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Friday, October 19, 2012

Apple Oct $560 Put Option

9/27/2012

sell to open 10 Oct. 2012 $560 put options @ $1.06  (5% prob. of exp. ITM)


10/19/2012

AAPL closed at $609.84, so my put options expired perfectly


Net gain:  $1052 (in 22 days)

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Apple Oct 2012 590/500 Put Spread (OPTIONS)

9/25/2012

sell to open 10 Oct. 2012 $590 put options @ $1.21  (5.65% prob. exp. ITM)
buy to open 10 Oct. 2012 $500 put options @ $0.37  (1.57% prob. exp. ITM)


10/19/2012  (expiration)

buy to close the 10 "short" options @ $0.01

AAPL closed at $609.84, so all options expired perfectly.


Net gain:  $814.45  (in 24 days)

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New OPTIONS classes start soon.  Click here for details.

Priceline Oct. 2012 565/550 Put Spread (OPTIONS)

9/24/2012

sell to open 13 Oct. 2012 $565 put options  (8.90% prob. exp. ITM)
buy to open 13 Oct. 2012 $550 put options   (5.61% prob. exp. ITM)

credit:  $0.75


10/18/2012 (options expire on 10/19)

close entire spread at $0.38  (PCLN was dropping, so the risk of expiring ITM was high)

Net gain:  $421.02


Addendum:

PCLN closed at $560.50 on 10/19, expiration Friday.  I would have lost $4905 if I had not closed the entire position yesterday!

This is a fine example of risk management!!

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Learn to trade OPTIONS at Lilia's Investing Academy.

New OPTIONS classes start soon.  Click here for details.



Apple Oct 600/595 Put Spread (OPTIONS)

9/25/2012

sell to open 10 Oct. 2012 $600 put options at $1.69  (11.16% prob. ITM)
buy to open 10 Oct. 2012 $595 put options at $1.52  (10% prob. ITM)

credit:  $0.17


10/19/2012

AAPL closed at $609.84, so all the options expired perfectly!


Total gain:  $170  (3.40% return on capital in 24 days)

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Learn to trade OPTIONS at Lilia's Investing Academy!

New OPTIONS classes start soon.  Click here for details.


Amazon Oct 220/200 Put Spread (OPTIONS)

9/28/2012

sell to open 10 Oct 2012  $220 put options at  $0.40  (5.14% prob. ITM)
buy to open 10 Oct 2012  $200 put options at  $0.17  (2.07% prob. ITM)

credit:  $0.23


10/18/2012 (one day before expiration)

buy to close all 10 of the "short" options at $0.05

Why?  Because Google released their earnings prematurely during the day instead of after 1:00 pm today.  GOOG missed the estimates and the stock plunged 9%, dragging all the high P/E technology stocks with it.

I decided to play it safe and close out the short side before it becomes "in-the-money."

Net gain:  $154.47

Side note:  AMZN closed above $220 on 10/19, so this spread would have been fine.....but you never know.....so learn to manage the risk.....

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Learn to trade OPTIONS at Lilia's Investing Academy.

New OPTIONS classes start soon.  Click here for details.



Wednesday, October 10, 2012

Visa Oct 2012 110/100 Put Spread (OPTIONS)

8/24/2012

sell to open 10 Oct. 2012 $110 put options @  $0.50

buy to open 10 Oct. 2012 $100 put options @ $0.15


10/10/2012

buy to close Oct. 2012 $110 put options only @ $0.03

let the Oct. 2012 $100 put options expire on 10/19/2012


Net gain:  $294.48

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Click here for details.