sold (to open) 10 February 2015 $187 puts at $0.75
Why did I place this trade?
- "oversold" condition in stochastics (see chart)
- high implied volatility (high premiums)
- probability of success: 84%
2/4/2015, Wednesday (11:15 am, PT)
bought (to close) all 10 puts at $0.15
Why did I close my position?
- approaching "overbought" condition in stochastics (see chart)
- implied volatility has come down
- TAKE PROFITS!
NET PROFIT: $584.49
using margin, the return on capital is 2.067% in just 4 trading days!
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