Microscopic option selling

D

deltazero

Hi all,
I will use this thread to show my real account where I attempt to make a little bit of pocket money from selling options. There is rough idea of the logic behind the trades:
- Sell short term options to collect time premium.
- Buy long term options in 2:1 proportions to insure against big stock move.
- Roll short ITM options for credit only - roll as far as necessary.

I tend to stay about delta neutral in long term options. Delta of short term options is not interesting at this point.
This is real money, although very small - at the moment account value is $3k. Broker used is OptionsXpress. I will report account value every day. My goal is to get $3.5 by July, at which point I will pay in more money into account.
 
Quote from newwurldmn:

Why not be delta neutral in the whole structure?

Btw - talk with words like "will only roll for a net credit" is dangerous.
More...

Keeping delta neutral would be difficult. Especially since I'm short gamma, delta will always go against me.
Regarding rolling for credit: I will try to keep my cash 2x the requirement. If there is more than that, I will 'invest' excess to roll for debit only to get higher theta.
 
I closed short Apr 27 put, as it was too little time value (just above a $ a day) and too much risk in case CLF went down.
Now account value is at $3006, delta 46.
 
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