Options traders in December were laughing like this kid all the way to the bank! Well maybe not really. No retirement plans just yet. After a bit of a dry spell I closed 2 put credit spread trades (see table below).
|Ticker||Type||Spread||Expire Date||Open Date||Closed Date||Open Credit||Closed Debit||Profit / Loss|
|SPY||PUT||245 / 247||12/29/17||11/14/2017||12/08/2017||$0.21||$0.03||9%|
|SPY||PUT||246 / 248||12/29/17||11/13/2017||12/08/2017||$0.21||$0.03||9%|
This month is a good example of why you never second guess your strategy. You will notice I put on 2 spreads a day apart with nearly the same strikes prices and the same expiration. Some might see this as too much risk. My strategy is based on the fact that around 11% of my trades will loss money. I never know which 11% so I just place trades if there are trades to be had. Never second guess. Build a strategy, backtest it, monitor it, and only make lasting changes to your strategy (no one off, second guessing, changes).