+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).
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!
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