Systematic Put Write - October 2018

Summary

Yesterday was October Option Expiration day and it is time to review the movements done following our strategy.

Ibex 35 on October 19th 2018 Source Investing

IBEX 35 October Future closed at 8904 points, that is 587 points less (or -6,1%) than the previous month. This drop overwhelms the credit received for selling the 9500 October Put Option plus the credit received before and leaves the strategy at -3,8%.

Movements and results so far

I started on August 22nd 2018 selling a 9500 September 2018 Put with the IBEX at 9540. This value will be used as base value from now on.

Date	Option	Spot	Premium	Profit/Loss	Spot Closed
22/08/2018	Ibex 9500 Sept 2018 Put	9540	129,35€	85,70€	9492
19/09/2018	Ibex 9500 Oct 2018 Put	9492	150,23€	-447,67€	8904
19/10/2018	Ibex 8800 Nov 2018 Put	8904	176,35€	?	?

So, considering this second month, this is the comparison between the strategy and the Ibex 35 index:

Regarding November, I have sold a 8800 Put for 176,35€ (break-even can not be achieved this month):

Base	Put-write value	Total Premium	Breakeven
9540	9180	-183,62	N/A

Portfolio

Currently, the other position open in the portfolio is the ODAX November 2018 10900 - 10500 Put Spread.

Resources

• Opened: ODAX November 2018 Put Spread
• Systematic Put Write - September 2018