Friday, March 26, 2021

Expiration Report for Fri 03/26/21

The following Cash Secured Put (CSP) positions were closed this week. All prices include TD commissions.

Stock Opened Closed Days Shrs Strikes ProbOTM Margin P/L ROI AROI
DIA 3/11/2021 3/23/2021 12 100 $309.00 86% $30,900.00 $106.47 0.34% 10.48%
IWM 3/12/2021 3/26/2021 14 100 $217.00 85% $21,700.00 $135.48 0.62% 16.28%
IWM 3/11/2021 3/26/2021 15 100 $212.00 89% $21,200.00 $100.47 0.47% 11.53%
QQQ 3/11/2021 3/26/2021 15 100 $298.00 83% $29,800.00 $213.47 0.72% 17.43%
QQQ 3/11/2021 3/24/2021 13 100 $287.00 91% $28,700.00 $103.47 0.36% 10.12%
SPY 3/11/2021 3/25/2021 14 100 $376.00 82% $37,600.00 $173.47 0.46% 12.03%
SPY 3/11/2021 3/24/2021 13 100 $367.00 90% $36,700.00 $103.47 0.28% 7.92%

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

Stock Opened ExpDate Days Shrs Strikes ProbOTM Margin P/L ROI AROI
IWM 3/26/2021 4/9/2021 14 100 $205.00 83% $20,500.00 $145.48 0.71% 18.50%
IWM 3/26/2021 4/9/2021 14 100 $202.00 87% $20,200.00 $106.48 0.53% 13.74%
QQQ 3/26/2021 4/9/2021 14 100 $293.00 88% $29,300.00 $107.48 0.37% 9.56%
SPY 3/26/2021 4/9/2021 14 100 $380.00 82% $38,000.00 $146.48 0.39% 10.05%
SPY 3/26/2021 4/9/2021 14 100 $376.00 86% $37,600.00 $109.48 0.29% 7.59%
XLI 3/26/2021 4/9/2021 14 100 $93.00 84% $9,300.00 $40.48 0.44% 11.35%
XLK 3/26/2021 4/9/2021 14 100 $124.00 86% $12,400.00 $51.48 0.42% 10.82%
XLV 3/26/2021 4/9/2021 14 100 $113.00 83% $11,300.00 $31.48 0.28% 7.26%

Friday, March 19, 2021

Expiration Report for Fri 03/19/21

The following Cash Secured Put (CSP) positions were closed this week. All prices include TD commissions.

Stock Opened Closed Days Shrs Strikes ProbOTM Margin P/L ROI AROI
QQQ 3/5/2021 3/17/2021 12 100 $290.00 82% $29,000.00 $232.47 0.80% 24.38%
QQQ 3/5/2021 3/16/2021 11 100 $280.00 90% $28,000.00 $122.47 0.44% 14.51%
SPY 3/5/2021 3/17/2021 12 100 $360.00 86% $36,000.00 $158.47 0.44% 13.39%
SPY 3/5/2021 3/16/2021 11 100 $355.00 89% $35,500.00 $119.47 0.34% 11.17%

Wednesday, March 17, 2021

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

Stock Opened ExpDate Days Shrs Strikes ProbOTM Margin P/L ROI AROI
DIA 3/17/2021 4/1/2021 15 100 $318.00 84% $31,800.00 $116.48 0.37% 8.91%
IWM 3/17/2021 4/1/2021 15 100 $214.00 88% $21,400.00 $108.48 0.51% 12.33%
QQQ 3/17/2021 4/1/2021 15 100 $295.00 90% $29,500.00 $109.48 0.37% 9.03%
SPY 3/17/2021 4/1/2021 15 100 $383.00 81% $38,300.00 $167.48 0.44% 10.64%

Friday, March 12, 2021

Expiration Report for Fri 03/12/21

The following Cash Secured Put (CSP) positions were closed this week. All prices include TD commissions.

Stock Opened Closed Days Shrs Strikes ProbOTM Margin P/L ROI AROI
IWM 2/26/2021 3/10/2021 12 100 $199.00 89% $19,900.00 $108.47 0.55% 16.58%
IWM 3/5/2021 3/12/2021 7 100 $195.00 91% $19,500.00 $80.47 0.41% 21.52%
QQQ 2/26/2021 3/11/2021 13 100 $295.00 82% $29,500.00 $188.47 0.64% 17.94%
QQQ 2/26/2021 3/11/2021 13 100 $285.00 91% $28,500.00 $104.47 0.37% 10.29%
SPY 2/26/2021 3/10/2021 12 100 $362.00 82% $36,200.00 $183.47 0.51% 15.42%
SPY 2/26/2021 3/10/2021 12 100 $350.00 91% $35,000.00 $102.47 0.29% 8.91%

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

Stock Opened ExpDate Days Shrs Strikes ProbOTM Margin P/L ROI AROI
IWM 3/12/2021 3/26/2021 14 100 $217.00 85% $21,700.00 $135.48 0.62% 16.28%

Thursday, March 11, 2021

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

Stock Opened ExpDate Days Shrs Strikes ProbOTM Margin P/L ROI AROI
DIA 3/11/2021 3/26/2021 15 100 $309.00 86% $30,900.00 $109.48 0.35% 8.62%
IWM 3/11/2021 3/26/2021 15 100 $212.00 89% $21,200.00 $103.48 0.49% 11.88%
QQQ 3/11/2021 3/26/2021 15 100 $298.00 83% $29,800.00 $216.48 0.73% 17.68%
QQQ 3/11/2021 3/26/2021 15 100 $287.00 91% $28,700.00 $106.48 0.37% 9.03%
SPY 3/11/2021 3/26/2021 15 100 $376.00 82% $37,600.00 $176.48 0.47% 11.42%
SPY 3/11/2021 3/26/2021 15 100 $367.00 90% $36,700.00 $106.48 0.29% 7.06%

Saturday, March 6, 2021

Cash Secured Put ETF Trading Plan

INVESTMENT OBJECTIVE

The primary objective is to generate monthly income with a high probability of success.

INVESTMENT STRATEGY

The sell out-of-the-money (OTM) Cash Secured Puts (CSP) on Exchange Traded Funds (ETF's) with an 80% and/or 90% probability of expiring OTM.

EXCHANGE TRADED fUNDS

The main ETF's traded will be DIA, IWM, QQQ, & SPY, which are index funds that represent that overall market, and ARKK, which is an actively managed fund that represents innovative technology companies.

POSITION SIZING

Positions will be established at 1 contract (i.e. 100 shares) per underlying per strike. For each ETF, up to 2 puts will be sold at different strikes/probabilities.

TRADE SETUP

Before entering a trade, use Ichimoku Cloud to determine the trend and the support levels. Preferably the trend should be neutral to up. Key indicators of an uptrend:

  • The cloud is Green (Senkou Span A > Senkou Span B).
  • The stock price is above the cloud .
  • The Base Line (Kijun-sen) is above the cloud.
  • The Lagging Span (Chikou Span) is above the cloud.

Support is at the top and bottom of the cloud. So look for strikes in that range.

ENTRY STRATEGY

Every week, enter positions with expiration within 14-18 days. This is a continuous strategy with options expiring every week at different strikes.

Sell an OTM Put with a delta of 20 (80% Probability OTM) and/or sell an OTM Put with a delta of 10 (90% Probability OTM). Ideally the strikes should be at support levels at or below the cloud.

MANAGEMENT/EXIT STRATEGY

At or before expiration, close each position when it can be bought back for $.05 or less to take off the risk and margin requirement.

As soon as the positions are closed, enter a new position for the next 14-18 days.

If the stock price reaches or breaches the strike, consider rolling out, and down if possible, for a net credit to avoid assignment.

If assigned early, then sell Covered Calls at or above the assigned strike. However, the goal is to avoid assignment by closely monitoring the positions and rolling when the strikes have been breached.

Expiration Report for Fri 03/05/21

The following Cash Secured Put (CSP) positions were closed this week. All prices include TD commissions.

The QQQ Mar 5th $314 CSP was rolled down and out to the Apr 9th $300 CSP for a $78 net credit when the $314 strike was breached this week.

Stock Opened Closed Days Shrs Strikes ProbOTM Margin P/L ROI AROI
IWM 2/19/2021 3/5/2021 14 100 $210.00 83% $21,000.00 $150.47 0.72% 18.68%
IWM 2/19/2021 3/5/2021 14 100 $205.00 89% $20,500.00 $98.47 0.48% 12.52%
QQQ 2/19/2021 3/5/2021 14 100 $305.00 90% $30,500.00 $100.47 0.33% 8.59%
SPY 2/19/2021 3/5/2021 14 100 $375.00 81% $37,500.00 $174.47 0.47% 12.13%
SPY 2/19/2021 3/5/2021 14 100 $366.00 89% $36,600.00 $105.47 0.29% 7.51%

Friday, March 5, 2021

New Trades

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

Stock Opened ExpDate Days Shrs Strikes ProbOTM Margin P/L ROI AROI
IWM 3/5/2021 3/19/2021 14 100 $195.00 91% $19,500.00 $83.48 0.43% 11.16%
QQQ 3/5/2021 3/19/2021 14 100 $290.00 82% $29,000.00 $235.48 0.81% 21.17%
QQQ 3/5/2021 3/19/2021 14 100 $280.00 90% $28,000.00 $125.48 0.45% 11.68%
SPY 3/5/2021 3/19/2021 14 100 $360.00 86% $36,000.00 $161.48 0.45% 11.69%
SPY 3/5/2021 3/19/2021 14 100 $355.00 89% $35,500.00 $122.48 0.35% 9.00%