What a busy morning!
I closed out all 4 expiring options trades and one stock trade that hit its expiration (RY). I then bought two stocks, an option, and a futures position.
My winning streak came to an end. I took a loss on the PPG option and the ANTM option. Overall I had a net profit from my options positions this week though, which was nice.
Here are some fun recent stats:
18-2 record in my last 20 trades. 13-0 in my last 13 stock trades.
For those following my options trades, I want to point out that I was able to extract at least the intrinsic value from each option position. In fact, I was able to extract more in three of the four cases. That's exciting because when I did my financial modeling that tied potential options trade outcomes to my stock research, I made the assumption that I would only be able to extract the intrinsic value out of the option when selling it. But today with 3 out of 4 options trades, I was able to extract more.
For the futures position, I made the trade 30 minutes before the US stock market open. Out of my 16 futures trading strategies, this is the only one that can fire in the morning like this (all the others fire at the open of the futures market in the afternoon). This particular MES trade by the way is based on the "monthly options" expiration week. For stocks that have monthly options, they are expiring next week. And back tests show that over the long term, if you bought and held the market that week each month (which the MES "S&P 500" futures allow us to do), you may have generated a decent profit. I took it one step further and added a filter that the prior week of price activity needs to have less volatility than the that of the last two months. So I'm looking for the monthly options expiration week trade only if recent price volatility has quieted down.