The Option Writer

99% boredom vs 1% mega stress

📅 June 2, 2023 edition

Enhancing Business Strategy: Balancing Option Writing with Option Buying

In my world of investing and trading, option selling has always been a 💰profitable and entertaining side pursuit, but day trading is my #1 activity. Until recently, I had kept these two aspects entirely separate. However, something happened that prompted me to take a step further in my approach of experimenting and learning by doing. I made a successful long call over the weekend, and I decided to use a portion of the profit (around 4%) to hedge and close my $1950 call sell.

In hindsight, this decision might not have been necessary, but it still made perfect 😎sense at the time. Why not offset a small percentage of my gains and eliminate the only risky position in play by counterbalancing my selling business with my buying business? This move not only reduced risk but also freed up some capital for potential future deployment under favorable conditions.

This experience has made me more aware of the 🖇️interconnectivity between these two worlds that were once isolated for me. By actively hedging my selling positions whenever feasible, I can further reduce risk and exposure associated with my sales. Ultimately, my goal is to minimize weekly risks to an insignificant level.

📋June 2 Epoch review

As always, very conservative and secure strikes, with the added 🔀twist of the above-mentioned hedging of the 1950 call.

• $2000 CALL

• $1950 CALL (HEDGED)

• $1650 PUT

• $1600 PUT

📋June 9 Epoch plan

Already deployed 75% of capital, and I would like to deploy the remaining on another put (1700 would be awesome!) if the opportunity presents itself. If not, I will be happy with the👍 0.7% already secured and start to look at the June 16 epoch. Slow and steady…

• $2050 CALL

• $2000 CALL

• $1750 PUT

📈📉My results

Average Yield %: 1.73%

Projected APY %: 145%

Growth %: 22%

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Nothing in this newsletter is financial advice. I just share my thoughts and personal experiences on Options and the markets in general

Disclaimer: I utilize AI writing tools to assist me in refining the English language, as English is not my native tongue. While the content is entirely original, the form may contain some AI-driven enhancements.