Hey Guys,
There weren't any stock trades today because I didn't have enough spare buying power in either the main account or the low-priced account. After some existing positions close then it will free up space to pick up new trades.
I made an MES futures trade (and its corresponding SPXL equivalent trade). I want to point out that this particular trade is noticeably different than my typical stock trades as far as the profit-to-loss ratio. The profit target is way closer than the stoploss. That's by design. This is specifically intended to be a high percentage play. Most times this trade setup may have resulted in victory according to back tests, but when those losses come they're heavy. There are some other MES futures trades that don't have the same profit-to-loss ratios as my stock trades either. Each futures strategy is capitalizing on a different edge and might therefore have different profit-to-loss ratios.
I picked up YNDX options in my extra options account. I still have plenty of buying power in that account despite having 10 open positions. The reason is because options take up so much less buying power than stocks. With my position sizing strategy, I could carry twice as many options positions as I have right now and still have more buying power left.
Yesterday I closed out that boatload of options positions. The toughest trade from that group was BAC (from an emotional perspective). At about 30 minutes before the close, the position was almost double the value of what I paid. Then it took a nosedive going into the close and the price I sold it for had 60% less profit just a half hour later. I still feel good about honoring my trading rules though. Over time those situations typically kind of even out (meaning sometimes the price goes the opposite direction into the close). It can still sting in the moment to see that profit disappear, but my exit was perfectly in line with the back test. So that makes it a lot easier for me to accept.
Overall the week was a little below breakeven for that group of options positions I closed yesterday. Those weeks where a lot of options trades set up can offer really exciting upside potential, but this particular group didn't give us lift off. I have ten options positions still open right now, which is a healthy load, so we have a similar profit/risk potential again this coming week.
If you have any questions or feedback, I'd love to hear from you.