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Tuesday, January 22, 2019

Website:  www.moneyandlilia.com


Free options lessons:  Lilia's YouTube Channel

Twitter:  @moneyandlilia




Hi!  Welcome to my blog!

I have posted many of my options trades here so you can study and learn from me.  

You will notice that my trading strategies are relatively simple yet consistently profitable.

I, like many successful options traders, SELL options and GET PAID up front.  The probability of success is much higher when you SELL options.  


Watch my FREE VIDEO with step-by-step instructions on how to SELL put options (31 minutes long).


Click HERE to read testimonials from happy students.

*   *   *   *   *   *   *   *   *   *   *   *   *   *   *   *

If you like to buy stocks and exchange traded funds (ETFs) as long-term investments, you should consider SELLING PUT OPTIONS.  This strategy gives you the opportunity to buy ETFs and stocks at lower prices.


Click HERE to watch a short, 6-minute demonstration of this simple, yet little-known, investing strategy.

SPX options trade: Credit (bear) call spread

Tuesday 1/22/2019 (Expiration Day)

WATCH THE VIDEO HERE!

Trade 1 (10:25:33 am, PT)

sell -2 Jan 22, 2019  2635 calls at $2.00 (29 delta)
buy +2 Jan 22, 2019  2665 calls at $0.05 (cheap wings)

margin:  (2665 - 2635) x 2 x 100 =  $6000
credit (max potential profit):  ($2.00 - $0.05) x 2 x 100 =  $390


Trade 2 (11:54:09 am, PT)

buy back both short calls (2635) at $0.30

PROFIT:  $330 (in 90 minutes)

WATCH THE VIDEO HERE!

Friday, January 18, 2019

Options trades: SPX credit call spreads

Friday 1/18/2019 (Expiration Friday)

WATCH THE VIDEO HERE!


Trade 1 (10:48 am, PT)

sell -2 January 18, 2019  2675 calls at $1.80 (27 delta)
buy +2 January 18, 2019  2705 calls at $0.05 (cheap "wings")


Trade 2 (11:38 am, PT)

buy back the 2 short calls (2675) at $0.60 (take profits & remove the risk)

PROFIT #1:  $230 (in 45 minutes)



Trade 3 (11:55 am, PT)

sell -2 January 18, 2019  2675 calls at $0.80 (17.46 delta)

Comment:  I'm selling (to open) two new calls (same strike) so I don't "waste" my two long calls ("wings") (there's still 1 hour left in the trading session)


Trade 4 (12:49 pm, PT)

buy back the 2 short calls (2675) at $0.10

Comment:  The market makers were "torturing" me by making me wait until 12:49 pm.  They refused to sell me the 2675 calls for $0.10 even though they were pretty far out-of-the-money

PROFIT #2:  $140 (in 55 minutes)

TOTAL PROFIT:  $370

Comments:

  • at 12:52 pm, SPX was at 2663.37 and then staged a sharp reversal (back up)
  • at 1:00 pm, SPX closed at 2670.71
  • I'm VERY glad I bought back my short calls at $0.10 because that late-afternoon reversal would have completely stressed me out

WATCH THE VIDEO HERE!

Wednesday, January 16, 2019

SPX call options trade

Wednesday 1/16/2019 (Expiration Wednesday)

Trade 1 (9:52 am, PT)

sell -1 January 16, 2019  2630 call at $1.00 (16 delta)


Trade 2 (9:58 am, PT)

sell -1 January 16, 2019  2630 call at $1.05 (18 delta)


Trade 3

buy +2 January 16, 2019  2655 calls at $0.10 ("wings")


Trade 4 (12:46 pm, PT)

buy back both short calls (2630 strike) at $0.05 (to take profits & remove the risk)

PROFIT:  $175 

Monday, January 14, 2019

SPX call options trade

Monday, 1/14/2019 (Expiration Monday)

Trade 1 (10:15 am, PT)

sell -2 January 14, 2019  2595 calls at $1.15 (21.86 delta)
buy +2 January 14, 2019  2625 calls at $0.05 ("wings")


Trade 2 (11:46 am, PT)

buy back both short calls (2595 strike) at $0.30 (take profits & remove the risk)

let long calls expire "worthless"

PROFIT:  $160 (in 90 minutes)

SPX closed at 2582.61

WATCH THE VIDEO HERE!

Wednesday, January 9, 2019

Options trades: SPX credit call spreads post-Fed minutes

Wednesday, 1/9/2019 (Expiration Day)

WATCH THE VIDEO HERE!


Trade 1 (11:08:46 am, PT)

sell -2 Jan 9, 2019  2610 calls at $1.25 (14.62 delta)
buy +2 Jan 9, 2019  2640 calls at $0.05 ("wings")

Comments

  • The Federal Reserve released its minutes at 11 am, PT
  • Margin requirements:  (2640 − 2610) x 2 x 100 = $6000

Trade 2 (11:30:07 am, PT)

buy back both short calls (2610 strike) at $0.20 (to remove the risk and take profits)

PROFIT #1 (short calls only):  $210


Trade 3 (11:48:57 am, PT)

sell -2 new calls (2600 strike) at $1.25 (19.18 delta)


Trade 4 (12:30:18 pm, PT)

buy back second set of short calls (2600 strike) at $0.30 (to remove the risk and take profits)

PROFIT #2 (short calls only):  $190

TOTAL PROFIT:  $210 + $190 − $10 (cost of the two long calls) =  $390 (in about 90 minutes)


Comments
  • I waited until after the Fed's minutes to place my first trade (I don't like uncertainty)
  • After I bought back my first set of short calls, I was able to sell another set of calls for an additional credit
  • SPX closed at 2584.96, so my short calls would have been fine in the end.  However, I don't like to take unnecessary risk, so I always buy back my short options before expiration if possible

WATCH THE VIDEO HERE!

Friday, January 4, 2019

SPX short call option

Friday, 1/4/2019 (Expiration Friday)

Trade 1 (11:25:40 am, PT)

sell (to open) -1  Jan 4, 2019  2545 call option at $1.65 (delta 19.25)

Comment:  The markets gapped up right at the opening bell and continued to rise.  It had been a pretty strong "up" day, so I kept my trade small by selling only one contract.  Selling call options is a semi-bearish strategy.


Trade 2 (12:51:07 pm, PT)

buy back call option at $0.05 (to remove the risk and take profits)

Comment:  SPX closed at 2531.94 at 4 pm, ET (up 84.05).

PROFIT:  $160 (in 90 minutes)

LEARN TO SELL CALL OPTIONS HERE!


Wednesday, January 2, 2019

SPX short call options

Wednesday, 1/2/2019 (Expiration Wednesday)

Trade 1 (10:01:05 am, PT)

sell (to open) -2  January 2, 2019  2530 calls at $1.40  (15 delta)

Max potential profit:  $280


Trade 2 (11:59:10 am, PT)

buy (to close) both calls at $0.20 (to remove the risk and take profits)

Note:  SPX closed at 2510.03 at 4 pm, ET

PROFIT:  $240 (in 2 hours)

Learn to SELL CALL OPTIONS here!

Friday, December 21, 2018

SPX index short call options (3 trades)

Friday 12/21/2018 (Expiration Friday)

Trade 1A (9:42:23 am, PT)

sell (to open) -2  Dec 21, 2018  2490 call options at $2.35 (14 delta)


Trade 1B (10:53:08 am, PT)

buy (to close) both of the 2490 call options at $0.90

PROFIT:  $290


Trade 2A (11:40:11 am, PT)

sell (to open) -2  Dec 21, 2018  2460 call options at $1.85 (17 delta)
(notice that the strike price is 30 points lower than in Trade 1)

Trade 2B (12:12:22 pm, PT)

buy (to close) both of the 2460 call options at $0.65

PROFIT:  $240


Trade 3 (12:34:12, pm, PT)

sell (to open) -2  Dec 21, 2018  2435 call options at $2.60 (22 delta)
(notice that the strike price is 25 points lower than in Trade 2)

Note:  
I had submitted a limit order to buy back both of the 2435 calls at $0.05, but my order never filled even though my calls were out-of-the money by $18.  I had never experienced such a thing before.  The "ask" remained at $0.55 all the way until the Closing Bell.  Those market makers missed out on taking my $10 because they got greedy!!

SPX closed at 2416.62 (down 50.80).

TOTAL PROFIT (3 separate trades):  $1050 (in 4 hours)

LEARN TO SELL CALL OPTIONS HERE!

Monday, December 17, 2018

SPX short call options

Monday 12/17/2018 (Expiration Monday)

Trade 1 (9:04:09 am, PT)

sell (to open) -1 Dec 17, 2018  2620 call option at $1.45  (15 delta)

Trade 2 (9:25:29 am, PT)

buy (to close) +1 above call option at $0.45

PROFIT:  $100 (in 21 minutes)


Trade 3 (10:30:59 am, PT)

sell (to open) -1 Dec 17, 2018  2590 call option at $2.25  (18 delta)

Trade 4 (11:52:46 am, PT)

buy (to close) +1 above call option at $0.20

PROFIT:  $205 (in 1 hour, 22 minutes)


Trade 5 (12:36:43 pm, PT)

sell (to open) -1 Dec 17, 2018  2545 call option at $1.95 (30 delta)

Trade 6 (12:49:05 pm, PT)

buy (to close) +1 above call option at $0.40

PROFIT:  $155 (in 13 minutes)


TOTAL PROFIT (selling call options 3 times):   $460


COMMENTS:

  • As SPX started dropping, I would buy back my short calls and sell (to open) new ones that were closer "to the money"


  • Notice that my "deltas" started rising with each subsequent trade (once SPX started dropping, I felt pretty confident that the downward trend would continue at least until 12:50 pm or so)


  • Quite often, after a whole day of selling, the buyers come back in towards the end of the day and push the SPX back up (at 12:49 pm, PT, SPX hit an intraday low of 2530.54 and then reversed back up to close at 2545.94)


  • It's a GOOD thing I bought back my short call (2545 strike) at 12:49 pm because it would have ended up "in-the-money" at the close!

Tuesday, November 27, 2018

TLT ratio put spread (options)

Oct 23, 2018

buy +1 Nov 30, 2018  $114 put option
sell -2 Nov 30, 2018  $113.50 put options

net credit:  $1.05 x 1 x 100 =  $105
maximum potential profit:  $155


Nov 27, 2018

close the trade

PROFIT:  $106

WATCH ALL 4 VIDEOS HERE!

Monday, November 26, 2018

SPX short call options

Monday, 11/26/2018 (Expiration Monday)

Trade 1 (9:11:23 am, PT)

sell (to open) -1 Nov 26, 2018  2670 call option at $3.40    38.67 delta (a bit high)


Trade 2 (9:25:18 am, PT)

buy back short call option at $1.50 

Note:  I decided to close it at around 50% of max profit

PROFIT:   $190 (in 14 minutes)


COMMENTS:

It was very tempting to leave this trade open (until expiration) to get the remaining $150, but it's only 9:25 am and a lot can happen in the next 3.5 hours.

I got 55% of max profit in only 14 minutes, so I'm happy about that.  "Don't get greedy," right?  😉

Learn to SELL OPTIONS HERE.

Monday, November 12, 2018

SPX credit call spread

Monday, 11/12/2018 (Expiration Monday)

12:22:03 pm, PT

buy +1 Nov 12, 2018  2770 call at $0.05 ← "wing"
sell -1 Nov 12, 2018  2750 call at $1.30 ←  22 delta

margin:  $2,000
net credit:  $1.25 x 1 x 100 = $125 (max profit)



1:00 pm, PT

SPX closed at 2726.22
all call options expired "worthless"

PROFIT:  $125 (in 38 minutes)

Learn to SELL call options HERE!


Thursday, October 25, 2018

SPX short call options

Thu. 10/25/2018

Trade 1 (9:38:02 am, PT)  ← SPX around 2698

sell -6 Oct 26, 2018  2715 calls at $11.30 (very nice premium!)

delta:  35.80


Trade 2 (1:01:11 pm, PT)

buy back calls at $10.40 (for a quick profit)

PROFIT:  $540


Comments:

  • SPX continued to rise after I sold (to open) my short call options (bad!)
  • At 11:49 am (2 hours later), SPX hit a high of 2722.33 and my calls were trading at $20.20 (I had a temporary "paper loss" of $5340!)  😖😨
  • At 1:01 pm, PT, I decided to buy back my calls at $10.40 and take a quick profit because I wasn't sure if Amazon's earnings and Alphabet's (Google) earnings were going to be good or bad
  • Amazon's earnings and Google's earnings turned out to be bad, so SPX dropped in the after-hours market 
  • By 1:15 pm, PT, my call options were trading between $5.40 and $6.50 😩
  • The greedy side of my brain wants to say, "I wish I had held my calls longer!"
  • The conservative side of my brain says, "It's a good thing I took my profits because things could have gone the other way."

What would YOU have done in this situation??

Learn to SELL CALL OPTIONS HERE!

Monday, October 8, 2018

SPX credit put spread (options)

Monday 10/8/2018 (Expiration Monday)

Trade 1 (10:21:22 am, PT)  ←  SPX around 2865

sell -6 Oct 8, 2018  2845 puts at $1.00
buy +6 Oct 8, 2018  2815 puts at $0.10

  • net credit:  $0.90 x 6 x 100 =  $540 (max profit)
  • margin:  $18,000


Trade 2 (10:44:15 am, PT)

buy back all 6 short puts (2845) at $0.20 to take profits and remove the risk

PROFIT:  $420 (in 23 minutes!)

WATCH FREE OPTIONS VIDEOS HERE!

Friday, October 5, 2018

SPX credit call spread (options)

Friday 10/5/2018 (Expiration Friday)

Trade 1 (9:53:29 am, PT)

buy +6 Oct 5, 2018  2905 calls at $0.10  ←  cheap wing
sell -6 Oct 5, 2018  2890 calls at $1.40 ←  18 delta

net credit:  $1.30 x 6 x 100 =  $780 (max profit)


Trade 2 (12:57:13 pm, PT)

buy back all 6 short calls (2890) at $0.10 to remove the risk

PROFIT:  $720 (in 3 hours)

WATCH THE VIDEO HERE!

Monday, October 1, 2018

SPX credit call spread (options)

Monday, 10/1/2018 (Expiration Monday)

Trade 1 (10:16:44 am, PT)  ←  SPX between 2928.40 & 2929.20

buy +6 Oct 1, 2018  2950 calls at $0.05  ←  cheap wings
sell -6 Oct 1, 2018  2930 calls at $1.55  

net credit:  $1.50 x 6 x 100 =  $900 (max profit)
buying power reduction:  ($12,000)


Trade 2 (12:26:25 pm, PT)

buy back short calls (2930) at $0.10 to take profits and remove the risk

PROFIT:  $840 (2 hours, 10 minutes)

Learn to SELL credit call spreads here!


Friday, September 28, 2018

SPX credit call spread (options)

Friday, 9/28/2018 (Expiration Friday)

Trade 1 (10:05:47 am, PT)  ←  SPX @ 2914.54

buy +6 Sept 28, 2018  2945 calls at $0.05 ← cheap wings
sell -6 Sept 28, 2018  2920 calls at $1.80  ←  29.70 delta

  • net credit:  $1.75 x 6 x 100 =  $1050 (max profit)
  • buying power reduction:  ($15,000)


Trade 2 (12:52:01 pm, PT)

buy back all 6 short calls (2920) at $0.05 to take profits and remove the risk

PROFIT:  $1020 (3 hours)

Note: SPX closed at 2913.98

Learn to SELL call spreads here!

SPX credit put spread (options)

Friday, 9/28/2018 (Expiration Friday)

Trade 1 (9:00:05 am, PT)  ←  SPX @ 2916.63

sell -4 Sept 28, 2018  2895 puts at $0.70  ←  9 delta (safe)
buy +4 Sept 28, 2018  2850 puts at $0.05 ←  cheap wings

net credit:  ($0.65) (4) (100)  =  $260 (max profit)
buying power reduction:  (2895 − 2850) (4) (100) = ($18,000)


Trade 2 (12:41:34 pm, PT)

buy back all 4 short puts (2895) at $0.05 to take profits and remove the risk

PROFIT:  $240 (3 hours, 41 minutes)

Note:  SPX closed at 2913.98

Learn to SELL put spreads here!


Tuesday, September 25, 2018

SPX options: $1122 profit in 3.5 hours

Monday 9/24/2018 (Expiration Monday)

Trade 1 (9:27:08 am, PT)    SPX @ 2915.81

buy +6 Sept 24, 2018  2935 calls at $0.05 (cheap wings)
sell -6 Sept 24, 2018  2920 calls at $1.25 21 delta

  • net credit:  $1.20 x 6 x 100 =  $720 (max profit)
  • buying power reduction:  $9,000


Trade 2 (12:24:11 pm, PT)    SPX @ 2920

sell -6 Sept 24, 2018  2920 puts at $1.35    50 delta
buy +6 Sept 24, 2018  2910 puts at $0.05 (cheap wings)

  • net credit:  $1.30 x 6 x 100 =  $780 (max profit)
  • buying power reduction:  none


After I added the vertical put spread, I ended up with the following position:
a "short straddle with wings"

long +6 Sept 24, 2018  2935 calls at $0.05
short -6 Sept 24, 2018  2920 calls at $1.25
short -6 Sept 24, 2018  2920 puts at $1.35
long +6 Sept 24, 2018  2910 puts at $0.05


At the Closing Bell .....

SPX closed at 2919.37 ("settlement value")

My entire vertical call spread was fine, but my short puts ended up in-the-money. 😶

CLICK HERE to find out what happened!

PROFIT:  $1122 (in 3.5 hours)