Report # 21, End of April 9th weekly accounting.

Photo of Grandpa Ray, OEX Option trader, with wife Silvia on left and daughter Diane on the right. 2010.




GAINS OR LOSSES YEAR TO DATE ( March start )

EACH TYPE OF TRADING STARTED WITH A $5000 ACCOUNT, IN ORDER TO COMPARE THE RESULTS DURING THE LEARNING CURVE. The VIRTUAL ACCOUNT with the broker is supposed to evolve into a medly of the other three types of trading, depending on results and the learning process, of when to implement them in different market conditions. Since Option House does not offer weekly OEX option EXPIRATIONS, we will have to open an account with another broker for that part.

Virtual Account: OPTION HOUSE- no trading - remains at Balance of:( -37% )

Paper trading in Quickie Trading: +6%(reduced from 12% to +6%)

Credit Spread singles: ( paper trading ) +10%

Channel credit spreads called CONDORS (paper trading) +12%

Debit Spreads ( haven't started studying them yet ) (I'm also interested in eventually studying ratio spreads, diagonals and horizontals, and butterflies sometime. Got too much on my plate right now, trying to learn and absorb this stuff above.)

VIRTUAL ACCOUNT WITH "thinkorswim" brokerage VIRTUAL BULL CREDIT PUT SPREAD + 2.5 % WEEKLY EXPIRATION

Trend longer trading (6 or 8 per yr)( hasn't started yet )zero neutral
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This week trade was only; a VERTICAL CREDIT BULL PUT SPREAD. Was only able to leg into one side and unable to complete a CONDOR CHANNEL.
Sold Weekly ( 5 contracts - $2500 margin ) 530 PUT for credit of + $150
Bought Weekly 525 PUT for debit = difference + .30 cents in spread
Expired for credit of + $150 - $25 commission = profit + $125, or 2 1/2% on $5000
I'd kept $2500 of the $5000 account in reserve for the other side of a CONDOR, which didn't happen.
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LESSONS LEARNED THIS WEEK!
I was trying to confirm the CHANNELS for a CONDOR,also the parameters of safety, versus the spread allowable to give a decent return. One guy on the internet was saying; he bought on a Thursday to expire on Friday, using WEEKLIES. I tried that and it didn't work within my safety parameters and the decent return expected. In fact, it wasn't possible except at closer in - higher risk parameters. My accidental entry based on volatility seemed a good one. Will try it next week, on both sides of a CONDOR and see what happens?

For past trade details scroll down to Report # 12 of trade action.

http://oexoptiontradingexperience.blogspot.com ( history of learning experience )
http://westernbelizehappenings.blogspot.com ( photos and articles of living in Western Belize, foothills of the rural Belize Alps. )