Though, I have already achieved my May’s portfolio return objectives even before May has started (my monthly target is 5%-7% returns) there is enough room in these income trades and therefore I can continue to hold. I don’t expect returns like March (> 30%) but there is enough room to make it bigger than 10%.
Here is an update on the income trades that I had opened for May expiration cycle. The returns are as of April 27 closing day.
- Trade-1 RUT Iron Condor (750/760/860/870), Current profit = $92/$795, +11.54%
- Trade-2 Dow Double Diagonal (closed put diagonal, left with call diagonal 50/55), Current profit =$22/$485, +4.5%
- Trade-3 SPY Iron Condor (1:1 risk reward), closed with loss =$43/$108, -39.8%
- Trade-3 OIH Double Calendar (150/155), and adjustment 160, Current profit =$207/$1585, +13.0%
Overall gains/loss : $92+$22-$43+$207=$278
Total Investment/Margin = $795+$485-$108 (freed after closing SPY IC)+$1585=$2757/ Portfolio spread
ROM : $278/$2757 i.e. 10% on overall portfolio
The above results are excluding speculative intradays trades like ESRX, WFR, etc. Even though gains are substantial, I don’t include those as that is not my key strategy and involves a very small part of my overall portfolio. Majority of my money is invested in income trades and almost in the same ratio as mentioned above.
Profitable trading, OptionPundit