IB Account up $32,611 or 9.9% in December, 2020 finished up $163,989 or 83.7%.

December was a good month generating capping off a great year. I wish the account had a history of performing at that level but that would not be factual. Historically a return of 2% per month was the target. Some months we met the goal, some months we missed. In 2020 the combination Covid and politics created an environment that was very conducive to covered calls and high premiums. It is highly unlikely the return of 80%+ will be repeated in 2021….but one can always hope.

December 2020 ….a month to remember!

We outperformed the SPX by a wide margin (87% vs 16%). Key to the performance was selling most of our positions in early March as news of Covid created uncertainty. This gave us cash to fully invest in April after the crash and participate in the rally. As the say…….Good to be Lucky…..Lucky to be Good.

Covid created an environment that freed up much more time to spend on investing. In the past I would spend about 10 hours a week trading. Now I spend five or six times that…..and probably over trade. Optionsbistro.com has been a fantastic resource for both trade ideas and learning.

Hope some of my experiences and sharing of strategy/trades has helped you make a higher return in 2020. Look forward to the start of a new trading year on Monday!

Assigned on EW Covered Call, Profit of $3,498 in 63 Days, ROI of 8.8% or 51% Annualized

On October 26 we established a covered call on EW. Over the next 63 days we rolled the calls on a weekly basis. We also tried buying buying “insurance puts” in late November. On Friday we were “rolling up” a lot of our covered call positions which requires incremental cash. To avoid increasing the margin in the account we decided to let the EW shares get called away. Not sure it is a good time to shut down the position as the graph shows the upward trend in net profitability over the past couple of weeks.

Table below shows the activity with the stock and the options over the past 63 days.

Happy with the return on the position…..I do believe EW is a medical device stock to hold for the long term……so might consider another position in the near future.