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Friday, September 19, 2014

Spiders (SPY) August Ratio Spread (Options)

7/25/2014 (RD)

This is a ratio put spread (has the highest probability of success).

buy (to open) 3 August 2014 $197 puts at $1.61
sell (to open) 6 August 2014 $196 puts at $1.31 (62% probability of success)

The Lesson:
Why do a ratio spread on 7/25?
SPY was at the "top" of the stochastics (it's "overbought"), so it was likely to reverse back down in the near future.
See chart.


8/4/2014
I decided to sell (to close) the "debit spread" portion of the ratio spread because it was profitable on 8/4.
sell (to close) 3 August 2014 $197 puts at $3.33
buy (to close) 3 August 2014 $196 puts at $2.66
Received credit of $0.67

The Lesson:
SPY was "oversold" on 8/4 (see chart), so it's likely to reverse back up.  If it does go back up, I'll lose all the profits on the debit spread.  

But then......SPY may continue to drop, so the debit spread will become more profitable.  

So..... sell the debit spread on 8/4 and take my profits or leave it open for the possibility of making more $$$?  As traders, we're always faced with tough decisions.  

As Jim Cramer would say, "Nobody ever got hurt by taking profits!"


8/8/2014 (roll to Sept)
With 6 trading days remaining, I decided to roll my ITM August puts (see chart) to September to avoid assignment and to collect another credit.
buy (to close) 3 August 2014 $196 puts at $4.20
sell (to open) 3 September 2014 $195 puts at $5.67
received new credit of $1.47 


9/19/2014 (expiration)
SPY closed at $200.70, so my Sept $195 puts expired perfectly!

Here's all the math:

+1.01 (initial ratio spread)
+0.67 (closing profitable debit spread)
+1.47 (roll August to September)
--------------------------------------
 $3.15 x 3 x 100 =  $945 (gross)
 
TOTAL NET PROFIT:  $904.76



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 customized, 1-on-1 training (details here).


Spiders (SPY) Sept Put Options

8/12/2014
sell (to open) 10 September 2014 $178 puts at $0.57
probability of success:  almost 90%
Why place this trade?  SPY has been "oversold" and now it's on its way back up (see chart).


9/19/2014 (expiration)
SPY closed at $200.70, so my puts expired perfectly!

TOTAL NET PROFIT:  $562.24



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 customized, 1-on-1 training (details here).


Thursday, September 18, 2014

SPDR Industrials (XLI) Put Options

6/27/2014 
sell (to open) 1 August 2014 $54 put at $0.92
probability of success:  50% (I usually prefer a higher probability)

The lesson:
sell to open put options when the underlying is "oversold" (see chart)


8/6/2014
Ooops!!!!  XLI dipped all the way down to its 200 EMA.  (see chart)
My August short put is ITM.  Now what??















8/12/2014 (roll)
XLI is heading back up (see chart).
Roll my August $54 put to September for a new credit of $0.41.
buy (to close) 1 August 2014 $54 put at $1.67
sell (to open) 1 September 2014 $54 put at $2.08


9/18/2014
buy (to close) September put at $0.05 (see chart)


TOTAL NET PROFIT:  $123.36



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 customized, 1-on-1 training (details here).

Wednesday, September 17, 2014

Spiders (SPY) Sept Put Options

8/4/2014 (check out the timing on this chart)

sold (to open) 10 September 2014 $187 puts at $1.78

probability of success:  70%


9/17/2014 (FOMC at 11 am, PT)

bought (to close) all 10 puts at $0.03 at 9:31 am (PT) to remove the risk


NET PROFIT:   $1,734.98




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 customized, 1-on-1 training (details here).

Spiders (SPY) August/September Put Options

7/23/2014
sell (to open) 10 August 2014 $193.50 puts at $0.66
probability of success:  80%


7/31/2014 (roll to Sept)
buy (to close) 10 August 2014 $193.50 puts at $2.39
sell (to open) 10 September 2014 $190 puts at $3.16
New credit:  $0.77


9/17/2014 (FOMC at 11 am, PT)
buy (to close) all 10 September 2014 $190 puts at $0.05


TOTAL NET PROFIT:  $1,342.45
 




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 customized, 1-on-1 training (details here).

Spiders (SPY) Ratio Put Spread

7/25/2014 (this is a "ratio spread" which has the highest probability of success)
buy (to open) 2 August 2014 $197 puts at $1.71
sell (to open) 4 August 2014 $196 puts at $1.40 (62% probability of success)
Net credit:  $1.09


8/4/2014 (close profitable debit spread)
sell (to close) 2 August 2014 $197 puts at $4.46
buy (to close) 2 August 2014 $196 puts at $3.74
Net credit:  $0.72


8/6/2014 (roll to Sept to "keep the dream alive")
buy (to close) 2 August 2014 $196 puts at $3.98
sell (to open) 2 September 2014 $195 puts at $5.43
Net credit:  $1.45


9/17/2014 (9:37:29 am, PT..... FOMC at 11 am, PT)
buy (to close) 2 September 2014 $195 puts at $0.15


TOTAL NET PROFIT:  $581.53


 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 customized, 1-on-1 training (details here).




Diamonds (DIA) Sept Put Options

7/30/2014 (FP)

sold (to open) 2 August 2014 $166.50 puts at $1.03
probability of success:  65%


8/8/2014 (roll to Sept)
buy (to close) 2 August 2014 $166.50 puts at $2.79
sell (to open) 2 September 2014 $165 puts at $3.63
(received new credit of $0.84)


9/17/2014
buy (to close) 2 September 2014 $165 puts at $0.05



Here's all the math:
+1.03 (sell Aug put)
-2.79 (buy back Aug put)
+3.63 (sell Sept put)
-0.05 (buy back Sept put)
------------------------------
$1.82 x 2 x 100 =  $364 (gross)


TOTAL NET PROFIT:  $343.37          

  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 customized, 1-on-1 training (details here).