A profitable journal with all entries/exits posted in advance

[1a2b3cppp]

Quote from cygnetnoir:

That's a four year high. Selling a call on a breakout to four year highs may not be the best strategy. Had you considered buying a call instead, risking a portion of your open trade equity to lever your profit potential with a limited risk?

I'm not trying to be critical. I mean to offer a serious question. You held the position this long through an extended consolidation, and then you chose to cap your profit potential on a breakout day that looks to be opening the way to a rally back to the all time highs over the next few months.

No criticism taken. I appreciate the feedback.

I have no idea how much higher SPY is going to go. Selling a call seemed like a way to test the waters here. If the position gets closed out it's not big deal. And if it doesn't, it's also no big deal.

I have no data suggesting that a new x-year high means price is any more likely to continue to go up. For example, on 4/2/2012, SPY made a 3 year and 11 month high of $142.21, and then 2 months and 2 days later had fallen around 16 points.

But I'm curious to see what price does now, regardless.

 

[1a2b3cppp]

9/7:

Open position:
SPY: $626.00
Call proceeds: $64.75

------------------------------------
$691.75

14 calendar days until option expiry
Max potential SPY value is $144.99 ($692 profit) above which my position will be called away.

 

[1a2b3cppp]

9/10:

Open position:
SPY: $544.00
Call proceeds: $64.75

------------------------------------
$609.75

11 calendar days until option expiry
Max potential SPY value is $144.99 ($692 profit) above which my position will be called away.
9/21 is the next ex-dividend date

 

[1a2b3cppp]

Sorry I didn't post an update yesterday; I was visiting family.

Here is yesterday.

9/11:

Open position:
SPY: $584.00
Call proceeds: $64.75

------------------------------------
$649.75


And here is today.

9/12:

Open position:
SPY: $632.00
Call proceeds: $64.75

------------------------------------
$697.75

9 calendar days until option expiry
Max potential SPY value is $144.99 ($692 profit) above which my position will be called away.
9/21 is the next ex-dividend date

 

[1a2b3cppp]

9/13:

Open position:
SPY: $852.00
Call proceeds: $64.75

------------------------------------
$916.75

However my SPY gain is capped at a price of $145, which gives me:

SPY: $693
Call proceeds: $64.75
----------------------------
$758.75

The chart reflects this capped value.

8 calendar days until option expiry
9/21 is the next ex-dividend date

 

[1a2b3cppp]

9/14:

Open position:
SPY: $917.00
Call proceeds: $64.75

------------------------------------
$981.75

However my SPY gain is capped at a price of $145, which gives me:

SPY: $693
Call proceeds: $64.75
----------------------------
$758.75

The chart reflects this capped value.

7 calendar days until option expiry
9/21 is the next ex-dividend date

 

[1a2b3cppp]

9/17:

Open position:
SPY: $867.00
Call proceeds: $64.75

------------------------------------
$931.75

However my SPY gain is capped at a price of $145, which gives me:

SPY: $693
Call proceeds: $64.75
----------------------------
$758.75

The chart reflects this capped value.

4 calendar days until option expiry
9/21 is the next ex-dividend date

 

[1a2b3cppp]

9/18:

Open position:
SPY: $855.00
Call proceeds: $64.75

------------------------------------
$919.75

However my SPY gain is capped at a price of $145, which gives me:

SPY: $693
Call proceeds: $64.75
----------------------------
$758.75

The chart reflects this capped value.

3 calendar days until option expiry
9/21 is the next ex-dividend date

 

[1a2b3cppp]

9/19:

Open position:
SPY: $863.00
Call proceeds: $64.75

------------------------------------


However my SPY gain is capped at a price of $145, which gives me:

SPY: $693
Call proceeds: $64.75
----------------------------
$758.75

The chart reflects this capped value.

2 calendar days until option expiry
9/21 is the next ex-dividend date

This position will likely be closed either tomorrow or Friday (unless price drops to under $145).

 

[1a2b3cppp]

Sorry for not updating for the last few days. I was visiting some family and taking some time away from the internet.

Shares were called away. No dividend.

Profits for the trade were $749.50.

Nice little pullback today. May enter again soon.

I will update this thread periodically in the meantime until I open another position.