Finally, a RED week!
- June 23 Market Update
- June 23 Options Trades
- Details of my options trades
- Making money in RED markets?
- What to do in Week 26 (June 26-June 30)
- Like/Follow and support me.
June 23 Market Update
Prior to this, the market was going up for 8 weeks! The markets are not like a 50/50 coin toss. In fact, trends and patterns are more likely than the randomness of a coin flip. When you know this, you will be prepared for 2-4 weeks of downtrend.
June 23 Options Trades
Details of my options trades
Summary:
- Rolled WFC covered call UP and OUT for $0.22!
- Rolled WBA covered call UP and OUT for $0.34!
- Rolled ALLY covered call UP and OUT for $0.38!
- Rolled SQ covered call OUT for $0.17!
- Fixed an incorrect trade on an IRON Condor Yesterday. I used SEP 15 instead of Aug 18. I collected $0.14 yesterday and today it cost $0.12! So the net is nothing when you factor in the commission paid out.
Making money in RED markets?
Covered calls are not a good way to make money in RED markets. The underlying stocks lose value. The covered call premium does not offset the losses incurred. Then why do them? Collecting $5 or $10 is better than not collecting anything. If you do this over 5 or 10 years, you can see the difference it makes.
It is my Iron Condors that can do well in FLAT or Down markets! Iron Condor has risk on call and put legs. I structure them so that 80-85% of the time, they win in my favor. The other times, I lose. The goal is to make sure my losses don't wipe out the gains that I made so far. This is a common problem with new traders. You can make 20 winning trades and then ONE losing trade wipes all the profits away! My goal is to make a profit each year, each quarter, and each month. On a weekly or daily basis, I don't worry too much about what happens!! If your trading plans work, you should be profitable as a trader.
What to do in Week 26 (June 26-June 30)
I expect the markets to be RED again.
If I am right I will do:
- Wait for an exit on my Iron Condor.
- Add risk to some of my Covered calls by lowering the Strike price.
If I am wrong I will do:
- Close Iron Condors (July).
- If my covered calls are getting tested, Roll Up and Out.
Like/Follow and support me.
For 2023, I have a Social Media Option Challenge going on. I will post "4-5-6" Lots of Trades of Iron Condor on SPY all year. Plus I will add in 4 Visa Iron Condor and/or 4 QQQ to that. Those trades will be posted on Twitter and other platforms.
Please like and follow me. I don't pitch any of my services and I post my trades usually within the hour of making my trade. Most traders do not show their trades as they make them. They only pick and choose the winning trades and share those. My sharing my trades at the time of opening/rolling/closing you can see if I the real deal or not.
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Let's see what happens let week!
Have a profitable day!
Solving-Chaos