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Tuesday, January 20, 2015

Gold (GLD) Put Options

8/22/2014 (11:08:06 am, PT) LL

  • sold (to open) 4 October 2014 $120 puts at $1.21
  • probability of success:  69%


10/10/2014 (9:03:56 am, PT)  
  • GLD was trading between $117.19 and $117.74, so my puts were ITM
  • I rolled my 4 October 2014 puts to November 2014 (same strike of $120)
  • Received another credit of $1.12


11/5/2014 (10:00:08 am, PT)
  • GLD was trading around $110.27
  • My short puts had about $0.05 of extrinsic value remaining
  • I rolled my 4 November 2014 puts to March 2015 (same strike of $120)
  • Received another credit of $1.45


1/20/2015 (10:57:09 am, PT)
  • GLD was trading around $124ish
  • The stochastics were in the "overbought" region
  • I decided to close my position today
  • Unfortunately, however, the implied volatility was extremely high, so I had to overpay ($2.32) to buy back my short puts.  That's fine.  I just wanted to take my PROFITS.

TOTAL NET PROFIT:  $541.22                   Success!






Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at my YouTube Channel or
Pay for customized, 1-on-1 training (details here).


Friday, January 16, 2015

QQQ Ratio Put Spread

12/12/2014 (10:41:48 am, PT) LL

+1 January 2015 $101 put at $1.55
-2 January 2015 $100 puts at $1.30

maximum credit:  $1.05 x 1 x 100 =  $105
maximum potential profit:  ($1.05 + $1.00) x 1 x 100 =  $205

Why did I place this trade?
  • stochastics in the "oversold" region (see chart)
  • price approaching 50 EMA (possible support?)
  • probability of expiring ITM was 31% (for $100 strike)


1/15/2015 (12:41:53 pm, PT) (1 day before expiration)
QQQ was bouncing around $100 all day long (see chart).
I decided to sell (to close) my debit put spread for $0.64 ($64).


1/16/2015 (expiration)
QQQ closed at $100.82 (see chart).
My short strike was $100!  Whew!  That was close!!!!
I let my remaining short put expire.


TOTAL NET PROFIT:  $151.09                Success!




Learn to SELL RATIO PUT SPREADS!  You get paid up front and you can make money REGARDLESS of the direction of the underlying!

Learn on your own for FREE at YouTube or
Pay for 1-on-1 training (details here).

Friday, January 9, 2015

Spiders (SPY) January Put Options

12/10/2014 (11:22:08 am, PT) LL

sell (to open) 10 January 2015 $190 puts at $1.10

Why did I place this trade?
  • SPY was touching the 50 EMA (possible support) [see chart]
  • stochastics was near the oversold region [see chart]
  • probability of success:  83%


1/9/2015 (6:30:03 am, PT) 

buy (to close) all 10 puts at $0.03

TOTAL NET GAIN:  $1054.98               Success!



The lesson.....

On 12/10/2014 (when I sold my puts at $1.10), SPY was trading between $202.93 and $205.98.
On 1/9/2015 (when I bought back my puts at $0.03), SPY was trading between $203.51 and $206.42.
If, during the same time frame, I had bought 1000 shares of SPY instead of selling put options, I would have broken even.  However, by selling 10 put options, I came out with a profit of $1054.98!  That's why I love to sell put options!


Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at my YouTube Channel or
Pay for 1-on-1 training (details here).



Thursday, January 8, 2015

Spiders (SPY) January Put Options

12/16/2014 (12:42:59 pm, PT) LL

sold to open 1 January 2015 $196 put at $3.87

Why did I place this trade?
  • oversold region of stochastics (see chart)
  • high implied volatility because of FOMC announcement on 12/17
  • probability of success:  58%


1/8/2015 (1:04:28 pm, PT)

bought back put option at $0.14

Why did I close this trade?

NET PROFIT:  $369.93  (ROC 1.887% in 3 weeks, 2 days)

Success!



Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or
Pay for 1-on-1 training (details here).

Spiders (SPY) January Put Options

12/12/2014 (11:30:04 am, PT) FP

sold to open 2 January 2015 $186 puts at $1.15

maintenance required:  $5371.60

 
Why did I place this trade?

  • oversold region of stochastics (see chart)
  • touching 50 EMA (possible support)


1/8/2015 (9:48:55 am, PT)

bought back both puts at $0.04

Why?  TO TAKE PROFITS!

TOTAL NET PROFIT:  $212.44 (ROC 3.95% in 4 weeks)

Success!



Learn to SELL PUT OPTIONS and GET PAID up front!
Learn on your own for FREE at www.youtube.com/user/moneyandlilia or
Pay for 1-on-1 training (details here).