July Trading Journal Review

I make the effort at the end of each month to review my trades for the month as well as review my various notes/data in my Trading Journal and other spreadsheets (like earnings database). I tend to focus on looking for patterns or changes in my trading habits in that particular month to see if any adjustments need to be made.

For July 2012, the one thing that really stands out is the significant increase in the use of Option Collars. Protecting positions, either long or short, has been paramount this summer and this has been/continues to be my weapon of choice.

Some other data points:

  • I did (6) U-turn trades which is the largest # this year in one month
  • I made an adjustment to the # of earnings trades that I put on pre-earnings to accommodate my desire to trade post-earnings reactions instead. I expect to continue this pattern in August
  • The Fab 5 was quiet into the end of the month with $MDVN being the only position on at the moment. The candidate list continues to be worked and I expect some action in August.
  • I had a slight increase in trade hedging being required for earnings trades that went outside my planned parameters. This is part of the plan with every trade, but worth noting that I had to go long or short stock more in July to hedge.
  • Account positions currently:
  1. Long Term account: $AIG $T long and $FB short
  2. Daytrade: $UA long with August 55 Collar (currently gain is capped)
  3. Swing: $ALXN $AMT $TRIP $TFM (all with a Collar, covered call, or long a Put)
  4. Option: earnings trades:
  • $CMG long the August 420 Call (goes poof most likely)
  • $BIDU long the August 95 Put (goes poof most likely)
  • $SBUX short the August 45 Put
  • $EXPE short the August 50 Call and long the 43 Put (vulnerable but have significant gain from long stock trade, hedge)
  • $CRUS long the August/September 32/33 Call Diagonal Spread
  • $COH short the August 50 Put

Note: For those tracking the ETF Short Pairs trades that I do each year, this is how the performance has been to date (just on price):

  • $TNA & $TZA $10.76 of decay for the pair in 2012
  • $FAS & $FAZ $8.75 of decay for the pair in 2012

The $VXX weekend short trade, the success of the trades in 2012:

6 unprofitable trades (when closed on Monday, per the rules). If held until Tuesday, this performance is 5-1 profitable.

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