- 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!
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