Investing Journal - T2S

Also, apparently I neglected to mention either put or call, but as you will see in the very first post of this thread:

I said:
My main strategy for this journal is going to be holding strong, established companies, with dividends ideally but not required. I will be selling monthly >>> calls <<< on all my holdings and will be swing trading the calls, while holding the investments themselves long-term.
 
Thanks for giving up, as everything you were saying was obviously backed by no factual evidence whereas everything I said was. you made one idiotic disproved statement after another and finally ended it by calling me a name. And you want MY thread which illustrates MY trades closed because YOU decided to just talk out of your A$$ and obviously make SH!T up which I proved in every single one of my responses.
 
Quote from Took2Summit:

Thanks for giving up, as everything you were saying was obviously backed by no factual evidence whereas everything I said was. you made one idiotic disproved statement after another and finally ended it by calling me a name. And you want MY thread which illustrates MY trades closed because YOU decided to just talk out of your A$$ and obviously make SH!T up which I proved in every single one of my responses.
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I had meant to use it as an adjective, as in, "you're f*cking r*tarded". Feel free to address where I was "talking out of my ass".
 
Quote from Took2Summit:

I see you've been editing all your posts now LOL. Can a moderator please ban this gnat from posting in my journal? Thank you.
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Editing my posts? No, I am afraid you're having cramps again.
 
Bro seriously, I'm done responding to you. I made it very clear in the beginning of this journal all trades would be calls and I also simply said the dividend effected the price I received. And you came to my journal completely out of no where and argued both statements for one reason or another.
 
Start of week: $21,658
End of week: $20,285 (-6.3%)
YTD: +$285 (+1.3%)

All my calls obviously expired worthless this month. I picked up something like roughly $1,000 in call premiums this month and still took an absolute beating.

I am now facing this issue mentally where I am unable to segregate past events with current events. What I mean by that is in the past the market has been dropping and my stocks are now below my cost basis. If I want to continue writing calls they will be under my cost basis and I will basically be accepting a loss at best on the position. On the otherside, each transaction should be treated independently. If I think selling a call at a certain price is favorable, I should do it without thinking about what has happened. Here is an example:

I opened my position in NKE at 92.28. Through selling my calls I've been able to bring my effective cost basis down to 88.11 Today NKE was at 80.60 at one point and I saw a trade I wanted to do. Buy back my NKE 82.50 Aug 20 call for $0.10 and sell an NKE 82.50 Sep 17 call for $2.90. In normal market conditions I would have done this in an instant. However, I hesitated and hoped NKE would continue to rally and I could get a better price, as we know the market tanked towards the end of the day, NKE is now 78.58 and the NKE 82.50 Sep 17 call is now for $1.90. And on top of that with my strategy I don't usually sell multiple strikes out, so I should now theoretically do the NKE 80 Sep 17 for $2.93.

I technically haven't gone out of my business plan yet. The rules I have set for myself is I must sell a new call every month on every holding for this portion of my portfolio on the monday after option expiration by noon EST. I can close and roll out an option during the option month based on discretion, but can never have a position without an option. IE if I buy it back, I have to roll it out to another strike immediately.

With that said, I would have still normally sold the 82.50 at the time I could have received $2.90. These markets can really wear on you mentally and make you question yourself. I need to remind myself to never question myself.

SUMMARY: I didn't close an option today, I let them all expire worthless and I will have to sell to open a call on M, MSFT, and NKE on Monday by noon EST and will make an update here shortly after once I execute.
 
Okay got in a little late but I guess it worked to my advantage as the market traced back up a bit. I am having some issues with my brokerage account. The options that expire on Saturday are still in my account on Monday and it is not letting me open a new covered call as it would not be covered since the old one is still in the account. I had to call in and execute the trades over the phone, this is an issue with their systems and unfortunately there's no way around it, however they are working on fixing it.

I ended up stepping outside of my business plan a bit as I feel like there is more upside then downside at this point. These are the following positions and hte associated premiums I received net of commissions:

MSFT 25 strike, Aug 26 expiration for $0.09
NKE 85 strike, Sep 17 expiration for $1.21
M 25 strike, Sep 17 expiration for $0.75

The weekly's are interesting because it provides more flexibility on one side, but on the other you can get caught in a weird spot like I did today. MSFT was at like $24.12 when I sold the call, I don't like selling the 24 here because like I said I think the upside potential is greater then the downside at this time, and I only got $0.11 for the 25 ($0.09 including commission) which almost makes it not worth it. Ideally I would have liked to sell the non existent 24.50 strike. Hopefully we get a better price placement next week.
 
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