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Wednesday, June 20, 2018

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.

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One of my favorite (and most successful) options strategies is put-selling.


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





SPX credit call spread (options)

Wed. 6/20/2018 (9:42:13 am, PT)

sell -2 June 20, 2018  2775 calls at $1.95

  • probability ITM:  37% (a bit high, but acceptable)
  • I already had two long calls ("wings") (June 22  2845 calls) that were purchased for $0.30 on June 15 
  • margin:  $14,000
  • expiration:  1:00 pm (PT), June 20 (same day)


Wed. 6/20/2018 (11:57:19 am, PT)

buy back both short calls (2775 strike) at $0.10 to remove the risk

PROFIT:  $370 (in 2.25 hours)

Learn to SELL call options HERE




Monday, June 11, 2018

SPX credit put spread (options)

Mon. 6/11/2018 (9:35:09 am, PT)

sell -2  June 11, 2018  2785 puts at $1.20 (29 delta)
buy +2 June 11, 2018  2760 puts at $0.05

  • net credit (max profit):  $1.15 x 2 x 100 =  $230
  • margin:  $5000
  • options expire at 1:00 pm (PT)


Mon. 6/11/2018 (12:06:40 pm, PT)

buy back both short puts (2785 strike) at $0.50
let long puts (2760 strike) expire worthless ($10 "sacrifice" to create spread)

PROFIT:  $130

COMMENT:  
It's a GOOD thing I bought back my short puts at $0.50 because SPX closed at 2782 and my short puts would have ended up in-the-money!!  😨

LEARN TO SELL PUT OPTIONS HERE!



Wednesday, May 30, 2018

SPX credit put spread (options)

Wed. 5/30/2018 (9:42:23 am, PT)

sell -2  May 30, 2018  2710 puts at $0.85
buy +2  May 30, 2018  2690 puts at $0.10

  • intraday stochastics:  oversold
  • margin:  $4,000
  • net credit (max profit):  $0.75 x 2 x 100 =  $150
  • short put (2710) delta:  14.50
  • expiration:  1 pm (PT)


Wed. 5/30/2018 [12:07 pm (PT) and 12:17:53 pm (PT)]

  • bought back short puts at $0.05 to remove the risk
  • let long puts (2690) expire at 1 pm (PT)
  • SPX closed at 2724.01


PROFIT:  $140 (in about 2.5 hours)
ROC:  3.40% (in about 2.5 hours)

Learn to SELL puts HERE!


Friday, May 25, 2018

SPX short call option

Fri. 5/25/2018 (expiration)

sold -1 May 25, 2018  2720 call at $1.10

 W A R N I N G 

SPX closed at 2721.33 at 1 pm (PT) today (5/25), so my short call was only $1.33 in-the-money.  However, right before the closing bell, the "bid" was $1.85 and the "ask" was a whopping $2.90!!!!  UNBELIEVABLE!!!

So .... instead of taking a larger-than-necessary loss by buying back my ITM short call, I simply let the option expire in-the-money (pretty unnerving, I must admit).

Since I collected $1.10 when I sold (to open) the call and it ended up $1.33 ITM, my loss will be around $23 rather than $180 (if I had bought back the call).


The trading rules for "index" options (SPX, RUT, VIX, etc) and the trading rules for "equity" options (SPY, IWM, etc.) are VERY DIFFERENT.  Please make sure you thoroughly understand these rules before trading with real money.


Free stock photo of hand, wristwatch, time, watch

Monday, May 21, 2018

SPX credit call spread (options)

Monday, 5/21/2018 (9:12:23 am, PT)

buy +4 May 21, 2018  2755 calls at $0.05
sell -4 May 21, 2018  2735 calls at $2.00 (28 delta)

net credit (max profit):  $1.95 x 4 x 100 =  $780
expiration:  1 pm (PT)


Monday, 5/21/2018 (12:33 pm, PT)

buy back short calls (2735) at $0.10 to remove the risk
let long calls (2755) expire

PROFIT:  $740 (in 3.5 hours) 😀



Image result for candy



Procter Gamble (PG) Put Options

Tue. 5/1/2018 (12:23:35 pm, PT)

sell -1 June 15, 2018  $70 put at $0.73

  • stochastics: oversold
  • 52-week low:  $71.92
  • probability ITM at exp:  32.27%
  • max profit:  $0.73 x 1 x 100 = $73


Mon. 5/21/2018 (12:45:13 pm, PT)

buy back put at $0.16

PROFIT:  $57

Comments:

I originally intended to own PG stock at $70/share (i.e., I was OK with assignment), which is the reason I chose the strike price of $70.  After 21 days, however, I was able to close my option trade at a profit, so I changed my mind about the possibility of getting assigned at $70.


Image result for pg logo

Coca Cola (KO) Put Options

Thu. 5/3/2018 (11:23:32 am, PT)

sold -1 June 8, 2018  $41 put at $0.46

  • stochastics: oversold
  • probability ITM at expiration:  36%
  • max profit:  $0.46 x 1 x 100 = $46
  • days 'til expiration:  36


Mon. 5/21/2018 (12:44:22 pm, PT)

buy back put at $0.10

PROFIT:  $36

Comments:

I initially intended to take assignment at $41 on June 8.  However, 18 days later, I was able to buy back my put at only 10 cents and close my trade for a profit, so that's what I did.


Image result for coke polar bear

Friday, May 18, 2018

SPX credit call spread

Friday, 5/18/2018 (9:52:12 am, PT)

buy +4 May 18, 2018  2740 calls at $0.10 (debit)
sell -4 May 18, 2018  2720 calls at $1.40 (credit)

  • stochastics:  overbought region
  • expiration:  1:00 pm (PT)
  • net credit (max profit):  $520
  • margin:  $8000
  • delta of short call (2720):  30


Friday, 5/18/2018 (12:48:20 pm, PT)

buy back short calls (2720) at $0.05 to remove the risk

Comments:

  • my closing order at $0.05 FINALLY filled at 12:48:20 pm (darn market makers!)
  • let the long calls (2740) expire
  • SPX closed at 2712.97


PROFIT:  $500 (in 3 hours)





Wednesday, May 16, 2018

SPX credit call spread

Wednesday, 5/16/2018 (10:01:20 am, PT)

buy +4 May 16, 2018  2745 calls at $0.10 (debit)
sell -4 May 16, 2018  2730 calls at $1.50 (credit)
  • expiration at 1 pm (PT)
  • short call (2730) delta:  29.42
  • net credit (max profit):  $1.40 x 400 = $560
  • margin:  $6000
  • stochastics: overbought region

Wednesday, 5/16/2018 (12:11:40 pm, PT)

  • buy back short calls (2730) at $0.10 to remove the risk
  • let long calls (2745) expire ($40 sacrifice)


PROFIT:  $520 (in 2 hours, 10 minutes)  😀

Learn to SELL CALL OPTIONS HERE!




Monday, May 14, 2018

SPX credit call spread

Monday, 5/14/2018 (10:11:44 am, PT)

buy +3 May 14, 2018  2750 calls at $0.05
sell -3 May 14, 2018  2735 calls at $1.55

  • net credit (max profit):  $1.50 x 300 =  $450
  • stochastics in overbought region
  • short (2735) call delta:  30
  • margin:  $4500
  • 3 hours left until expiration


Monday, 5/14/2018 (12:39:57 pm, PT)

buy back all short (2735) calls at $0.10 to remove the risk
let long (2750) calls expire

PROFIT:  $420 (in 2.5 hours)
return on capital:  9.33% (in 2.5 hours)






SPX credit call spread

Monday, 5/14/2018 (10:17:15 am, PT) FP

buy +3 May 14, 2018  2745 calls at $0.13
sell -3 May 14, 2018  2740 calls at $0.48

  • net credit (max profit):  $0.35 x 300 = $105
  • delta for short (2740) call:  13
  • margin:  $1500 
  • expiration:  1:00 pm, PT


Monday, 5/14/2018 (12:32:10 pm, PT)

buy back all short (2740) calls at $0.05 to remove the risk
let long (2745) calls expire worthless

PROFIT:  $90.00
Return on capital:  6% (in almost 3 hours)




Friday, May 11, 2018

SPX Credit Call Spread

Friday, 5/11/2018 (9:51:41 am, PT)

buy +2 May 11, 2018  2750 calls at $0.10
sell -2 May 11, 2018  2725 calls at $3.40

  • net credit (max profit):  $3.30 x 200 =  $660
  • margin:  $5000
  • delta of short calls (2725):  48.63 (risky!!)
  • stochastics:  overbought
  • expiration:  1 pm (PT)


Friday, 5/11/2018 (12:57:50 pm, PT)

  • buy back short calls (2725) at $0.60
  • let long calls (2750) expire


PROFIT:  $540 (in 3 hours)


COMMENTS:

It's a good thing I bought back those short calls at $0.60 because they would have ended up ITM at 1 pm (expiration)!!!!

SPX closed at 2727.72 at expiration.

When you're trading short options, it's REALLY important to watch the charts carefully so you can make informed decisions.  Do NOT hold your short options until the last minute if it looks like they may end up ITM.  Just spend some money and buy back your short options!!






SPX Credit Call Spread

Friday, 5/11/2018 (9:55 am, PT) FP

buy +2  May 11, 2018  2750 calls 
sell -2  May 11, 2018  2730 calls

  • net credit (max profit):  $1.35 x 200 =  $270
  • 3 hours left until expiration
  • short call (2730) delta =  25.57
  • margin requirement:  $4,000


Friday, 5/11/2018 (12:45:26 pm, PT)

buy back both short calls (2730) at $0.20 to remove the risk
let long (2750) calls expire worthless

PROFIT:  $230 (in 3 hours)
Return on capital:  5.75% (in 3 hours)




Wednesday, May 9, 2018

SPX credit call spread

Wed. 5/9/2018 (10:41:02 am, PT)

buy +3 May 9 2018  2720 calls at $0.10
sell -3 May 9 2018  2705 calls at $1.20

  • net credit (max profit):  $1.10 x 3 x 100 =  $330
  • short call (2705) delta:  23
  • expiration:  1 pm (PT)
  • margin:  $4500


Wed. 5/9/2018 (12:38:07 pm, PT)

buy back short calls (2705) at $0.05 to remove the risk

PROFIT:  $315



SPX Credit Call Spreads

Wednesday, 5/9/2018 (11:43:25 am, PT) FP

buy +3 May 9, 2018  2715 calls at $0.13
sell -3 May 9, 2018  2705 calls at $1.08

  • net credit (max profit):  $0.95 x 300 = $285
  • short call (2705) delta:  23.25
  • margin requirement:  $3,000
  • 1 hour, 15 minutes left until expiration


Wednesday, 5/9/2018 (12:38:07 pm, PT)

buy back all short (2705) calls at $0.05 to remove the risk
let long (2715) calls expire worthless

PROFIT:  $270 (in 1 hour)
Return on capital:  9% (in 1 hour)






Friday, May 4, 2018

SPX CREDIT PUT SPREAD

Friday, 5/4/2018 (9:52:06 am, PT)

sell to open -2 May 4, 2018  2650 puts at $2.15
buy to open +2 May 4, 2018  2605 puts at $0.10

Facts:

  • credit:  $2.05 = $410 max profit
  • delta for short put:  28.42 (> 70% chance of success)
  • margin requirement:  $9000
  • expiration day:  May 4 (same day)


Why did I place this trade?

  • SPX was trending up in the morning (strong trend)
  • this is a same-day trade to take advantage of theta time decay



Friday, 5/4/2018 (12:41:37 pm, PT)

buy to close short puts at $0.05
let long puts expire worthless (sacrifice of $20)

Note:  SPX closed at 2663.42

TOTAL PROFIT:  $400 (in 3 hours)  .....  4.40% ROC





LEARN TO SELL PUT OPTIONS

Wednesday, May 2, 2018

SPX credit call spread

Wed. 5/2/2018 (10:20:03 am, PT)

buy +1 May 2, 2018  2685 call at $0.12
sell -1 May 2, 2018  2665 call at $1.37

  • stochastics:  overbought
  • FOMC conference call at 11 am (PT)
  • expiration:  1 pm (PT)
  • net credit (max profit):  $1.25 x 1 x 100 =  $125
  • delta of short call (2665):  19
  • margin:  $2000


Wed. 5/2/2018 (12:03:50 pm, PT)

  • buy back short call (2665) at $0.05
  • let long call (2685) expire


PROFIT:  $120

Learn to SELL call options here

Image result for ice cream




Friday, April 13, 2018

RUT index short put options

Monday, 4/9/2018 (9:30:02 am, PT)

sell -2 April 13, 2018  1455 puts at $0.95

probability of success:  95%


Tuesday, 4/10/2018 (11:53 am, PT)

buy back puts at $0.50

PROFIT:  $90


Image result for ice cream

SPX short strangle

Fri. 4/13/2018 (9:22:31 am, PT)

sell -1 April 13, 2018  2670 call at $3.00 (33 delta)
sell -1 April 13, 2018  2650 put at $2.20 (21 delta)

net credit (max profit):  $5.20 x 1 x 100 =  $520
expiration:  1 pm (PT)

Fri. 4/13/2018 (12:11:36 pm, PT)

buy back call at $0.05

Fri. 4/13/2018 (12:58:56 pm, PT)

buy back put at $0.05

PROFIT:  $510


Image result for ice cream