ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Option Trading and Record Keeping - How its done

Updated on March 25, 2015

Record Keeping and Option Trading

What is the best reason to keep good records of all trades when you trade stock and options like I do all day? The reasoning is, if you don't record all your trades how can you ever know how you are really doing per day, per stock, per month?

I keep careful records of my trading using no less than 3 methods. The first is using a spreadsheet for all current holdings. Method 2 is another spreadsheet which acts as a database to keep a record of all my monthly expenses and the 3rd method is the most important and I use MS Access to keep a database record of all trades. Using MS Access I can calculate using SQL (structured query language) totals for all profits and losses for all stocks and and period of time. This also allows me to calculate the totals of all the fees I incur using my discount broker for any period of time.



Database Calculations for Option Trading

Using a database is a perfect way of recording each stock or option trade. I have columns in the table that represent the number of contracts for each option trade and one contract represents 100 shares of stock. A calculation for any option trade would be (100*price*contract) - Trade fee. SQL (Structured Query Language) has allowed me to get a snapshot at any point of time to tell me how I am doing per day, month, year and for any specific stock or option trade type.

There is really no way to know how you are really doing unless you keep careful trading records. This is the main reason why I do this and over time I am turning option trading into a real profession and ultimately a business.






Rolling Options

One of my other strategies with options is to roll them out to a later date once I have made a good profit, generally about 100 dollars. This way I can lock in some gains as I buy them back and then sell them again at a higher strike price or a later month. I do this for both the PUTS and CALLS that I sell.


I also do this in reverse with PUTS, when I ROLL down the PUTS I have bought for insurance to protect my downside and I sure did this in a big way in October 2015 because of the market insanity over the EBOLA crisis and then again during the big drop in OIL and GAS stocks. All this is part of the BULL PUT CREDIT strategy I have been using almost exclusively during the last two years. It has not been easy to say the least.

During the times when I get a stock PUT to me at a higher price I have just sold the stock and then rolled out a new PUT option and in some cases I can generate more income and offset the loss of the stock. This does not happen in ever case however. I definitely prefer SELLING PUTS as opposed to selling covered calls against stocks.


Option Trading Poll

What are the most difficult challenges of option trading?

See results

Handling the tough times in the stock market

Option Trading is a tough profession. There are times where the stock market or the movement of an individual stock makes no sense at all. A great example of this was last October 2014 when the Ebola virus destroyed the stock market and created a major correction, all because of the irrational fear that the exposure of this virus to two people at a hospital in Houston was going to mean that the whole world was going to die of Ebola. As an option trader I was able to make many profits all the way down with many of my PUT options that I bought as insurance to protect myself from this very contingency. For the most part this worked out, but the overall value of my account was hurt by the massive downturn.

This happened again a few months later after the Ebola crisis abated with the Oil and Gas stocks went down in a huge way. Once again I made money on the downside, selling for profits and then re-buying PUTS all the way down. The volatility of this stock market has been at times very difficult during the last 6 months after I reached the peak of the overall value of my brokerage account.

Option Trading is in fact a profession, but its also a very challenging profession. It takes a great deal of skill and courage at times and most of all accurate record keeping.



Trade Architect

Option Trading Top 7 Principles

Understanding Options

41 Million in Option Trading Profits

Jordan Belfort

Why most people are broke.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://corp.maven.io/privacy-policy

Show Details
Necessary
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
Features
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)