My gains from trading February options were 3.59 percent of my January portfolio value. Profits were higher because I traded much more aggressively than usual when the market was weak with short positions, bearish spreads, and naked calls. I reduced bearish trades as the market rallied and maintained a good portion of the profits made.
My big mistake over the past month was exiting positions in utility companies too aggressively. I had been holding losing positions for months and saw the rally as a chance to exit. The rally continued high enough that I regretted not staying along for the ride longer. However, I have not made big commitments to utilities for March, at least not yet.
I bought puts at 104 and sold three times as many puts at 101 in IWM. My thought is that I can hedge if IWM falls through 101. The ideal development would be to fall to 101, making the puts I own valuable, but not beginning to erode profits by penetrating 101.
I took losses on several share positions.
ETR moved above 65 today, so I bought shares to cover the Feb 65 calls. Soon afterwards, ETR began to fall.
I sold DWX puts I was long to deconstruct a bear spread. I decided to take the risk with Feb 47 puts I am short.
FE appeared likely to exceed 32, so I repurchased Feb 32 calls at a small profit.
I closed my position in ETR at one of the worst prices of the day. Utilities began to rally as soon as I closed. I did capture the dividend, however.
I decided to close the top of a February SPY spread while prices were good. Maybe I should have kept the puts I owned, but I was in a closing mood.
I went crazy and shorted TLT again. I had a daily signal. Unfortunately, the daily signal is not confirmed by the weekly and TLT rose throughout the day. Hmm.
I closed shorts spreads in KIE and KRE, reducing projected profits slightly. I took action both to preserve profits and to eliminate rental fees for hard to borrow shares. I am reporting the net gains rather than reporting the details.
Three short call positions closed in the money on Friday, making me short the shares today. I sold all three positions, two with profits and one with a loss.
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