Tuesday, July 26, 2016

Looking back at the year so far and state of affairs.

What an emotional year, from the depths of a wipe out to a resolute resurgence that would make Pyrrhus proud.
After an unexpected first few weeks of the year that almost wiped me out, to a more disciplined, dedicated  and patient approach selling cash covered puts at a maximum of 30 deltas.
I prefer returning to cash as soon as possible, so I don't want to put trades on for too long or farther out. 
Ideally I'd like the accounts to be all cash over the weekends.

Upset at fees and poor 2.4% yields, I broke open 2 managed accounts and decided to manage them myself.

Account 1 
Aggressive Tier3 margin. All sorts of trades stressing on high IV but an even higher delta increasing probability of ITM but simultaneously increasing probability of profit. Few synthetic positions during earnings , rarely long. Absolutely no short short strangles or short straddles.
Heavy trading of net zero back ratios and cash secured puts.
Starting capital 3500$ currently 5869$ yielding a 67.68% return.

Account 2 
Only cash secured Puts at around 30 deltas, more aggressive in terms of number of contracts. This is an older account with some oil and pink stocks that have fared poorly from previous years.
Starting cash 9300 currently (19886 -1500 recurring deposit which will be distributed) = 18386$ yielding a 97.7% return.

Account 3
A large account that will only be used for cash secured puts on premium stocks I absolutely want to own regardless of IV.
This account will be the steady income earner and only 50% of capital will be used.

Account 4
An IRA account that will mimic Account 3 but with fewer contracts and only 75% of capital will be used.

Account 5
A more aggressive version of Account 2 with a more complex and dynamic trading approach.
Again purely option based and might contain long options or long stock but will trade more infrequently.
This is the resurrection of the account that blew up earlier this year but very carefully managed with hedged trades.
Starting 15500$ and currently $18729.5 (liquidation value) yielding a return of 20.8%.