The WalMart Trade continues to cook…….
We opened the WalMart trade early this year. Details are provided in previous blog posts.
Today, on April 2, 2014, this is the status:
Our Delta on the position is right at zero, so very little market risk. As readers know, this is always a temporary situation, but it is what we strive to achieve. Our daily time decay, or Theta, is about $27. We are collecting about $27 a day on this trade.
Our profit on WMT since we started this trade string is now -$290. We have lost a little money, but at the current rate of time decay, we should go profitable in about 10 days. Remember, when trading options, we are talking about calendar days, not just days when the market is open. We get time decay on weekends and holidays, too!
We started the WMT trade when the stock was in a bull market. In the second week of the trade, WMT shifted into a bear market. Using our time-tested, proven system, we continued to trade the symbol with various combinations of short puts and calls. We owned some stock, at times we were short some stock, we were short and long different options from time to time. After just two weeks in the trade, we were down $2390, then two weeks later, down $2480. But we were down less than if we had purchased the stock outright. We continued to collect Theta every day. Over the next 7 weeks, our weekly P/L performance was: -$2100, -$1575, -$950, -$600, -$470, -$395, -$340 on Monday of this week. We did pay a dividend of $48 in March, so that must be added in to the total loss. I know that is probably a confusing sentence, but the subject of dividends on short stock (which happened to be our position at that time) is something we can discuss at a later time.
You can see that our position took a few short weeks to establish and then began to make $300 a week – and this will now continue. Subscribers get the trades as they happen, and can trade along, learning to create income with options. Join us at DeepPocketOptions!