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2022 Q1 Trades
I'm starting a topic: Q1 2022 trades, just a little bit early.
Just a reminder: Dec 24 is a trading holiday, so we have to roll our CBOE put options on Dec 23 with the Dec 27 expiration. Despite the 4-day gap, I'm still targeting my regular weekend premium of around 0.95-1.00 premium, i.e., $95-$100 premium per $187,500 in portfolio equity.
Thanks for the heads up. Have you considered whether it is worth it to trade via an LLC, and potentially make an S-Corp election? Looking at making these changes for the new year. For a recently formed LLC, S-Corp election needs to be made by March 15th to apply for 2022 tax year.
Interactive Brokers has a process to convert an individual account to an LLC - https://ibkr.info/article/3322
I set my holiday strikes even a bit lower than a usual weekend given the low short term vol and big up moves on the market the last two days. I’m down in the $0.7-$0.8 range instead of my typical $1-$1.1.
I just saw your latest article (Nov) on the put selling strategy and a backtest by Spintwig.
Are you familiar with his S1 signal service? Seems like that backtest would have been a goo place for a plug for him and potentially higher returns based on only taking trades (or shorting higher delta puts) when his signal shows the environment is providing higher probabilities.
Since jan 1st, I lost 6 months of premium. I am shaken.
Last year I had multiple small loses and I was ok with them.
Is it a sign I am doing something very wrong? I remember you keep about 50% of the premium / year (on average) but is there rime or reason to the magnitude and frequency of hits?
I find it difficult to be in the catch up position, to sell my puts for the next 6 months just to be at 0.