Friday 29 November 2013

Weekly Option Trading

In September, I began selling weekly puts on Exxon-Mobil Corp XOM and McDonald's Corp MCD to provide additional account activity. I understand this strategy will not create huge amounts of wealth. I view my weekly put selling as somewhat of a hobby; likely producing a small steady income with minimal risk.

I plan to consistently roll my options for a credit to generate income. My total weekly gains are included in my blog posts of monthly account activity.

My trading summary is reported in US dollars minus commissions:

MacDonald's Corp (MCD)

09/16 Sold 2 Sept 27 $97 puts    $83.50
09/27 Bought to close                -$32.49
09/27 Sold 2 Oct 4 $97 puts      $107.50
10/03 Bought to close               -$472.49
10/03 Sold 2 Oct 25 $97 puts    $547.50
10/24 Bought to close              -$472.49
10/24 Sold 2 Nov 22 $97 puts   $519.50
11/22 Expired worthless

     Total:            $324.03


Exxon-Mobil Corp (XOM)

09/19 Sold 3 Sept 27 $90 puts   $256.25
09/26 Bought to close               -$853.74
09/26 Sold 3 Oct 19 $90 puts     $892.24
10/11 Bought to close             -$1,093.74
10/11 Sold 3 Nov 1 $90 puts    $1,096.24
11/01 Bought to close                -$238.74
11/01 Sold 3 Nov 8 $90 puts       $466.25
11/08 Expired worthless
11/11 Sold 3 Nov 29 $90 puts        $82.25
11/25 Sold 3 Dec 6 $92 puts          $31.25
11/29 Expired worthless

     Total                $638.26

Total Weekly Option Income:    $962.29

2 comments:

  1. Hi, I just discovered this blog and have a question:

    In your weekly options trading, is there any point at which you would exit the position early?

    Regards,

    boersianer

    ReplyDelete
    Replies
    1. Hi Boersianer,

      Thanks for your comments.

      When I exit a position, I try to roll it to a future expiration for a credit.

      If I were to exit early, it would likely be the result of a personal situation, rather than a market condition. For instance, when I work night shifts, go on a vacation, or encounter other circumstances that would not provide me with an opportunity to close my trade on the day of expiration.

      Delete

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