Weekly Trade Summary: December 03 - December 09

This week I entered one new BWB on the 28-Feb expiration, and adjusted three existing trades. I also made one mistake on 07-Dec in adjusting a monthly 16-Feb expiration trade...I accidentally used weekly options instead of monthly options. I had to reverse that trade for a $14 loss. Details of this week's trading below:

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Trade #48:  January 19 Monthly Expiration BWB - Adjusted 07-Dec

• 03-November Entry (post)
• 03-November Adjustment (post)
• 27-November Adjustment (post)
• 07-December Adjustment

Trade #49:  January 31 Weekly Expiration BWB - Adjusted 07-Dec

• 14-November Entry (post)
• 27-November Adjustment (post)
• 28-November Adjustment (post)
• 07-December Adjustment

Trade #52:  February 16 Monthly Expiration BWB - Adjusted 08-Dec

• 28-November Entry (post)
• 08-December Adjustment

Trade #53:  February 28 Weekly Expiration BWB - Entered 07-Dec, Adjusted 08-Dec

• 07-December Entry
• 08-December Adjustment

I currently have 6 open trades, with expirations in Dec (2), Jan (2), and Feb (2):

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Total defined risk for these trades is at 86.8% of the account net liquidation value.

47 trades have been closed this year, with 29 wins and 18 losses. Return on the account/portfolio for the year is at 4.8%.  Total win rate is at 62% including hedges. The win rate on the core trades is at 71%, and getting closer to the historical win rate. Still not happy with the core trade win rate, but at least it is improving and the losses have been small.

Of the 6 open trades, 5 currently have a positive P&L. The trade with negative P&L was entered last week:

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Regarding the one losing trade (trade #52), the decay of its options are a bit odd. Trade #52 is displaying decay behavior that is completely different than the typical decay of my BWB trades. The images below are from my active trade monitoring spreadsheet and show the decay of the options in % terms, by strike, for trades #49, #52, and #53.

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Typically, the lower long decays faster than the upper long, but this is not happening with trade #49...hence the decay line is sloping the opposite direction from my typical trades.

Next week I will keep an eye out for new trades in the weekly February 9 and February 23 expirations. I will make adjustments in my existing trades as follows:

• Highly Likely: #48
• Likely: 
• Possible: #52, #53
• Unlikely: #46, #47, #49

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