Weekly Report 2021-08-01

trading journal

Exactly two months ago, we officially launched the Options Trading Club to the public, and since then it has been an incredible journey.

As I am writing this article, we have a total of 284 members and already several enthusiastic reviews on TrustPilot. Inside the community, we trade 4 different robust options strategies (plus a few bonus ones) and have a total of 21 channels for education, resources, chats, trade ideas, etc…

The mission of the community is to share knowledge and trade ideas, while supporting each other on the journey to financial success. This allows everybody to learn, share and grow through real-time authentic and engaging conversations, in a troll-free environment.

We are looking to help members generate consistent returns in the stock market while not losing sleep over their portfolios.

Inside the community, I offer exclusive access to all my real trading journals via an instant private feed. Every time I open, adjust, or close a position, I immediately publish the related details and charts. All the more important updates are instantly pushed to all members.

Here is the weekly recap of what happened inside my Trading Journals during the last week for all the four official options strategies I trade in the Options Trading Club. I have 100% skin in the game on these positions, as these are all real trades I make with real money in my trading accounts.


Cash Secured Puts (CSP)

The CSP (Cash Secured Puts) for income generation is the most popular strategy in the community. So far, on my CSP Trading Journal channel, I have closed a total of 26 winning trades and zero losses, since the launch of the Options Trading Club.

Last week, I was able to take advantage of the panic sell-off in Chinese stocks, as on Tuesday I published the following trading idea:

STO FXI 08/06 CSP $35 for a $0.46 credit
Delta = 0.19
IV = 50%
Projected AROI of about 48% in 10 days
Playing the Chinese stocks deep pullback!

This the alert I posted the following day:

BTC FXI 08/06 CSP $35 for a $0.06 debit
I am keeping 87% of the premium for a 417% AROI in 1 day
The Chinese crash worked pretty well in this case…


The Wheel Strategy (WS)

ARKK is probably my favorite ETF to play the Wheel Strategy.

On Friday, ARKK 07/30 CSP $114 expired worthless. I kept 100% of the premium for a 73% AROI in 11 days. I still have an 08/06 CSP $112 open.

With all the premium collected so far on ARKK in all the trades played from the beginning of 2021, I was able to accumulate a cost basis reduction per share (in case of assignment on 100 shares) of $54.10 (excluding commissions). And so far, I have never been assigned!


Vertical Credit Spreads (CS)

Inside my Credit Spread (CS) Trading Journal, I run a $1,000 virtual portfolio to teach beginner traders how to grow a small account with a conservative options strategy using discipline and patience. The account is now fully in cash and waiting for new favorable setups to be played.

The last closed position was a Bull Put Spread on IWM. Despite being a difficult trade, in the end, inside the official portfolio I was able to achieve a respectable 26% profit.

Anyway, when the trade was moving against me, I provided also an alternative way to repair it and actually improved the result.

The original IWM 215/218 Bull Put Spread that needed to be repaired had a max profit of $54 per contract, while with the repair process, I was instead able to accumulate:

$347 (net profit from the sale of the original long leg of the spread)
$190 (premium received from the sale of the original short leg of the spread)
$242 (additional net premium received from rolling one week out the short put)

for a total profit of $779 (excluding commissions) rather than the original $54 maximum potential profit of the spread, and all for a trade that at some point went massively against me. I really never stop appreciating how powerful options can be when used properly!!


Time Spreads (TS)

The last official strategy of the Options Trading Club is on Time Spreads (TS) such as calendar or diagonal spreads. I also use these strategies as a delta neutral edge against the other more directional strategies traded inside the community.

At the moment, I am in the middle of a double calendar campaign on IWM that so far is proceeding pretty smoothly, with the first round of adjustments on the short legs executed on Friday. I will post the final results in my weekly reports at the end of the campaign.

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