Our WalMart trade is now working
We track our Profits and Losses on a weekly basis. Every Monday, we fill out our form and take a detailed look at each position. There is NO reason to hold any position that is not making you any money if you have built an options portfolio. The point is income, options decay over time, and should be paying you every single day for the risk you have accepted. Stock ownership does not do this.
Over the last 10 weeks, we have averaged about $250 a week on this position. In order to get to this status, we had to work on correcting a losing position for the first 5 weeks. A beginning trader would look at that period and have a hard time dealing with the pain – after all, we lost $500 a week for 5 weeks! That makes no sense to continue, and we didn’t. We worked to adjust the position until it started to earn money,.
You have to learn to see the longer term perspective and understand where you can go with an option position that is built over time. You have to let the market tell you how to proceed, and often that takes an initial investment of time and money. It’s absolutely no different from any other business. This business, trading options, can pay you every day, 7 days a week – if you run your it like a business and not a casino.
Our current position is: short 300 shares Walmart (some naked calls were sold earlier and expired ITM so we sold shares short), and short 1 weekly 77 put (this week), & short three 77 puts and four 78 puts both expiring in 18 days. We have Delta near zero and daily time decay at $22. We’ve made $34.50 since the inception of our “WalMart trade”. Not good at all, but keep watching – our WalMart stock insurance store is open and doing a good business. Profitability is just beginning.
Stay Optioned, My Friend!