For Oct and Nov 23, the US stock market (using the S&P500 as a reference) went through some downs and ups. I managed to generate S$2,858 and S$2,549 respectively for Oct and Nov. In this post, I would like to share my trades for reference.
This is a summary of the trades for Oct 2023:
I use mainly this strategy that worked very well for me in 2023:
My Options Trading Strategy For 2023 | Introducing SOP Options Trading Strategy
I made slight losses on 2 contracts, namely Hersey and Coinbase. For Hersey, the price action was non-existent and the price was moving painstakingly slow. Thus, I decided to exit the contract and use the funds elsewhere.
For Coinbase, it was quite regrettable as I closed the contract (on 23 Oct 23) just before the share price rocketed. If I had waited for one more day, I would have closed it at a profit of close to USD 660. However, I did not want to take the risk as the contract was expiring in the money with a few days left. My goal in using the SOP strategy is not to let it get exercised so that I keep earning premiums with new contracts, one after another.
Another contract worth mentioning was my SELL PUT contract on Tesla as it slipped through my fingers as it was exercised early, due to Tesla’s share price dropping and the contract expiring.
The extrinsic value was close to zero and the contract was deep in-the-money. Thus, the risk of early assignment increased and I was planning to roll it to a later date, but narrowingly missed it as the market closed. In the end, I was assigned the shares, which I used to sell Covered CALL.
This is a summary of the trades for Nov 2023:
For Nov, I continued with the SOP strategy and I changed the description of “Option Type” from Cash Secured PUT (CSP) to just SELL PUT because I did not actually need the collateral to do a CSP trade as I am using a margins account.
You can read more about my method here:
How I Use My Margins Account To Earn Extra Income (Safely)? | How My Margins Account Help In My Selling PUT Strategy?
In Nov, I also initiated new positions using vertical spread options strategy, specifically the BULL PUT Spread. The rationale is quite similar to the SOP Strategy in selling an OTM PUT spread, and expecting the share price to close above the higher strike price so that the contract can expire worthless.
Read more about the strategy here:
How Does Bull PUT Spread Work?
I select a longer time frame so that the chance of the share price rising with time (2 years later) is higher and that I have a higher chance of getting the full premium. If in the short term, the share price rises sharply, I can choose to close the contract for profit, just like what I did for my Tesla Bull PUT spread contract below.
Concluding Thoughts
I hope you find the references and strategies shared useful. Moving forward, I will be sharing my trades on my Patreon page so do follow me there if you wish to get updates on the same day as my trade and not wait for an update many days later.
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