May Portfolio Income Report

May was very good for our members! I tried to make the theme of the May portfolio “trade what you see, not what you want to see.” I thought it was fitting because I’ve been burned before on the Call side anticipating moves lower in the market. Not this month – we had a very Put heavy portfolio across the board.

As you can see below the calm market really didn’t leave us room to enter an Iron Condor trade this month. I’m of the opinion that sometimes taking a big fat 0% return is much better than trying to force a trade into the market that doesn’t make sense right? That’s when you really lose your capital fast.

Credit Spread Strategy: 3.89%

To re-cap this month’s income, let’s look at what we made in premium vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

SPX 1,175/1,170 PUT SPREAD – $30/$470 = 6.38% Return

RUT 700/690 PUT SPREAD – $25/$975 = 2.57% Return

SPX 1,180/1,175 PUT SPREAD – $35/$970 = 3.61% Return

With regard to TOTAL INCOME and RETURN, the portfolio produced $90 of income after investing just $2,415 in margin. That means we saw a total portfolio return of 3.89% this month based on our model allocation.

Naked Puts/Calls Strategy: 1.51%

To re-cap this month’s income, let’s look at what we made in premium vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

IWM 67 PUT – $15/$670 = 2.24% Return

SPY 115 PUT – $20/$1,153 = 1.73% Return

DIA 105 PUT – $12/$1,051 = 1.14% Return

SPY 112 PUT – $16/$1,120 = 1.43% Return

With regard to TOTAL INCOME and RETURN, the portfolio produced $63 of income after investing just $3,994 in margin. That means we saw a total portfolio return of 1.51% this month based on our model portfolio.

Iron Condors Strategy: 0.00%

To re-cap this month’s income, let’s look at what we made in premium vs. our required investments (in margin). Here are the positions we had with corresponding PROFIT/INVESTMENT and RETURN:

–NO POSITIONS THIS MONTH–

With regard to TOTAL INCOME and RETURN, the portfolio produced $0 of income. That means we saw a total portfolio return of 0.00% this month based on our model portfolio.