Weekly Newsletter   Challenge account


ROTH strategy success

Account Net-Liq: $19,047.39
SPX value: 3,224.73

I have been trading the strategy I was talking about in my previous entries in my diary in my ROTH account for some time now. I have been accumulating shares of HP until I reached 100 shares, later on, I kept accumulating PPL, and now I am accumulating AT&T (T) shares. I keep selling covered calls and using the proceeds to buy more shares. My HP covered call trade is stalled now a bit. I had to sell CCs below my purchase price and at some point, oil companies started rallying hard and I had to roll my covered calls higher to avoid assignment which would cause selling my shares way below my average cost basis. Not happy but it is what it is. Now the CC is in good shape but my expiration is way away in December 2020. Not much happy either but there is no rush. It would not be good pushing these trades and force them. I am in December, so I have to wait. Period.
My PPL trades are in good shape. I could sell CCs above my purchase price, so I do not have to worry about rolling that much. If the stock rallies high and I can’t roll or would have to roll way away in time, I’d rather sell the shares for a profit and start selling puts to buy back in. But PPL is a slow lazy stock. It doesn’t rally that much and that fast, so, will see.

However, it seems, this account is doing extremely well under this strategy. Yes, there are drawdowns, but overall, the account prospers. It is not a quick-rich scheme, but I am happy with the results.





Leave a Reply

Your email address will not be published. Required fields are marked *