Sunday, June 1, 2025

Open Contract Positions at the End of May 2025: A Deep Dive Into Active Options Management

 As May 2025 comes to a close, it’s time to review the open contract positions in this My managed options portfolio. Below, you’ll find a comprehensive breakdown of each open trade, with a special focus on net effective premiums, capital at risk, and the impact of rolling strategies. This transparent snapshot not only highlights the current state of the portfolio but also demonstrates best practices for tracking true P&L in options trading.


Portfolio Overview: Open Positions as of May 31, 2025




Net Premium and P&L: The Real Story

Net Premium Calculation:
For rolled positions (highlighted in yellow in your table), the net premium reflects all previous gains/losses. For example:

  • TSLL 6/20/2025 Call $9.70: Rolled for a net premium of $309 (after a $2,650 loss on the previous contract).

  • HOOD 6/6/2025 Call $55.00: Rolled, net premium is $192.

  • NVDA 8/15/2025 Call $125.00: Rolled, net premium is $365.

  • SMCX 6/20/2025 Put $40.00: Rolled, net premium is $214.87.

  • SMCI 6/20/2025 Put $46.00: Net effective premium is $242.

Total Net Premium (Unrealized P&L):
Adding up all net effective premiums (including unrolled positions at face value), your portfolio’s current unrealized P&L stands at $4,245.13.


Capital at Risk

Each contract’s “executed value” (e.g., $4,000 for a $40 put) is the notional amount you may need to provide if assigned. This is your real collateral requirement and a critical risk metric.


Key Takeaways and Best Practices

  • Track Net, Not Gross, Premium:
    Real P&L is the net premium after rolls, not just what you collected on the latest trade.

  • Monitor Assignment Risk:
    Several positions are near the money, especially in TSLL, SMCX, and SMCI. Ready to manage or roll again as expiration nears.


Conclusion

This portfolio consists of 17 open short options contracts with a total premium received of $4245 , and $138,450.00 in total collateral tied up.

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