Weekly Update on May’07 Income Trades – Portfolio up 20%

Though, I have already over achieved my May’s portfolio return objectives (my monthly target is 5%-7% returns) there is only one trade left i.e. OIH and I am expecting my May 160 put to decay rapidly next week and generate more returns. This was another successful month of winning on RUT (over 90% success rate now).

June’07 income trades have already been opened and shared with OP Newsletter subscribers last week. All the three trades are positive (Profit ranging from 1% to 6%). You may join OP Newsletter for less than US$1/day i.e. US$28/month via paypal from the left sidebar.

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.

Here is an update on the income trades that I had opened for May expiration cycle. The returns are as of May 11 closing day.

• Trade-1 RUT Iron Condor (750/760/860/870), Closed for profit = $165/$795, +20.75%. (I closed the Put credit spread/Call credit spread each for $0.20).
• Trade-2 Dow Double Diagonal (closed put diagonal, left with call diagonal 50/55), Current profit =$22/$485, +4.5% (closed the call diagonal for zero cost). Closed.
• Trade-3 SPY Iron Condor (1:1 risk reward), closed with loss =$43/$108, -39.8%. Closed.
• Trade-3 OIH Variable calendars/diagonals Current profit =$363/$1142, +31.79%. Still open.

• OIH since last week, adjustments made are (all these adjustments can be found here):
1. Rolled May/Jun 165 call for for $2.53 credit
2. Rolled May/Jun 155 put for $2.30 credit
3. Total investment change =-$2.53-$2.30= Credit $4.83 vs. last week, Total investment = 16.25-4.83=$11.42 per spread

Overall gains/loss : $165+$22-$43+$363=$507

Total Investment/Margin = $795+$485+$108+$1142=$2530/ Portfolio spread

ROM : $507/$2530 per spread i.e. 20% on overall portfolio

The above results are excluding commisions (my commisions are very low and doesn’t affect results substaintially) and speculative intradays trades like ADP, AAPL, SID, POT, ESRX, WFR, YHOO, 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