[Options] May Positions Review

Sean McLaughlin
May 1, 2020

As May gets under way, it’s time to review positions with May options that remain open (haven’t already hit profit targets or been stopped out).

Most trades I put on for All Star Options tend to have a minimum duration of 30 days (short premium plays) and often as long as 6-8 months (for long premium plays). As options approach expiration, greeks like theta and gamma start to become my enemy and whipsaw my P/L. Therefore, as options and spreads get into the expiration month, my best practice is to put each position on notice — it’s time to take action.

However, this month is a little unique -- all of our positions with May options have already closed! No surprise considering we put on a lot of shorter duration short premium places coming out of the corona virus bottom and they quickly met their profit targets as vol collapsed or one way markets took us out at stop losses.

Here's the scoreboard:

May positions closed for profits: $BYND (closed half on 1/8, 2nd half on 4/23), $DOCU (3/31), $AMD (4/7), $XLI (4/6), $XLU (4/21), $XLF (4/22), $GLD (4/17)

May positions closed at a loss: $SPY (closed winning partials 4/2, 4/3, closed rest for a loss 4/28), $XLI (4/29), $IWM (4/30)

Stay healthy!

 

~ @chicagosean

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