What a week!
Total gain on the week was 28.7 points ($1435) – see the image below for the summary. Due to the rapid move up it took me four rolls up in price to get my calls to expire out of the money. This is not something that I like to do often as it increases risk considerably as I add contracts – I was short 15 call contracts on Friday that expired worthless.
I had some losers mixed in with the winners, but overall I came out ahead. Keeping in mind that I sold the initial strangle for 25 points ($1250) it took several transactions to get to a 28.7 point gain on the week. One thing I could have done better would have been to sell puts with each roll, which I only did at the end of the week. The put sales would have helped offset further moves against my call sales, and I would have been able to sell less calls as I rolled up. I could have done a better job of taking early losses on my initial call sales and resold later after the price had settled. I would have ended up selling far fewer calls in the end and still had a winning week. Let’s see if I can build on these points this week.