Graphical depiction of the position/trade

Update of Portfolio P & L

Our adjusted position is doing fine and our delta's are now much manageable with our current adjustment the net premium taken in per contract has gone from $1.20 to $1.26. Our current P & L is now $1,437.50. which is a 3.28% return so far.

Portfolio Update for Adjusted positions

 The update position should look like the positions highlighted in the yellow background.

Happy Black Friday - Time for an adjustment

Followers, happy black Friday. Hope you are able to find all the sale items that will make your "Christmas portfolio"  whole.  Although the market opened on the lower side. Our Dec calls have hit a delta of 20. Sometimes moving as high as 21 when there is push into positive territory. To this end we will adjust our short call position to move back into a much comfortable range. We will create the following trade:

+50 C 770

-100 C 780

+50 C 790

This will invariably  close out our -50 C 770 position and reestablish it at the C780 mark. Our final position should be

-50 C 780

+50 C 790

We will also push out our put side when we are sure that the market has stabilized. We will roll up half of our put position to the 660/650.  We will make the following trade:

-25 Dec 660 P

+25 Dec 650 P

+25 Dec 610 P

-25 Dec 600 P

Guys, by making these adjustment, we have taken some of our profits off the table. However, we are in a much better position. We will roll the rest of the put postion up later. Find below the resulting overall trade:

-25 Dec 610 P

+25 Dec 600 P

-25 Dec 660 P

+25 Dec 650 P

-50 Dec 780 C

+50 Dec 790C

Portfolio Update for December Cycle

For the December cycle we took in an average premium of  $1.20 per contract. We expect to generate 13.63% return if everything works as planned and we don't have to adjust. So far the portfolio is up 2.56% with 24 days left to expiration.

Our contract size is 50 contracts, so those trading a smaller account should adjust their positions according. Please, do not be fully invested and always hold 50% of the account size in cash, in case we have to adjust. Because there are certainly occasions we will have to adjust the positions to stay away from danger and to keep our delta's within sensible risk criteria.

Thanks for following "Updownfinance" blog and keep sending your comments as to how to make this product even better. It is certainly good to know that a lot of you have stated you have started making money on a consistent basis by following this blog.

November expiration completed 12.36% return

All trades settle by tomorrow.

New Trades for the December Cycle

These are the new trades for the December Cycle and our Delta's are pretty good at this time and our Theta's are positive. December is a shorter option cycle than November, so let's see how our Theta decays works in our favor.

12.36% total return for the Month

12.36% total return for November options cycle. "This is how we do it". Please stay tuned for December cycle. I have been travelling lately and have not been able to post as much as I should.

Thanks for following the blog updownfinance.blogspot.com.