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November 2014 Trades

Here we explore the put credit spread trades I placed on the SPY durning the month of November 2014. This is my primary trading strategy for monthly income. By trading put credit spreads on the SPY I am typically in a trade for 23 days but no more than 45 days.

TickerTypeSpreadExpire DateOpen DateClosed DateOpen CreditClosed DebitProfit / Loss
SPYPut180 / 17611/22/1410/8/1411/2/14$0.40$0.0310.28%
SPYPut185 / 18712/5/1410/23/201411/9/2014$0.27$0.0313.87%
SPYPut184 / 18611/28/1410/26/1411/6/14$0.19$0.038.84%
SPYPut185 / 18711/28/1410/27/201411/6/2014$0.17$0.037.65%
SPYPut186 / 18812/5/1410/28/201411/10/2014$0.22$0.0310.67%
SPYPut186.5 / 188.512/5/1410/29/201411/16/2014$0.19$0.038.84%

Another successful month. Mostly closing out trades made during the high volatility we saw in October. The trades that we put on in November (which will be reported in December) are taking much longer to close out because volatility has dropped. This month our trades took an average of 15.66 days to close. Our trades next month will take longer because of the low volatility. We made an average profit of 10.03% on our trades this month. Pretty good.

You will notice a trade with a wider spread than normal this month (SPY Put Spread 180 / 176 Nov 22 2014). This was not a wise trade. We took more risk for almost the same return as our normal 2 dollar wide spreads. It took longer to close this trade as well.

In the second half of November volatility was low and the RSI reading as been high we did not place many trades. We need the market to pull back a bit before placing more trades. We might not make many trades in the coming weeks. Only time will tell.

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