Trading Credit Spreads for Consistent Profit in Small Accounts

Week of 6/16

This week was tough to watch, but I did manage to eek out a profitable week, at least from the cash perspective. I have a more large positions in the hole than I would really like to have, but they are mostly still in bounds and have over thirty days to rectify. My return numbers a re a little skewed because because I count open trades in that statistic. They would be considerably better if I counted only closed trades. I like to have a picture of where I would be If I cashed out everything on a given day. Win percent bounces around between 90-88 percent, which I am more than happy with. I have begun to trade closer to the seventieth percentile and maintain a high percentage win.

News seems to be affecting the market a little more this week than it has in the relative past. I will need to start paying attention to what stories seem to shake up the IV. Everyone is clamoring about the next market crash and it’s apparent Armageddon nature, given the stage of exuberance recently shrugged off. Generally that means we go higher just to frustrate the institution. But what if the market does crash? I recall hearing stories about peoples retirement accounts getting cut in half in 2008. If you have a had a retirement account for a very long time you remember all of the times it has been cut in half on market crashes. In the end you realize it’s ok, because after all of those crashes, here we are at record highs in the market. But what if that account did not have to give up half of it’s value and you still got the increase  back to all time highs. That is the beauty of options. I believe that a significant amount of money should move out of passive retirement investments and into self managed accounts. If you can educate yourself on a working system and implement it with precision, then you and me, regular people, can beat the passive retirement investment community. You can be your own hedge fund. Even in retirement one could potentially continue trading for income. It is a no brainer, but the barrier to entry is the killer of most disciplines, desire to learn. As long as the ability top trade derivatives exists, I consider this the fourth or sixth most important lesson in life.

6-16

Trade Journal – Open Trades (6)

Trade Journal – Summary (3)

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