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Weekly Update on May’07 Income Trades – Portfolio up 10%

Published on April 27, 2007

Weekly Update on May’07 Income Trades – Portfolio up 10%

April 27, 2007

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 the 2nd weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here.

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

3 Comments

  • Avatar OptionPundit says:

    Couple of updates to these trades:

    Trade-1 (RUT Iron condor). I closed my BPS leg of the IC by bying it back for $0.20/spread. Than reduced my overall credit on this IC from 2.05 to 1.85. Now I am left with only May 860/870 call. Rut is currently at 814.57. 93% of chances that this leg will expire worthless.

    Trade-4 OIH Portfolio : This really tested the mettle yesterday. Firstly it moved to as high as $161.50 trigering my adjustment point of $161. I bot May/Jun 165 call calendar for $2.30 as I needed posisitve delta to ride on the uptrend. I also rolled-up May 150 put to June for $1.30 credit.

    HOWEVER, soonafter lunch OIH started to fall, and fall rapidly. As soon as it was below $158 that triggered another adjustment, I sold May/June $165 call for $1.90/spread.

    These OIH adjustments resulted in net credit = $1.30+$1.90-$2.30=$0.90/spread. So my current investment in OIH now stands at $1585-$90=$1495

    Profitable trading, OptionPundit

  • […] Here is the 3rd weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here and here. […]

  • […] Here is the 4th weekly update on my income portfolio that I shared earlier. The original post can be found here and the previous week’s update and adjustments can be found here, here and here. […]

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