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Wednesday, August 19, 2015

Spiders (SPY) August Jade Lizard

6/25/2015 (12:42:16 pm, PT)  RD

buy +4 August 2015  $216 calls at $1.24  [22% prob ITM]
sell -4 August 2015  $215 calls at $1.60  [26% prob ITM]
sell -4 August 2015  $203 puts at $2.18  [30% prob ITM]


Why did I place this trade?
  • stochastics in overbought region
  • max profit = $1016 if SPY closes between $203 and $215 at expiration


8/12/2015 (6:43 am, PT)  [stochastics bottom]

buy to close the four $215 short calls at $0.04 to remove the risk


8/19/2015 (11:12:45 am, PT)

buy to close the four $203 puts at $0.04 to remove the risk


8/21/2015 (expiration)

the four long $216 calls expired "worthless"

NET PROFIT:  $966.40


Success!!



THANK GOD I closed those four naked puts early because SPY closed at $197.63 on Expiration Friday!!!!  Those puts would have ended up ITM. 

The lesson here is:  
ALWAYS BUY BACK YOUR SHORT OPTIONS AND REMOVE THE RISK EVEN IF EXPIRATION FRIDAY IS JUST A FEW DAYS AWAY!!!



Use OPTIONS to enhance your returns and protect your portfolio.
Learn on your own for FREE by watching MY VIDEOS HERE or 
Pay for customized, one-on-one training (details HERE).

Tuesday, August 18, 2015

Spiders (SPY) Jade Lizard (options)

6/25/2015 (11:50:25 am, PT)

buy  +1 August 2015  $216 call at $1.25
sell  -1 August 2015  $215 call at $1.61  (27% prob ITM)
sell  -1 August 2015  $203 put at $2.18   (30% prob ITM)

Why did I place this trade?
  • stochastics in "overbought" region
  • if SPY closes between $203 and $215, profit = $254
  • if SPY closes above $216, profit =  $154 (fine)


8/13/2015 (12:26:36 pm, PT)

buy (to close) 1 August 2015  $215 call at $0.02 (to remove the risk)


8/18/2015 (9:50:44 am, PT)

buy (to close) 1 August 2015  $203 put at $0.05 (to remove the risk)


8/21/2015 (expiration)

the long $216 calls expired "worthless"

NET PROFIT:  $237.56


Success!







THANK GOD I bought back those short puts early because they would have ended up ITM on Expiration Friday (8/21/2015).  SPY closed at $197.63 on expiration.

Learn to trade OPTIONS.  It's easy, fun and profitable!
Learn on your own for FREE by watching MY VIDEOS HERE or
Pay for private, 1-on-1 training (details HERE).

Friday, August 14, 2015

Spiders (SPY) Aug Put Options

7/21/2015 (11:50:17 am, PT)  stoch top (bad!)

sell  -10 August 28, 2015  $202.50 puts at $1.00

Probability ITM:  20%


8/14/2015 (11:42:29 am, PT)

buy (to close) all 10 puts at $0.44

NET PROFIT:  $537.38

Success!





Learn to trade OPTIONS.  It's easy, fun and profitable!
Learn on your own for FREE by watching MY VIDEOS HERE or
Pay for private, 1-on-1 training (details HERE).