Monday, 19 August 2019

Systematic Put Write - August 2019


Last Friday was August Option Expiration day and it is time to review the movements done following our strategy.

IBEX 35 on August 16th 2019. Source Investing
After a sizable drop, the IBEX 35 index closed at 8635 points, losing 535 points (or -5,83%).

For this month I had sold a 9200 PUT, so the final result after re-buying the sold option is a loss of 390,65€ (or -4,34%).

Considering this, since its inception one year ago, the Put Write Strategy is at -2,7%.

Ugly end for my first year following this strategy. However, I am quite satisfied with it and plan to continue it for another year, profiting from higher volatility levels caused by these drops (second biggest premium has been received for the September Put option). If we keep these levels by the end of the month,  we will be close to break-even while the IBEX stands close to losing 10% from the initial levels.

Let´s take a look to the last month movement and then review the most important parameters of the strategy after this first year.