Mar 2019 – MAR 2020
TAX YEAR 2020
My personal 25K Options Trading Challenge which I started in 2019 is now complete.
Disclaimer: The content of this blog is for informational and educational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible.
Beginning NET LIQ (Mar 2019)
$2,500
Current NET LIQ (Feb 2020)
$26,656
FINAL TARGET
$25,000
The 2019 options trading challenge is complete.
I started with an initial sum of $2500 in March 2019. I am hovering around $26,656 as of 02/19/2020.
Unfortunately, the site wasn’t ready earlier, so I started documenting my trades right in the middle of the challenge when the net liq of my account was around $9,000. But I decided to keep the these trades free and open to the general public so you can follow along as I near the finish line of $25k.
All late Jan and February trades have worked out like a charm and it seems like this will be the final round of trades which will take us to our $25K target. Once we achieve our target, this challenge will be closed. The next challenge will start approximately towards March/April time frame. Stay tuned...
FEB 2020
Feb 2020: TSLA $690- $700 Bull Call Spread
Feb 2020: TSLA $690 – $700 Bull Call Spread. TSLA shot up 40% in 2 days and was the talk of the town for the last few days. Since, I missed the initial up-move, I was waiting for a pullback. And we got a nice pullback today morning. I was able to get in and buy a $690-$700 Bull Call Spread. I am risking $500 to make $500 on this trade.
Feb 2020: RUT $1615- $1635 Bull Call Spread
Feb 2020: RUT $1615 – $1635 Bull Call Spread. With earnings season in full swing and the stellar earnings being announced left and right, the stock market kept going higher and higer. However, the coronavirus scare caused a sudden pullback and DOW dropped 700 points in a day!!! We used this opportunity to put on a trade in an the small cap index RUT.
Feb 2020: AMZN $2000- $2030 Bull Call Spread
Feb 2020: AMZN $2000- $2030 Bull Call Spread. After announcing blow out earnings, AMZN rocketd to $2050, however DOW dropped 700 points the next few days due to coronavirus scare, taking AMZN down with it. This is a post earnings continuation trade where I am giving myself 45 days to be right.
Feb 2020: BKNG $1845- $1885 Bull Call Spread
Feb 2020: BKNG $1845- $1885 Bull Call Spread. This trade goes in conjunction with a Bull Call Spread I bought just a few days ago. DOW crashed 700 points due to the coronavirus scare after that. Since my rationale is the same, I am adding on to my position here.
Feb 2020: FB $200- $210 Bull Call Spread
Feb 2020: FB $200- $210 Bull Call Spread. FB annouced earnings and beat analysts estimates yesterday. However, the market had a knee jerk reaction and the stock tanked 7%. This is a mean reversion trade aiming for a recovery from the exaggerated pull back. This trade is me doubling up on a previous trade I put on in Jan as my rational remains unchanged.
JANUARY 2020
Jan 2020: BKNG $1900 – $1915 Bull Call Spread
Jan 2020: Documenting this trade today which I executed on 1/28. BKNG $1900- $1915 Bull Call Spread. With the ongoing Coronavirus scare, travel stocks like BKNG have been pulling back. With all our indicators indicating that this might be the end of the pullback, I am testing the waters with a $1900 – $1915 Bull Call Spread.
Jan 2020: FB $205- $215 Bull Call Spread
Jan 2020: FB $205- $215 Bull Call Spread. FB annouced earnings and beat analysts estimates yesterday. However, the market had a knee jerk reaction and the stock tanked 7%. This is a mean reversion trade aiming for a recovery from the exaggerated pull back.
Jan 2020: AAPL $320- $325 Bull Call Spread
Jan 2020: AAPL $320- $325 Bull Call Spread. AAPL annouced earnings and beat analysts estimates 2 days ago. The stock initially soared to $328 but then pulled back today. I used this opportunity to put on a Bull Call Spread betting on AAPL going back up.
Jan 2020: BKNG $1875- $1895 Bull Call Spread
Jan 2020: BKNG $1875- $1895 Bull Call Spread. The market had its worst down day since October. Although, our technical signals haven’t caught up yet, sometimes experience helps out here. BKNG has been pulled back way too much for no foundational reason. This is a great time for a mean reversion trade.
DECEMBER 2019
Dec 2019 – NFLX $315-$300 Put Debit Spread
This is another revenge trade like TSLA which bit me back. I had put on a trade earlier on12/03 which initially went my way but turned against me. For some reason I put on this trade on 12/17 in order to “average down” or double my position because I had become so convinced that I was right.
Dec 2019 – TSLA $430-$415 Put Debit Spread
I am reflecting back on this trade I did in late December. If you look at the chart and indicators, you will come back at me asking me why in the world did I take this trade? Read till the end to find out more.
Dec 2019: BKNG $2067- $2037 Bear Put Spread
Dec 2019: BKNG $2067-$2037 Bear Put Spread. With the market on a tear, BKNG has been making new highs day after day. Finally on 12/30 we see a red candle showing signs of a possible exhaustion.
Dec 2019: AMZN $1895- $1865 Bear Put Spread
Dec 2019: AMZN $1895-$1865 Bear Put Spread. With the market on a tear and AMZN breaking some crazy holiday records, the stock shot up 9.5% in a day. The next day we see a Doji candle pointing towards a possible trade.
NOVEMBER 2019
Nov 2019: AMZN $1820- $1800 Bear Put Spread
The markets have been roaring higher and higher for 6 weeks and all stocks in my watchlist are over-extended to the upside. AMZN was beaten down for many days but then bounced right back up piercing the upper Bollinger Band. ADX however is not supporting this sudden upward price movement and is showing weakness. We paid $870 for this put spread and hope to double our money in the next 30 days.
Nov 2019 – TSLA $347-$337 Put Debit Spread
With earnings behind us on 10/23, TSLA shot up to the moon. I put on an earlier $320 – $310 Debit Put Spread trade for a short 17 days to see if TSLA gives up some of those gains and normalizes a little. The trade went in my favor immediately, however, after the “China Deal”, the market kept roaring higher and TSLA reversed and just kept going against me. My directional bias hasn’t changed at all and I still think the market is overdue for a correction. Hence this new trade. A TSLA $342 – $332 Put Debit Spread for $465. My directional bias is based on my simple trading principles and I always stick to it. Sometimes, I lose money on my trades, but that is part of the game. The overall goal is to win more than you lose. That is how you come out a winner in this game.
Nov 2019: GOOG $1322 – $1312 Bear Put Spread
We put on a $1300 – $1320 Bear Put spread 3 days ago, however due to the “China Deal” the market went roaring higher, but since our directional bias and analysis hasn’t changed, I used this opportunity to put on another Bear Put Spread in GOOG.
Nov 2019: AAPL $260- $250 Bear Put Spread
On Nov 6th, we put on an AAPL $257-$247 Bear Put Spread because all our indicators were pointing to an imminent market pullback. But after the “China Deal”, the market kept roaring higher and higher. Since, our directional bias and analysis hasn’t changed, I used this opportunity to put on a new Bear Put Spread.
Nov 2019: AMZN $1800- $1790 Bear Put Spread
On Nov 6th 2019, we put on this AMZN $1800-$1790 Bear Put Spread. Even though, AMZN is range-bound, we did this trade to spread out our risk.
Nov 2019: GOOG $1300 – $1290 Bear Put Spread
With stock market ripping upwards and making new all time highs for days, every stock in my watchlist is shooting to the moon. With earnings in the past, the market is due for a correction, and I bought a $1300 – $1290 Bear Put Spread for my mean reversion trade.
Nov 2019: AAPL $257- $247 Bear Put Spread
With stock market ripping upwards and making new all time highs for days, every stock in my watchlist is shooting to the moon. Although, AAPL earnings were great, it is way past that point for the stock to keep going up. The market is due for a correction, and I bought a $257 – $247 Bear Put Spread for my mean reversion trade.
OCTOBER 2019
Oct 2019: GOOG $1180 – $1200 Bull Call Spread
Oct 2019: GOOG $1180-$1200 Bull Call Spread. GOOG suddenly dropped for no real reason, although most of our indicators haven’t caught up, but following a limited universe of stocks allows me to see these opportunities the moment they pop up on my screen.
Oct 2019 – TSLA $320-$310 Put Debit Spread
With earnings behind us on 10/23, TSLA shot up to the moon. Trying this trade for a short 17 days to see if TSLA gives up some of those gains and normalizes a little. We bought a TSLA $320 – $310 debit Put spread for $438. If TSLA stays at or below $310 in the next 17 days, we will double our money.
SEPTEMBER 2019
Sep 2019: AMZN $1725- $1750 Bull Call Spread
Sep 2019: AMZN $1725-$1750 Bull Call Spread. Amzn is mostly range bound is bouncing back and forth between the Keltner Channels. Trying out this bull call spread and will likely close it as soon as I see any decent profit.
Sept 2019: GOOG $1220- $1230 Bull Call Spread
Sep 2019: GOOG $1220-$1230 Bull Call Spread. During september, the market is mostly range bound and not giving many trading opportunities. You will notice most of trades appear unusual and I am trying to make some money by trading the tight range.
Sep 2019: AMZN $1735- $1755 Bull Call Spread
Sep 2019: AMZN $1735-$1755 Bull Call Spread. Amzn is mostly range bound is bouncing back and forth between the Keltner Channels. Trying out this bull call spread and will likely close it as soon as I see any decent profit.
AUGUST 2019
Sep 2019: AMZN $1725- $1750 Bull Call Spread
Sep 2019: AMZN $1725-$1750 Bull Call Spread. Amzn is mostly range bound is bouncing back and forth between the Keltner Channels. Trying out this bull call spread and will likely close it as soon as I see any decent profit.
Sept 2019: GOOG $1220- $1230 Bull Call Spread
Sep 2019: GOOG $1220-$1230 Bull Call Spread. During september, the market is mostly range bound and not giving many trading opportunities. You will notice most of trades appear unusual and I am trying to make some money by trading the tight range.
Sep 2019: AMZN $1735- $1755 Bull Call Spread
Sep 2019: AMZN $1735-$1755 Bull Call Spread. Amzn is mostly range bound is bouncing back and forth between the Keltner Channels. Trying out this bull call spread and will likely close it as soon as I see any decent profit.
Aug 2019: AAPL $195 – $205 Bull Call Spread
With the whole market under pressure for the previous week, Apple got dragged down along with the market. All our indicators are finally pointing to the first signs of recovery. With 45 days remaining, we buy a $195 – $205 Bull Call Spread for $468. If AAPL expires above $205, I will double my money in 45 days or less.
Aug 2019: FB $185-$195 Call Spread
After the whole market had been under pressure for a week, this was the first day where the 3 indices were showing signs of recover. FB also showed us a nice green candle after being in oversold territory. If this trade goes our way, we stand to make $500 in 38 days.
Aug 2019: GOOG $1165 – $1185 Call Spread
Same time frame as the AMZN trade earlier. Earnings were over and GOOG is showing the first hint of recovery after an extended short term downtrend. Look at the chart for some signs of recovery (I explain how to read all these in my book). At this point, I put on a $1165 – $1185 call spread with 45 days to expiration. It cost me $1040 approx to put on this trade. The goal is for GOOG to recover and stay above $1185 and I will double my money. Note, GOOG can go up $50 in a single day, and we are only asking for a $15 move in the next 45 days.
AUG 2019: AMZN $1780 – $1800 CALL SPREAD
Earnings were over and AMZN was under pressure for some time. Finally on 8/6 the stock begins to show first signs of recovery from being oversold. Look at the chart for some signs of recovery (I explain how to read all these in my book). At this point, I put on a $1780 – $1800 call spread with 45 days to expiration. It cost me $1000 approx to put on this ttrade. The goal is that If AMZN recovers and just stays at or above $1800, I will double my money. Earnings were over and AMZN was under pressure for some time. Finally on 8/6 the stock begins to show first signs of recovery from being oversold. Look at the chart for some signs of recovery (I explain how to read all these in my book). At this point, I put on a $1780 – $1800 call spread with 45 days to expiration. It cost me $1000 approx to put on this ttrade. The goal is that If AMZN recovers and just stays at or above $1800, I will double my money
