[Options] September Positions Review

Sean McLaughlin
August 31, 2020

As September gets under way, it’s time to review positions with September 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.

This month, we only have one position with September options remaining on the books. All the rest have already hit their profit targets or stop loss levels. In the scoreboard below I denote the date we exited each position.

Here’s the scoreboard:

September positions closed for profits: $MELI (6/16), $TSLA (6/30), $NFLX (7/10), $GLD (8/26)

September positions closed at a loss: $GDX (3/2), $WMT (6/8)

Remaining Open Positions:

  • $NDAQ Sept 115/130 Bullish Ratio Spread -- Sadly for us, $NDAQ has been basing in this 128-135 area for the past several weeks, which unfortunately corresponds with our "max pain" area at 130 in this position. Now, time is most definitely our enemy here. We'll be exiting this trade today and taking our loss.

 

If you have any questions about these trades, email me here.

~ @chicagosean

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