May trading journal review

Well they say that a trader should sell in May and go away. I certainly did some selling in May myself, but one of the big adjustments I continued to make was to increase the use of Option Collars. I have done several posts on this on the blog so If you are unsure as to what I am speaking of, just do a search for “Collar” and you’ll have several posts to choose from.

Some other key takeaways from the review:

  • Much larger number of trail stop hits as stocks gyrated a LOT for me (I am sure this holds true for you as well).
  • I re-entered a lot of positions, quite an increase in this for the month.
  • I did fewer option earnings trades, but increased the size. Continue to focus on ensuring that I design the trade for one thing: FLEXIBILITY
  • Increase in the use of Diagonal Call Calendars
  • I have a larger amount of cash in the Swing account due to the Fab 5 being on hiatus at the moment (as I adjust it to allow for more candidates).
  • Made an adjustment to a mechanical trade I do with shorting $VXX each Friday, and covering on Monday at the close. I now incorporate the option of holding the short until the Tuesday close if the position is unprofitable on Monday (so the option is a 4 day hold instead of 3 day hold, including Sat/Sun).
  • A slight increase in $PUT selling overall with most of this increase due to Friday PIN action trades.
  • Long Term account continues to be heavier in cash on average of the past 12 months. Positions: $AIG $SBUX $T $WFM
  • Swing account positions: $EXPE $LQDT $LVS (S weekly 49 $CALL) $NTAP
  • Regular Option account positions: $EMC $FB $INTC $PBY
  • Daytrade account positions: just chillin’ at the moment
  • Earnings Option account positions:
  1. $ZAGG June 9 $PUT short
  2. $SODA Oct 42.5 $CALL short
  3. $PAY June 46/48 $CALL spread long (oink)
  4. $PWRD July 10 $PUT short
  5. $JOY June 52.5 $PUT short

 

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