Follow me on Twitter!

Follow me on Twitter!

Thursday, August 14, 2014

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