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:
- $ZAGG June 9 $PUT short
- $SODA Oct 42.5 $CALL short
- $PAY June 46/48 $CALL spread long (oink)
- $PWRD July 10 $PUT short
- $JOY June 52.5 $PUT short