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Wednesday, August 27, 2014

Spiders (SPY) Sept 2014 Put Options

 SEE YOUTUBE VIDEO: WHEN TO SELL AND BUY BACK YOUR PUTS


8/6/2014

sold (to open) 1 Sept 2014 $188 put option at $2.55

cash received:  $255

probability of success:  64%


8/27/2014

bought (to close) put option at $0.22

NET PROFIT:  $229.93 (in 3 weeks)

SEE YOUTUBE VIDEO WITH DETAILED EXPLANATIONS





Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or pay for 1-on-1 training (details here).

www.moneyandlilia.com

Friday, August 15, 2014

Spiders (SPY) August Put Options

7/25/2014

sold (to open) 10 August 2014 $190 puts at $0.41

probability of success:  87%


8/15/2014 (expiration)

SPY closed at $195.72
Success!

NET PROFIT:  $395.25





Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).



Spiders (SPY) August Put Options

7/29/2014

sold (to open) 10 August 2014 $188 puts at $0.23

probability of success:  92%


8/15/2014 (expiration)

SPY closed at $195.72
Success!

NET PROFIT:  $215.25





Learn to SELL PUT OPTIONS and GET PAID up front.  It's easy, fun and profitable.

Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).

Thursday, August 14, 2014

Gold (GLD) August Put Options

7/22/2014 (RD)

Sold (to open) 2 August 2014 $124.50 puts at $1.23

Reasons for initiating this trade:
  • probability of success:  60%
  • bottom of stochastics (see chart)


8/14/2014

bought back both puts at $0.04
(this trade filled while I was still asleep!)

NET PROFIT:  $228.44





THE LESSON


  • On 7/22, GLD traded between $125.47 and $126.43.
  • On 8/14, GLD traded between $126.13 and $126.53 (see chart).
  • If I had bought 200 shares of GLD on 7/22 and sold them on 8/14, I would have broken even.
  • However, by SELLING GLD PUT OPTIONS instead, I made $228.44!

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Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).


Russell 2000 (IWM) Put Options

7/16/2014 

sold (to open) 1 August 2014 $111 put at $1.20

I got paid $120 (cash)

See my timing (chart)


8/14/2014 (see chart)

bought back the put at $0.05
(this trade filled while I was still asleep)

NET PROFIT:  $107.18




THE LESSON
  •  IWM was trading between $113.82 and $115.09 on 7/16 (when I sold my put option).
  • IWM was trading between $113.23 and $113.73 on 8/14 (when I closed my put position).
  • If I had bought 100 shares of IWM on 7/16 and sold them on 8/14, I would have lost money.
  • However, by SELLING an IWM PUT OPTION instead, I ended up with a NET PROFIT of $107.18!
  • This is why I love SELLING PUT OPTIONS.  I made money even when IWM went down.
 ----------------------------------------------------------------------------

Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).

www.moneyandlilia.com
Twitter:  @lilialam

Wednesday, August 13, 2014

Russell 2000 (IWM) Put Options

SEE YOUTUBE VIDEO (comprehensive lesson on how to manage "naked" puts that go "in-the-money")
  

7/9/2014 (12:16 pm, PT)

sold (to open) 6 August 2014 $113 puts at $1.33

Reasons for initiating this trade:
  • probability of success:  68%
  • almost at the bottom of stochastics (see chart)
  • candles at the 50 EMA (possible support)

8/13/2014 (9:31:41 am, PT)

bought (to close) all 6 puts at $0.49

Reasons for closing this position:
  • my short August 2014 $113 puts are FINALLY out-of-the-money (barely!!)
  • two days left until expiration (two days are a long time when the strike price is barely OTM)
  • almost at top of stochastics (see chart)
  • TAKE PROFITS! (VERY important)

NET PROFIT:  $480.68 (in 5 weeks)






THE LESSON

If I had bought 600 shares of IWM on 7/9/2014 ($116.56 average) and sold them on 8/13/2014 ($113.18 average), I would have LOST $2028 (approximately).

However, by SELLING PUT OPTIONS instead, I have a PROFIT of $480.68!
That's why I LOVE SELLING PUT OPTIONS.

On 8/1/2014, IWM traded as low as $109.86 (see chart) .  My August $113 puts were "in-the-money" by nearly $3.14.  If I had panicked and closed my position on 8/1, I would have ended up with a pretty large LOSS (nearly $1100).

However, because these options didn't expire until 8/15, I decided to hold them and wait.  As long as the "extrinsic" value of those options were still large, I was not at risk of early assignment.

-----------------------------------------------

Learn to SELL PUT OPTIONS and GET PAID up front.  It's easy, fun and profitable.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or pay for 1-on-1 training (details here).

Diamonds (DIA) August Put Options

7/30/2014 (FP)

sold (to open) 8 August 2014 $165 puts at $0.64

Reasons for initiating this trade:

8/13/2014 (11:01:20 am, PT)

DIA trading around $166.46 (see chart)

buy (to close) all 8 puts at $0.22

NET PROFIT:  $307.68




Reasons for closing this position:
  • take profits (VERY important)
  • remove the risk from the portfolio



THE LESSON:
  • When I initiated the trade on 7/30/2014, I thought the 50 EMA could be the "support" (see chart)
  • Clearly, I was wrong.  DIA "broke support" and dropped all the way down to $163-ish on 8/5/2014 (see chart)
  • My DIA Aug $165 puts were "in-the-money" for quite awhile.  Closing my position at that time would have resulted in a large LOSS.  Don't panic when your short puts go ITM.  There's plenty of time, so wait.....
  • I decided to close my position on 8/13/2014 because DIA was touching the 50 EMA which could be a new "resistance" (see chart).
  • I normally wait until the stochastics are at the top before I buy back my short puts.  However, in this case, because I only have two days remaining (until expiration) and there's a lot of volatility, it's best to close the position and TAKE PROFITS.

---------------------------------------------------------

Learn to SELL PUT OPTIONS and GET PAID up front.  It's easy, fun and profitable.
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or pay for 1-on-1 training (e-mail moneyandlilia888@gmail.com).

www.moneyandlilia.com
Twitter: @lilialam

Wednesday, August 6, 2014

Gold August Put Options

7/22/2014 (10:29 am)

[click here to see my timing on a chart]

sold (to open) 4 August 2014 $124 puts at $1.05

received $420 cash

Reasons for initiating this trade:
  • bottom of stochastics ("oversold") (see chart)
  • price of GLD was tucked in between the two moving averages (see chart)
  • probability of success:  65%


8/6/2014 (10:44 am)

bought back all 4 puts at $0.45

NET PROFIT:  $219.79 (in two weeks)

Reasons for closing this trade:
  • GLD has been pretty volatile the last two weeks
  • my strike price is just barely out-of-the-money
  • 9 days left until expiration (anything can happen)
  • TAKE PROFITS!

LESSONS:

I normally close (buy to close) my short puts when the stochastics are at the top, but in this case, with 9 days left, I decided to just take my profits and remove the risk from my portfolio.

GLD was trading between $125.47 and $126.43 on 7/22/2014 [when I sold (to open) my puts].  If I had BOUGHT 400 shares of GLD instead, I would have broken even on 8/6/2014 (when I closed my puts). 

That's why I prefer to SELL PUT OPTIONS.  I make money even if the underlying goes sideways.
 
-----------------------------------------------------

Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.

Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or
Pay for 1-on-1, personalized training (moneyandlilia888@gmail.com).