Market Conditions: As expected interest rates stayed rangebound and did not rise.
Rule Check: Was the trade closed according to the plan? Yes📝
Live Trade Log
Daily updates and management actions.
Feb 20th: Winner, Winner. 0.85% ROI. The $86 Put option will expire worthless and in full profit this evening. There is nothing to do here. The option will simply disappear from our account tomorrow and the full profit will be realised in our cash account.
Feb 19th: Up 0.85%. No action required. This trade will expire tomorrow in full profit.
Feb 18th: Up 0.84%. No action required. This trade expires on Friday 20th. We will make full profit!
Feb 17th: up 0.85%. No action required.
Feb 14th: Up 0.84%. No action required.
Feb 13th: Up 0.82%. No action required.
Feb 12th: Up 0.80%. No action required.
Feb 11th: Up 0.79%. No action required
Feb 10th: No Action required
Feb 9th: No action required.
Feb 7th: No action required.
Feb 6th: No action required. Trade going as planned.
Feb 5th: No action required.
Feb 4th: No action required.
Feb 3rd: Price action remains stable; letting time decay (theta) work. No action required.
Jan 30: 🔵 Holding: Currently up 0.33%. Price action remains stable; letting time decay (theta) work. No action required.
Jan 29: Up 0.42%. Holding for expiry.
Jan 26: Up 0.59%. Trade performing as expected.
Jan 22: Strong initial rally! Up 0.3% in the first 24 hours. Maintaining for the full 30-day yield.
Jan 21 (Entry): Sold $86 Put @ $0.85. Initial Margin: ~$1,600.
⚙️ Strategy & Original Setup
This strategy is return-based with unlimited risk, relying on margin - Traditional Options on IBKR. See video below of trade explanation. Watch from about 1 minute 50 seconds into this video.
I. Setup & Rationale
Trade Date: Jan 21st 2026
Underlying Ticker: TLT - US 20 year treasury yield tracker
TLT Price at time of trade: $86.75
Market Outlook: Strong Bullish/Neutral - A significant drop is not expected.
Goal of Trade: Maximum Premium Income / Return on Margin (RoM)
Probability of Profit (PoP): 71% (this is the main attraction of the strategy)
II. The Trade Details
Action: Sell to Open (STO) 1 Naked Put Option
Strike Price: $86
Expiration Date (DTE): Feb 20th 2026
Premium Collected: $0.85 per share
Total Premium Collected per contract: $85
III. Risk & Profit Metrics
Maximum Profit: (The credit collected) $857
Breakeven Price: $85.15 (We need the stock price to remain above to price at EXPIRATION to make a profit)
Initial Margin Required: $1,600 (But this depends on numerous factors such as your account size and other positions in your account).
Potential Loss: unlimited...losses continue to increase as the share price falls further below break even.
IV. Trade Management & Exit Plan
Take Profit: Leave expire worthless.
Trade Mgt (Critical): None. Happy to take assignment of TLT if this occurs as it pays an annual dividend of just under 4%. Our plan will be to sell the ETF if the share price reaches $90 again after assignment.
📞 Strategy Call Assistance
If you require assistance with trade setup, risk management, or strategy review, please schedule a strategy call.
PREMIUM Plan Members: Strategy calls are included in your plan.
All Other Members: Strategy calls can be scheduled at a rate of €100 per half hour.
