Hi readers! This is another update on my options trading simulator. I made some adjustments to my positions, which led to a really awesome P/L for my positions. Here are the updates:
For QQQ, over the past 2 days, the stock price went down by 5 dollars each day, so today my puts were deep in the money, along with my other short calls. My short 365 puts and long 369 calls were losing a lot of money, as the stock was at around 360, so I closed those 2 positions. I held onto the other 2 ones because combined, they were profiting by around $14,000. Again, I had 382 short calls and long 382 puts so they were about 20$ in the money in regards to the stock. Then, to bring my negative theta to a heavily positive theta, I shorted 30 of the 367 calls. This gave me some huge credit, so to bring up my remaining deltas to around 0, I bought 10 of the 365 calls. Again, all of these trades are in the September 29th expiration cycle. I know my position is heavily profitable to the downside, which is happening right now, but since there are only 7 days until expiration, I don't think QQQ will make a huge move to the upside. If it does, it will definitely be a slow move, as stocks can drop really fast but take more time to get back up. This gives me enough reaction time to sell some of my puts and short calls, if necessary, and adjust for the upside. And, my overall theta position is heavily accumulated to the positive side, which is fine because I do not expect QQQ to move to the upside again until expiration, so my position will be gaining more and more value as QQQ just sits there or goes down. I am extremely happy because I made these adjustments with little to no cost, as the money I got from exiting the original 2 positions and the credit from the 30 short calls helped me buy the 365 calls and give me some more credit. And, my position is really profiting right now, as you can see in the picture above. If this position closes like this, this will be the biggest win I have ever experienced in trading.
For AMD, I exited the long 108 calls because they were really unprofitable, since AMD was at around 98 or 96 dollars today. I exited those, and I got around 1.5 thousand dollars credit. Then, I bought 10 of the October 13 98 calls, just to hedge against any big move to the upside. My other two positions were profiting really nicely, so this was just a small hedge. Also, my September 22 108 calls that I am short are expiring today, and they are profiting quite nicely, so I will get some nice income from that tomorrow. I cannot wait for that, and I can't wait to see which direction AMD will go in the future before October 13 and what adjustments I will make.
Here is a picture of my account today:
That is it for this week, and thank you for reading my blog! I cannot wait to update my positions next week, and see you then!
