Monday, December 23, 2013

Last trade in December

My last live trade in December.

As you can see from the chart as at 30-Nov, it is clearly a uptrend.  A good last swing low will be at about 1650.  But the premium is too low to sell the credit put spread.  After going through different strikes, I selected 1760/1750 put spread, with USD 625 (after commission 596.60) premium.

This is the Order Preview.  Initial/Maintenance Margin is 4,388/3,511.  Return On Margin (ROM) is 14.24%/17.80% (13.59%/16.99% after comission) for 20 days.

This is the trade transaction.

This is the chart as at 20-Dec.  ES once droped to a low of 1760.25, just 1 tick above my Short Strike.  With Bernanke's tapering announcement of reducing bond buying by $10 billion a month and keeping interest rate as it is (not raising the interest rates until 2015 at the earliest), ES rallied to close at 1810.75.  The next two days ES Dec future contract stayed about the same level and end at 1812.89.
Thus, the option expired worthless.

This the trade for expiration (no commission).

With this, my total December income is USD 1,610.09 (596.60+1,013.49 posted here), met my monthly income goal as described in my Trading Plan.  This Trading Plan is still work in progress.  I will update it as I learn through reading, trading.

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