Here are the trades that I put on and closed in 2012. I closed a total of 11 trades of which 7 were profitable and 4 lost money. Notice that even though I only had 7 winners and 4 losers the portfolio made money. That's the benefit of money management and good exit rules.
|1/13/2012||Put Credit Spread (DIA)||$78||$110||I entered this put spread with the idea of possibly adding a call spread to it. Overall the strategy worked very well.|
|2/21/2012||Iron Condor (SPY)||$174||$198||Closed call side of the
spread for $.12 (instead of $.19). Put side is closed now for a nice
profit on this trade.
|3/5/2012||Call Credit Spread (DIA)||$100||-$8||This one didn't work out but because of my stop loss, I didn't lose too much.|
|3/29/2012||Put Credit Spread (SPY)||$74||-$42||Another one that didn't work out but... guess what? That stop loss saved me from a larger loss again.|
|5/22/2012||Put Credit Spread (SPY)||$70||-$62||Once again, a volatile market forced me to exit this trade.|
|6/7/2012||Iron Condor (DIA)||$186||$156||This trade turned out mostly as expected. The trade was managed by closing early and locking in profit.|
|7/30/2012||Put Credit Spread (SPY)||$73||$74|| This trade again went
as expected but took a little longer to develop. That's because I sold
options with more than 30 days to expiration.
||Call Credit Spread ($1 wide)
||This was a pairs trade with the
$2 spread to determine which did better.
Spread ($2 wide)
||Which trade did better? Depends
on the commission you pay. In my case, when you count commissions, the
basically performed the same.
|10/05/2012||Iron Condor (DIA)||$165||-$326||The trade didn't quite work out as planned, nor did the adjustment.|
|12/03/2012||Iron Condor (SPY)||$189||$114||This trade was successful but only because I elected to close the trade early.|
For trades entered and closed in 2011, check here.
While the point of these trade tutorials isn't necessarily to have each one turn into a winner, it's still nice to be able to track the result over time. While I've summarized the trades above, I want to provide a portfolio summary much like we would if we had a trade log. After all, it isn't really about how many winners or losers there are but what the equity curve looks like. The table below will show the cumulative result of closed trades. Note: This includes open debit orders so the balance may seem off sometimes.
|Starting Date||Starting Balance||Current Balance||Cumulative Gain/Loss||% Portfolio Gain||% Gain/Month|
As I continue to put on trades, how do I choose new strategies to trade? One way is through taking more of a portfolio management view. Check out this video to see an example of portfolio management in action.