like oil has been beaten up with the push for electrification. The numbers don’t work in Long Haul Trucking. Tesla Semi has a 500 mile range and a 30 min charge gets you 70% battery (another 350 miles). If you use a Tesla Megacharger. My truck has 2 75 gallon diesel tanks and gets about 6.5 mpg. 900 miles and lets say 30 mins. refueling. I drive with a partner so legally we only need to stop once around the 8 hour mark for a mandatory 30 min break, and once at 11 hours to switch drivers. And you can run like that legally until you hit your 70 hour mark. Which is all you’re legally allowed to drive without a reset. Set aside the fact that there is no charging network for semis, those numbers don’t work unless you increase the cost of shipping. Your not going to pass a mandate and magically get around the fact that battery technology and infrastructure aren’t there. So I am bullish on BP and oil in general. I'll be back Friday to roll some positions.
“Ain’t no love in Oklahoma” I’ve been listening to that song a lot this week. Note: Working on picture sizing, so this might look bad. Not going to fix it if it does. I was thinking about rolling HIMS out to 5/16/25 $20 Call. That would put it around a 29% return within a year. Earnings are Monday though so I think I’ll wait it out some more. When I have an ITM position like HIMS I like to roll once it hits the 2 month mark. It makes for a boring Trade Journal but it works for me; the more positions I have tied up the less I have to think about week to week. TSLA, AFRM, and IWM are all sitting pretty out there in February, so I don’t have to worry about them until Christmas. I still have HOOD, BP, and DG (in Robinhood) to trade week to week right now. So i’m still engaged every week and I can scratch that trade itch. I closed the BP Put for $2.66 and kept $15.68 (0.54%) from that 3 day trade. I turned around and bought it This morning. Its Ex-Date is next Friday so I did not sell an option on it. I’ll wait until and get the dividend before I start selling calls. Hood I rolled to 11/8 $23.50 for $85.68. I thought about just buying, long term I want to hold HOOD, I just think it could drop more. So I opted for at the very least a little extra premium and let the market decide if I should own it or not. So far since switching HOOD from my Robinhood account to a Schwab account I have sold four contracts and made $137.38 in premium which would be 5.85% if I get assigned at $23.50. Over in Robinhood I rolled DG to the 11/8 $81 Call for $215.94. Might as well swing for the fences when I get the chance. Assignment at $81 would leave me with $326.85 in premium and about $24.50 in appreciation combined for $351.85 (4.35%). That's about all I am going to do today, I also looked at rolling SQ but I don’t have a good reason. The chart looks like it might just come to me before January, they also have earnings next week. I started looking at Trading Journal software, cause I’m kind of lazy and manually entering in trades is not fun to me. I might sign up for one and try it, I’m just not sure. What I’d really like is to get charts with my adjusted price charted on there along with the stock price. Especially if I could get that without manually entering all the data. If I find something or try out a Trading Journal software I’ll let you know.
English is my first and only language, but every time I read back through what I posted last time I question how true that statement really is. Its rough, and I apologize to anyone that is slogging through that mess trying to figure out what I'm talking about. I honestly consider buying one of those games that teach kids how to type with all their fingers. Not much going on today, I sold my HOOD Put and did a Buy/Write @ $27.55 with the 11/8 $28 Call total Premium for buying the put and selling the call was $32.68. That brings my total Premium up to $171.36 (6.22%) since 10/11. Of course, HOOD jumped up $1 since I did that, but at least that gives me something to do Friday. I was expecting HOOD to drop more, especially after its earnings miss and it still might. But the election has almost everything jumping, so I decided to jump into HOOD instead of chasing it around with Puts. I just like to see a set reserve amount of cash. Now thats locked in, and I only have to worry about bringing my cost basis down. Other than that I am working on making charts for SQ and my finished HOOD trade from my Robinhood account that tracks my cost basis and strike prices over the whole trade. I have SQ pretty much up to date and it was interesting to look at. I am going to wait until I have HOOD done too and post them both and give my thoughts on them. I feel like putting out the data is way more helpful if people are following along to see how I’m doing. Also I did things I think ended up being counter productive. Like rolling backwards, in hindsight that really just added equity into the premium that I didn't need. Since I’m selling Options it doesn’t hurt me, but I think it forced me in the end to have to roll out father and sit in positions longer than I would have if I had only rolled forward. That's all I got.
I snapped these last night because I wasn’t sure if I was going to wake up before the market opened. I like to get a static number and I’m not going to wait until 4pm…. so as of 11/7 my accounts stood at $80,637.53 up $11,528.73 (16.68%) YTD. As of 10:30am I’m up slightly for the day. Today I made trades on BP, HOOD, DG, and swapped SNAP for HIMS in the small account. First up, BP. I didn’t have a contract on BP last week because its ex-dividend date. Today I sold the 12/6 $30 Call for $42.34, I also bought 2 shares at $29.06. That might seem counterproductive, given I bought in at $29.56 last week, but my cost basis is still $29.56 a share. Premiums have offset the cost of the extra 2 shares and the $30 strike still gives me a profit over the entire position. To me that means I have free shares of BP. Who doesn’t love free stuff? HOOD was ITM since I sold the contract last week so I rolled it out to the 11/22 $28.5 for $27.68 and I’m well aware that that is still ITM. I’m trying not to roll out farther than I need to, and that was the first profitable step. Being assigned here would give me a profit of $266.36 (9.67%) so even though I’ll be emotionally devastated I should be okay financially. DG nothing exciting, rolled to 11/15 $80 for $77.94. Cost basis is $76.74 so its not underwater but its not great either. Maybe if I draw some upward trend lines on the chart I can persuade it to move higher. Over in the small account I bought back the 4/16/25 $10 Put for SNAP and sold a 12/6 $18.5 Put for HIMS. That switch ended up costing $1.06 but bought me 4 months. I’m still not excited about HIMS but with only $1890ish to work with beggars can’t be choosers. My 4 month position in SNAP ended with about $3 to the positive so it wasn’t totally for nothing. Anyway, that's all I got. I’m rushed today because apparently if you get asked 3 or more times to change the oil in the Lexus and you don’t do it, deals are made behind your back for your son to change it. So now I just have to supervise him cause he’s only changed the oil in something once before, and I have to run to get the filter which she still has in her purse.
Forgot to mention, total premium collected this week was $179.58. Also just playing around I bought 12/6 $29 Put for BP to hedge with. Honestly I'm not sure what I'm doing as far as using Puts to hedge. So we'll all get to go through it together and maybe I suck at it and won't do it again. But, BP is in a downtrend so it seemed like an appropriate time to use a hedge. I'm sure Poppy will berate me and tell me what I should have done instead if I'm off base.
I can't speak for poppy, but you don't know what you're doing and I have no interest in offering advice. GL.
I didn't think of this until on my way to work but a better response to Poopy would have been " I'm a peacock, you gotta let me fly!" Maybe next time.
DG as of 11/12 Pink(Purple? Fuchsia?) Line is adjusted price per share. Is this the point where the Wheel fails and I can't crawl out of my position? No one told me where that point was. Can someone point it out?
I accidentally used Hazelnut creamer in my coffee this morning. Its not enough to throw out the whole cup but it is enough to have a disappointing aftertaste of hazelnut. I just wanted to share some of my personal struggles with you guys as I feel like we have grown closer over these past 30 days. Anyway…the color formally known as purple is adjusted cost, white is strike prices. I also highlighted 2 moments of negative equity. The word equity was just not coming to mind when I did that so I called it drawdown. I think you can just look at it and figure out what I'm trying to convey. Most Underwater Trade: I did sell an option at $63 when my cost basis was $64.90. I did it a few times but that was the biggest difference. All percentages are based on the measuring tool and rounded, but its close enough. The jump at the end is today's trade. I said I bought time with another trade, I can’t remember which one, but I’ve been mulling over the idea of buying the time back. SQ was stuck out in January and at $70. I also had $2600 in premium collected since buying in, which is why my cost basis was all the way down to $54.50. So I rolled SQ to 11/15 $89 and paid $1863. I still have $803.11 in premium and with that an $89 strike would be around 20% return. I did something similar with HIMS: What’s different is I’m actually -$377.25 in premium but the $29 strike will give me around a 23% return with the negative premium. Altogether on paper I paid out $3026.39, but really that was just possible profit tied up in those longer strike dates. Accounts balances are actually close to where I estimated they could be back in Feb. if the strategy worked how I thought it could, which is about 2% a month. I know that's not worth much but it gives me the confidence to post estimates in January for 2025. Robinhood: Estimate - $15932 Actual - $14966 Schwab Accounts: Estimate 1 - $30500 Actual - $30494 Estimate 2 - $35380 Actual - $32537 So…as far as a strategy that performs within expectation. That doesn’t require synthetic delta zero calculus level statistical engineering to profit. 30ish trading days out from marking a successful year. It looks like I did pretty good. Seems like there's room on my Bandwagon for some struggling day traders. I’m here for you. I’m on Facebook marketplace looking for a soapbox right now. I think it’d be under vintage but I'm not sure. Anyway, they asked me to work Friday so I won’t be in front of my computer to trade. My plan is to trade at some point from my phone and I’m just going to roll HOOD and DG and hopefully let HIMS and SQ go, but roll them if I have to. I’ll try to write up what I did sometime over the weekend, maybe Friday night.