Can you believe it? We are already completed 1/3 of the year 2023!
At the point of writing, it is now 1 May 23 - so as usual, it is time to take stock of how much cash flow we have collected in Apr 23.
In the month of Apr'23, I collected a total of $920.00 (these are all closed trades, so its all realised profits here).
Here's a snapshot of the trades which were closed.
Reflection
I closed a total of 3 trades in the month of Apr'23 and all was profitable. The number of trades are lesser due to earnings season.
As always, I like to think back and see what I could have done well and continue to duplicate this success. Hopefully, if you are reading this, you gain some insights from my sharing as well.
What Works Well
In this month, I implemented the "double-support strategy".
For those who are in the Options Mastery Course - I taught the concept that your sell strike has to be below a support line.
I took that concept further, and created the "double-support strategy" where the sell strike has to be below TWO support lines.
Take MCHP for example.
Entry of MCHP Bull Put Spread on 27 Mar 23
On 27 Mar 23, I sold a BPS on MCHP:
- Sold put option @ 70
- But put option @ 65
This gave me a net collection of $0.80.
Notice at the point of entry, I sold it close to the first support @ $79.05 shown by the green lines.
Now remember that support lines define the region where the price is likely due for reversal.
I spotted another support at $71.41.
Both of these support prices $79.05 and $71.41 are below my sell strike price at $70.
This means that even if it does break through the support at $79.05, I have another layer of protection at $71.41.
Exit of MCHP Bull Put Spread on 1 Apr 23
The green arrow represents when I sold the Bull Put Spread. As you can see, I sold it very close to the support at $79.05. This increased the likelihood of the stock price reversing.
On 28 Mar 23 - it broke through the support. Typically, I would have closed the position and moved on to this next trade as this signify a possible change of down trend.
But I didn't - because I knew I had another second layer of support at $71.41.
Indeed, the price reversed, and I eventually took profit three days later (as shown in the blue arrow). This gave me a profit of $320.
The same concept was applied to EMR and TGT as well. This helped me to net a total of $920 in this month.
Conclusion
I find it worthwhile to always review your trades on a monthly basis - so that I can keep discovering patterns that works well and keep doing it.
Success leave clues. Do more of what works for you and eventually that positive results compound into something larger.
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