Follow me on Twitter!

Follow me on Twitter!

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).