June 2022 Options Trading Summary | $1014

June options trading update

I earned $1,014.18 trading options in June. Not a great month, but better than May when I lost money. 😅

The difference this time is I made more conservative trades than before. I chose high probability outcomes even though the rewards are smaller. I also sold more spreads than usual to protect my downside.

 

A couple of option positions expired in the money and were assigned.

  • Meta (META) 100 shares at $160/share.
  • Etsy (ETSY) 100 shares at $130/share.

 

Detailed transactions here.

 

New Learnings

  • The market can go against you very abruptly.
    There was a huge stock market rally on June 24. But then things turned ugly again and by June 28 the market was back down again overall. Stocks are so volatile right now it’s easy to lose a lot of money trading options if you’re not careful.
  • No stock is safe in a bear market.
    Cash generating machines can have their valuations compressed because a slowing economy sinks all boats. This means high quality companies that normally trade at a premium like Google and Meta could see their stock prices fall more than you would expect.
  • The market operates in cycles.
    Energy stocks held up well in the first half of the year. But it looks like they are faltering too now. This could be a good time to sell oil and buy growth.

 

 

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Random Useless Fact:

The largest fish species alive today is the whale shark, growing up to 12 meters or 39 feet long.

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AnotherLoonie
07/08/2022 5:03 pm

Not a bad month income-wise! Not too sure about Etsy though. My wife loves them but I can’t imagine their business growing very much.. only so many people want to order hand-made trinkets online.

Options
Options
07/10/2022 4:14 pm

coinbase +9K an the total P&L is only +1k, that’s weird

Options
Options
07/11/2022 3:30 am

Thank you for your answer 🙂 Keep up with the good work, it’s impressive 🙂 One more question, for the Puts that you sell, do you post collateral? How does it work with IB? My discount broker requires a 30% minimum collateral(in a margin account) if I sell a put. How does it work with IB?