Day 34 - End of Week 7

The market moved sideways today, but both SPY and QQQ inched up by nearly half percent.

Trading Update

Sold a META Put Credit Spread today.

• Strike Price: $540 / $530
• 16 Delta
• Expires 4/17
• Received $139 Premium

Unlike yesterday, when I split the $1000 I wanted to risk on QQQ Spread and I had executed 2 $500 trades, in this instance, I just went wider.

Here is what I thought was the rationale.

My reasoning for the difference is that when either security falls, the rate of fall for an index would in all probability be slower than that of an individual security.

In other words, the time it would take for QQQ to fall by $5 is likely going to be longer than it would take META to fall $5.

And so if I would need to manage when the trade goes against me, this kind of setup would hopefully give me roughly equal kind of time to manage either.

But then I realized - I had already executed the trade. And all of my thoughts were post-action rationalization. If this rationale seems foolish, aha! Magic trick revealed! Welcome to Foolish Trader if you have come here for the first time.

Portfolio Status

Down 1.24% today.

Considering that the market only inched forward a little bit, this is not too bad yet. And since I have chosen an expiry for most trades that is over 40 DTE, I think there is enough time to see the trades go right.

Here is the portfolio status.

Trade History

Here are the last 20 trades I made.

Plan for Next Week

This week I slowly kept increasing the extent to which my cash was deployed since volatility/VIX kept increasing. And now I have no more cash to deploy. So unless some trades go green, it is likely that I will need to watch the next week from the sidelines.

Disclaimer - Nothing on this site is financial advice, I aim to entertain!